Silverton

Brokers looking at Silverton need to understand it for what it is: British Columbia’s smallest municipality by area. At just 0.35 square kilometers on the eastern shore of Slocan Lake, it’s a place defined by its constraints as much as its scenery. The “Silvery Slocan” mining rush that put this town on the map in the 1890s is now the stuff of its outdoor museum and heritage sites. The economic engine isn’t mining anymore; it’s a quiet hum of small-scale tourism and local services.

The lifestyle is the entire point. People choose Silverton for its quiet isolation and Kootenay mountain scenery, not for career opportunities. The demographics tell the story clearly: with a median age of 64, this is effectively a retirement community. Seniors sixty-five and over make up nearly half the population (48.3%), a figure that perfectly mirrors the entire working-age demographic. With children making up less than 7% of residents, it’s clear this isn’t a growth centre attracting young families. The local economy is just as narrow. The employment rate is a low 34.4%, and the job market is propped up almost entirely by construction and healthcare. This lack of diversity makes the town’s economy exceptionally vulnerable to downturns. It’s not a criticism, just a key underwriting factor.

From a lending perspective, the real estate market is microscopic. The entire municipality contains only 128 private dwellings. The housing stock is almost entirely single-detached homes (94%), with a handful of duplexes making up the rest. There are no apartments, no row houses, and no condos. This tells you everything about the type of buyer the town attracts and, more importantly, the lack of a diverse buyer pool. When a property comes up for sale, it’s not hitting a broad market; it’s targeting a niche buyer seeking that specific remote lifestyle. In a foreclosure scenario, this means a significantly extended marketing period is almost a guarantee. The path to liquidating an asset here isn’t quick or straightforward.

All of this informs our position on lending here. We recognize the appeal for the right borrower and will finance properties in Silverton, but our risk assessment has to be conservative. The lack of economic diversity, the declining and aging population, and the shallow real estate market mean we have to protect our investors’ principal with a lower loan-to-value. For deals in Silverton, our maximum LTV is 55.0%. We’re looking for borrowers with significant equity who understand exactly what they’re buying into. It’s a stable community, but it’s not a liquid market, and our lending reflects that reality.