Qualicum Beach

Lending in Qualicum Beach

Let’s be clear about what Qualicum Beach is from a lending perspective. It’s a retirement community, full stop. The numbers are almost comical if you’re used to looking at growth markets. The median age is 67.5 years old. Over half the town—56.3% to be exact—is 65 or older, while the working-age population is a tiny 36.9%. Predictably, the employment rate is just 31.9%. You don’t bring us a deal here talking about job growth or economic expansion, because there isn’t any. The entire local economy is built to service the residents who are already here. The top industries tell that story perfectly: health care, retail, and construction to build and fix the homes for all the retirees. It’s a closed loop.

This demographic reality creates a market that runs on equity, not income. The business model of Qualicum Beach is simple: people sell their expensive homes in Vancouver or Calgary, move here with a pile of cash, and buy a house. This constant inflow of outside capital fuels steady demand and creates an incredibly stable and predictable real estate environment. The housing stock itself adds to this stability. Nearly 80% of the dwellings are single-detached houses. This isn’t a town with a significant rental market or high-density development; it’s a community of homeowners. Properties are easy to move because they offer a specific, desirable lifestyle. The mild climate, beaches, and local attractions like Milner Gardens mean that even in a down market, there’s always another retiree ready to buy in. The slow but steady population growth, about 4% since 2016, just reinforces this picture of quiet, reliable demand.

That stability is why we lend in Qualicum Beach. The market has a built-in floor that most other small towns lack. However, we’re not blind to the risks. The local economy is narrow and lacks any real dynamism on its own. The median household income is only $76,500, and the unemployment rate sits at 7.7%, which is a bit high. This is the central tension for us as a lender. We see the immense value in the real estate assets and the unwavering demand from cash-heavy buyers. But we also recognize that we aren’t betting on a growing local economy; we’re betting on the town’s enduring appeal as a final destination. It’s a classic example of a community that fits our equity-based model, but it’s not a place for high leverage.

All of this brings us to our final number. For these reasons, our maximum loan-to-value in Qualicum Beach is 65.0%. This LTV is our calculated position, reflecting the balance between a highly desirable, liquid real estate market and a fundamentally modest economic profile. It’s a solid, predictable town for equity lending, and we’re comfortable playing here as long as the deal is structured conservatively. We see it as a resilient market, helped by its proximity to Nanaimo and Parksville, but its real strength comes from its powerful appeal to a very specific, and very stable, home-buying demographic.