Sun Peaks

Underwriting Sun Peaks: A Guide for Mortgage Brokers

Sun Peaks functions differently than your average BC interior community. As a mountain resort municipality, it operates less like a traditional town and more like a master-planned alpine village. Located roughly 45 minutes northeast of Kamloops, it features Canada’s second-largest ski area. While this positioning makes it a major tourism hub, it also means the local economy is highly sensitive to seasonal weather patterns and tourism cycles.

The permanent population has grown rapidly to 1,404 residents, representing a 127.9% increase since 2016. This year-round figure is misleading because it does not reflect the dramatic population swings between winter and summer. During peak ski season, the resort swells with seasonal employees, property owners, and tourists. During the spring and autumn shoulder seasons, activity drops off significantly. For essential services, professional services, and major retail, residents commute into Kamloops.

If you are submitting a deal in this market, expect to deal primarily with strata properties. Single-family detached homes represent just 16.8% of the local housing stock. The remaining inventory consists of apartments under five storeys at 46.4%, row houses at 17.6%, and duplexes at 13.6%. Many of these units are owned by recreational buyers from the Lower Mainland or Alberta who use them as vacation properties and generate revenue through short-term rentals. Because of this, our underwriting team reviews the specific zoning and strata bylaws for every file to identify any rental restrictions or covenants.

The local labor force is heavily concentrated in accommodation and food services, which accounts for 19.9% of employment, followed by arts, entertainment, and recreation at 13.0%. While the population is highly educated—76.6% hold post-secondary credentials—the local economy remains service-driven. Consequently, there is a mismatch between local wages and property values, with real estate prices driven by outside equity rather than local incomes.

From a lending perspective, Sun Peaks is a well-managed municipality with a growing summer tourism product and reliable access via the Kamloops airport. However, recreational and resort real estate is subject to sharper valuation swings than primary residential markets. When macroeconomic conditions tighten, non-primary residences are often the first assets owners list for sale, leading to extended days-on-market during downturns.

To mitigate these liquidity risks, Tekamar limits exposure in this market to a maximum LTV of 60.0%. We look at files on a case-by-case basis, including purchases, refinances, and bridge financing. When preparing your submission, ensure you provide complete strata documentation, including depreciation reports, recent meeting minutes, and financial statements, so we can assess the health of the building corporation.