Ladysmith

Ladysmith is a distinct market on Vancouver Island. Don’t think of it as a Nanaimo suburb; it has its own gravity, even if it feels the pull from the city up the highway. The town’s character comes from its coal and logging past, which you can still see in the well-kept historic downtown. It’s not a flashy resort town or an economic engine. Instead, it’s a stable community that’s found a comfortable groove after its resource days, now running on local retail, healthcare, and construction.

For our purposes, the main thing to watch is the local economy. It’s steady but not dynamic. The biggest employers are in retail, healthcare, and construction—solid sectors, but you won’t find the wage growth here that you see in tech-heavy hubs or resource boomtowns. The 8.0% unemployment rate is a yellow flag, as is the fact that over a fifth of all household income comes from government transfers. This tells us that local borrowers are more vulnerable to economic shocks, which is a key part of our risk assessment. We aren’t seeing the kind of speculative pressure that drives prices on other parts of the Island; this is a mature and predictable market.

So why are we comfortable lending here? Because Ladysmith’s real value isn’t tied to the local job market. It’s a lifestyle destination. The numbers prove it: the median age is high at 52.8, and seniors make up over 30% of the population. This is a prime landing spot for retirees from across the country, cashing out of more expensive markets to take advantage of the mild climate and coastal charm. These are buyers bringing equity from Vancouver, the prairies, or Ontario, creating a deep and consistent pool of demand that isn’t dependent on local employment.

This external demand is our safety net. In a foreclosure, our exit strategy isn’t limited to finding a local buyer who can qualify on a modest income. We can market the property to a much wider, more affluent demographic. The housing stock helps, too. Over two-thirds of the homes are single-detached houses, which are simple to value and move. There are no complex condo buildings with high strata fees or unusual property types to worry about, just straightforward, marketable homes.

It’s this balance that defines our strategy in Ladysmith. The strong external demand from retirees provides a solid floor for property values, but the fragile local economy puts a ceiling on our risk appetite. It’s a classic equity lending market, and we need to structure deals accordingly. We’re confident lending on the right properties here, but we have to be disciplined. For Ladysmith, our maximum loan-to-value is 70.0%.