Lumby

Lending in Lumby

Lumby isn’t a suburb of Vernon; it’s the last stop before the Monashees. It’s a grounded, rural village with an identity tied to agriculture, outdoor recreation, and a surprisingly legitimate arts scene. With a population just over 2,000 spread across almost six square kilometers, the low density is part of the appeal. You won’t find a resort-town atmosphere here. The lifestyle is for people who want access to the mountains and a bit of acreage, not for those looking for a smaller version of Kelowna. Its proximity to Vernon—about a 30-minute drive—is a necessary link to broader services, but Lumby is its own place.

From a lending perspective, we see a community in a slow, steady transition. While it feels like an agricultural town rooted in its history, the employment numbers tell a different story. The paycheques today are more likely coming from construction and healthcare than from the orchards. The housing market reflects this rural character. It is overwhelmingly dominated by single-detached houses, which account for two-thirds of all dwellings. You’ll find very few apartments or row houses, and basically no duplexes. This lack of housing diversity means the market serves a specific buyer—someone looking for a traditional home, maybe with some land—and it can limit the options for first-time buyers or those seeking smaller units.

Frankly, the local economic indicators require a conservative approach. A median individual income of $36,400 and an unemployment rate of 8.8% signals a workforce with limited resilience in a downturn. While the median household income is a more respectable $77,000, this suggests many families rely on two incomes. The economy itself leans heavily on cyclical sectors like construction and has a notable manufacturing component that could be vulnerable to disruption. Demographically, the town is also aging, with nearly a quarter of the population over 65 and a relatively small working-age cohort. This profile shapes our view of long-term economic stability and the potential buyer pool in a foreclosure scenario.

This is why our position in Lumby is clear and pragmatic. We see good opportunities for well-qualified borrowers with significant equity, particularly for deals involving debt consolidation, bridge financing, or second mortgages on single-family homes. But we are not an aggressive lender here. Our risk tolerance is informed by the town’s specific economic profile and the need to protect our investors’ principal. A forced sale in a market this small means a limited number of buyers and a potentially longer sales timeline. Our underwriting has to account for that.

For brokers considering sending a file, our maximum LTV in Lumby is 60.0%. It’s a firm ceiling that’s based on the community’s specific risk profile. We’re open for business here, but the deal structure needs to make sense for a small, rural market without the liquidity of a larger Okanagan centre.