Sun Peaks

Sun Peaks is a purpose-built resort municipality. Let’s be clear about what that means from a lending perspective. It’s not a traditional town that happens to have a ski hill; the resort is the town. Located a 45-minute drive from the services and transport hub of Kamloops, its entire economic existence is tied to tourism, specifically winter sports.

The numbers tell the story. Sun Peaks is Canada’s second-largest ski area, and its economy reflects that singular focus. Accommodation, food services, and recreation account for a third of all jobs. This creates a powerful draw for a specific type of buyer—the population has grown over 127% since 2016—but it also presents a concentrated risk. We see it in the 10.6% unemployment rate and a housing market dominated by condos and townhouses, which comprise nearly two-thirds of all homes. Single-family detached homes are a small fraction of the market. This isn’t a flaw; it’s the signature of a resort community.

That economic reality—high seasonal appeal but a narrow industrial base—is why we cap our exposure here. We’ll lend in Sun Peaks, but our maximum LTV is 60.0%. The recreational draw is undeniable, and in a strong market, a foreclosed property would likely move within a couple of months. But we underwrite for the downturn. If the tourism sector takes a hit, we anticipate sale timelines could easily stretch to six months with a price haircut of 10-15%. Our model is built on protecting principal, and that requires a conservative position in a market this specialized.

It’s also impossible to understand Sun Peaks without acknowledging its foundation. The resort was built on traditional Secwépemc territory, an area of deep cultural significance known as Skwelkwek’welt. The province granted a master lease to the resort operator, bypassing treaty negotiations. This isn’t just history; it shapes land use and development authority to this day, concentrating control with the resort itself. For brokers, this isn’t a historical footnote; it’s essential for understanding the long-term development landscape.

For the right deal, Sun Peaks works. We see opportunities for bridge financing for buyers waiting for a city home to sell, or for equity take-outs for long-time owners. But every file needs to be assessed against the backdrop of a resort economy. The appeal is strong, but the fundamentals demand a disciplined approach. We’re comfortable here, but we’re not getting over our skis.