Slocan

Slocan isn’t a place you land by accident. Its identity was forged in the old “Silvery Slocan” mining rush of the 1890s, and you can still feel that boom-and-bust, fiercely independent character. This isn’t a suburb or a resort town; it’s a community built by waves of people looking for something different—the Sinixt Nation, Doukhobor farmers, Japanese families who stayed after internment, and American back-to-the-landers. For a broker, this means the story behind a deal here is rarely straightforward.

Borrowers are drawn to the Slocan Valley for its self-sufficient, off-the-grid appeal. They value lifestyle over high-paying jobs, and their income sources can be unconventional. The town has grown over 30% since 2016, which tells you people want to be here. But that growth isn’t built on a strong local job market. There are no major mills, tech hubs, or institutional employers providing stability. The economy runs on small-scale tourism, arts, and the kind of entrepreneurial grit that defines the Kootenays. It’s a place where people make their own way.

That independent spirit is the draw, but our decisions are based on the numbers. The statistics paint a stark picture. The unemployment rate is a staggering 19%, and the median individual income is just $28,400. This presents a fundamental challenge for affordability. The demographics tell a similar story: with nearly a third of the population over 65, the core working-age group is smaller than average. The top industries are a mix of retail, construction, health care, and resource-based sectors, all vulnerable to economic shifts. This isn’t a criticism; it’s the core risk factor that shapes our lending approach in the valley.

A property’s value is completely dependent on the local economy’s ability to support it, especially in a forced sale. Slocan is a tiny market with just 379 people. The housing stock is overwhelmingly single-detached homes, which narrows the pool of potential buyers. In a foreclosure scenario, the timeline could be long and the number of qualified local buyers—people who can actually get a mortgage with local incomes—is very small. Our entire model is built on protecting our investors’ capital, which means every loan is filtered through a conservative, worst-case recovery scenario.

Given the economic fragility and thin market, our exposure in Slocan has to be managed carefully. We are active here and will look at deals, but our risk tolerance is much lower than in larger centres like Vernon or the Comox Valley. For Slocan, our maximum loan-to-value is 55.0%. We’re looking for borrowers with significant equity, a clear financial plan, and a strong story. This is a market for well-secured bridge loans and second mortgages, not high-ratio financing.