New Hazelton
Lending guidelines for New Hazelton, British Columbia
Last reviewed by Tekamar Mortgage Fund on
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New Hazelton is a remote, tiny market of about 600 people where houses can sit on the market for up to a year. Because of that severe lack of liquidity and a high 15.3% unemployment rate, Tekamar caps LTV at 50%. It's a solid option, but only if your client has massive equity and deep local roots.
Market Overview: New Hazelton
New Hazelton sits along Highway 16 in northern British Columbia, serving as part of the corridor between Smithers and Terrace. Along with Old Hazelton and South Hazelton, this regional hub connects several communities, but New Hazelton itself has a small local footprint with a population of just 602. While the area has seen a modest population growth of 3.8% since 2016, the real estate market remains exceptionally thin. The entire community contains only 305 private dwellings. This low transaction volume makes property valuation highly subjective and market liquidity a primary concern for alternative lenders. Because of these distinct market dynamics, Tekamar caps the maximum loan-to-value (LTV) at 50.0% in this community.
Underwriting and Economic Profile
When evaluating applications in New Hazelton, brokers must look closely at the employment and income profile of the borrower. The local economic indicators show an unemployment rate of 15.3% and an overall employment rate of 47.6%. This is a resource-dependent and service-focused market where public sector stability coexists with seasonal and cyclical industries.
The largest local employment drivers are educational services at 13.6% and health care and social assistance at 11.9%. Outside of these fields, the workforce relies on mining, quarrying, and oil and gas extraction, which accounts for 10.2% of local jobs, followed by retail trade at 10.2% and accommodation and food services at 10.2%. Commuting is common for regional projects; while the average commute time is 18.1 minutes, 60.9% of working residents enjoy a commute of under 15 minutes. Given these employment dynamics and Tekamar’s economic score of 6/10 for the community, we structure our loans defensively to protect investor capital.
Housing Stock and Liquidity Risks
The housing inventory in New Hazelton is heavily weighted toward single-detached homes, which make up 74.1% of the total properties. Row houses account for 7.4%, while apartments in buildings under five storeys and movable dwellings each comprise 3.7%. There are no duplexes in the community.
While the lower cost of real estate here appeals to buyers who find themselves priced out of larger centers like Smithers or Terrace, the exit strategy for a lender is always more complex in rural markets. If a borrower defaults, a property in a market with only 305 total dwellings can sit on the market for several months. Foreclosure timelines in British Columbia, combined with accumulating carrying costs on a slow-selling asset, can quickly erode equity. This illiquidity is the primary driver behind our strict 50.0% LTV cap.
Lending Strategy
While institutional lenders often bypass rural northern corridors entirely, Tekamar looks for ways to make viable deals work. We assign New Hazelton a desirability score of 5/10, recognizing its functional infrastructure, including fibre-optic internet that supports remote workers, and its proximity to the Bulkley and Skeena rivers.
If your client needs a bridge loan, debt consolidation, or an equity withdrawal on a property in New Hazelton, we can help put the deal together. The key to a successful submission is ensuring the request fits within our 50.0% LTV limit to offset the structural liquidity risks of the northern real estate market.
the Nearest Tim Hortons
the Nearest Costco
Local Hospital
Frequently Asked Questions
The maximum LTV is capped at 50% to protect against the high costs of foreclosure in a remote area. With such a slow-moving real estate market, we need a significant equity buffer in case a property takes a year or more to resell.
The economy is fragile, defined by a high 15.3% unemployment rate and reliance on volatile mining and government transfers. To get a deal done, your borrower needs a stable income source, like local education or healthcare, and deep roots in the community.
Any file with less than 50% equity is an automatic deal-breaker. Additionally, trying to pitch a quick resale or speculative flip will sink the deal, as the shallow buyer pool makes rapid turnarounds impossible.
Our Mortgage Products Available in New Hazelton
| Mortgage Product Name | Max LTV | Key Notes for New Hazelton |
|---|---|---|
| Variable Income | 50.0% | Standard product terms |
| Bare Land and Unique Properties | 50.0% | Standard product terms |
| Bridge Financing | 50.0% | Standard product terms |
| Equity Lending / Refinance | 50.0% | Standard product terms |
| Purchases | 50.0% | Standard product terms |
Detailed Mortgage Product Information
Variable Income
Maximum Loan-to-Value (LTV) for Variable Income in New Hazelton:
50.0 %
“Their income is all over the map, but there’s definitely income…”
Here’s a funny thing about lending based on Line 15000 of your Notice of Assessment: It’s a neat little box to underwrite against. Works great if you’re a salaried employee. Not so great if you’re running a fishing charter in Campbell River where thres fishing season, and the rest of the year.
We get it. Income isn’t always ti...
Bare Land and Unique Properties
Maximum Loan-to-Value (LTV) for Bare Land and Unique Properties in New Hazelton:
50.0 %
“The appraisal came back as ‘property type: other’…”
Here’s a truth about real estate that nobody wants to admit: not everything fits in a box. Banks have boxes. Nice, tidy boxes labeled “single family home” and “condo” and “townhouse.” Their computer systems literally don’t have a dropdown menu option for “converted church with commercial kitchen” or “geodesic dome on 40 acres.”
We’ve funded...
Bridge Financing
Maximum Loan-to-Value (LTV) for Bridge Financing in New Hazelton:
50.0 %
“Subjects came off their current home last week but their new place closes Friday…”
Here’s a funny thing about bridge financing: everyone thinks it’s complicated. It’s not. Someone needs to close on their new house before their old house sells. Or their sale fell through after they removed subjects on their dream home. Or they found the perfect downsizer condo but haven’t listed the family hom...
Equity Lending / Refinance
Maximum Loan-to-Value (LTV) for Equity Lending / Refinance in New Hazelton:
50.0 %
“They have tons of equity but don’t qualify under B20…”
Here’s the thing about equity lending: it exists because banks literally can’t do it. B20 guidelines require income verification. Full stop. No wiggle room. No common sense exceptions.
We’re provincially regulated. The funds we lend on come from individual investors, not the Bank of Canada. So when your client has 50% equity but their in...
Purchases
Maximum Loan-to-Value (LTV) for Purchases in New Hazelton:
50.0 %
Moving is supposed to be exciting. New town, new job, new chapter. So why do banks act like you’re asking for their firstborn when you need a mortgage?
“You haven’t been at your new job for thre months”
“Your self-employment income doesn’t count in a new market.”
“We need to see established a year if you are part time contract - even if you’re working 40 hours under your new role”
Meanwhile...