Masset

Masset is not on the way to anywhere. It’s at the far north end of Haida Gwaii, an archipelago defined by its isolation, its dramatic landscape, and its deep roots in Haida culture. This is not a typical BC town; it is two distinct communities side-by-side: Masset proper and the Haida village of Old Masset. The entire area is ancestral Haida land, a fact that shapes everything from the local economy to the totem poles that are a living part of the landscape.

The local economy is on shaky ground. The old anchor, Canadian Forces Station Masset, is a shadow of its former self. The “elephant cage” antenna is still there, but the economic engine it represented is long gone. Today, the drivers are public sector jobs. Health care and education account for a huge slice of employment, supplemented by a tourism sector built on the global reputation of Haida art. The unemployment rate is 12.8% and the median household income is just $67,000. These are hard numbers that point to a fragile, undiversified economy. This is not a market with multiple industries to fall back on if one sector takes a hit.

For a lender, the biggest problem is the market’s extreme remoteness. The official population is only 838, with a median age of 44 and over 20% of residents aged 65 or older. This demographic, focused on lifestyle-seeking retirees, creates an incredibly shallow pool of potential buyers. Getting to Masset is a major trip, and selling a property there is just as difficult. In a foreclosure, the time it would take to take possession and sell a property would be seriously extended. Every month a foreclosed property sits unsold, it racks up carrying costs like interest, legal fees, and property taxes, all of which eat away at the equity we are lending against.

On top of the logistics, the housing situation is complex. The issues in Old Masset that led to the Newtown subdivision are a perfect example of a market that does not follow mainland rules. The housing stock is dominated by single-detached homes, but that does not make valuations any easier. Appraisals are tough, and trying to predict resale value in a foreclosure is a guessing game. Our entire lending model depends on having a clear and predictable path to get our money back if a loan defaults. In Masset, that path is completely obscured.

For these reasons, our maximum loan-to-value in Masset is 0.0%. We have immense respect for the unique culture and history of Haida Gwaii. But the practical reality is that recovering an asset in such a remote market is too risky for us. Our first duty is to protect the capital our investors trust us with, and in this market, we cannot find a safe way to do that.