Telkwa

Lending in Telkwa

Think of Telkwa as the bedroom community for Smithers. It’s just 15 kilometers down the highway, offering a quieter, more affordable version of the Bulkley Valley lifestyle. While the village has its own history tied to the old Grand Trunk Pacific Railway, its modern purpose is to support the larger service center next door. The data backs this up: the population is young, with a median age of 35.6, and it grew by over 11% between 2016 and 2021. It’s attracting working families who want the small-town vibe but need Smithers for jobs and major shopping.

The housing stock tells the same story. This is a town of houses, not condos. Single-detached homes make up nearly 90% of all dwellings, creating a stable, non-speculative market of owner-occupiers. That’s a good sign for community investment and pride of ownership. People who live here are putting down roots. The appeal is clear, with access to world-class fishing, hiking, and a tight-knit community feel that makes it a desirable spot for people seeking a quiet life.

However, our lending position has to be grounded in the economic reality, and Telkwa’s local economy is thin. The biggest employment sectors are healthcare, construction, and retail. These are essential services, not primary economic drivers that generate significant wealth or attract new industry. There’s no major mill, mine, or year-round tourism engine that provides a deep, local employment base. While the median household income is a healthy $101,000, much of that money is earned outside the village. This heavy reliance on a neighboring town for jobs and economic stability is a key risk factor for us.

From a lender’s perspective, Telkwa’s small size and location are what drive our caution. In a default scenario, we have to assess market depth. With a population just under 1,500 people, the pool of potential buyers for a foreclosed property is naturally small. A listing could easily sit on the market for a long time, racking up costs and cutting into any remaining equity. Our entire model is built around worst-case recovery scenarios, and in small, relatively isolated markets, that recovery is always slower and less certain.

For these reasons, our approach in Telkwa is conservative. We are happy to lend here, but we need to see significant borrower equity in the deal. Our maximum loan-to-value in Telkwa is 45.0%. This LTV isn’t a judgment on the quality of the homes or the people; it’s a straightforward risk calculation based on market size, the lack of local economic drivers, and the potential time it would take to sell a property. We’ll look at any file for a well-qualified borrower, but the numbers have to account for the realities of lending in a town without a stoplight.