Warfield

Lending in Warfield, BC

You can’t talk about Warfield without talking about the Trail smelter. The village basically exists because of it, built by the Consolidated Mining and Smelting Company (CM&S) in the 1930s to house its workers. That company-town DNA is still obvious in its layout and housing. Geographically, it’s tucked right at the base of the hill leading up to Rossland, making it a bedroom community for both Trail’s industrial base and Rossland’s world-class recreation. It’s the sweet spot between work and play.

For borrowers, Warfield offers a quieter, more residential feel than Trail and better value than you’ll find up the mountain at the ski hill. The housing stock is a direct reflection of its history. This isn’t a place for new subdivisions or high-density development. Single-detached homes make up over 80% of the market, most of them modest, well-built houses from the 1930s and 40s that have been looked after for decades. There’s a small slice of low-rise apartments, about 13%, but you’ll find almost no row houses or duplexes. This consistency gives the town a stable, predictable character, with distinct neighbourhoods like “Mickey Mouse Town” that CM&S planned from the start.

The vibe here is a mix of working families and, increasingly, retirees. With a median age of 44.8 and nearly a quarter of the population over 65, it’s not just a place to raise kids anymore. It’s also a landing spot for those cashing out of bigger cities, looking for the Kootenay lifestyle without the resort-town price tag. Proximity to Red Mountain for skiing and the Selkirk mountains for hiking provides the lifestyle appeal, while the amenities and healthcare in nearby Trail cover the practicalities. The population reflects this slow-burn appeal, growing a modest 4.3% since 2016 to just over 1,750 residents. It’s stable, not explosive.

From a lending perspective, Warfield is a solid but small market. The town’s economic health is no longer solely tied to the smelter. Healthcare and social assistance is now the top employer, accounting for over 19% of jobs, with manufacturing sitting at 12%. That diversification is a good thing; it buffers the town from the volatility of the resource sector. However, this is still a small labour market with a 7.1% unemployment rate. The median household income of $90,000 is healthy and supports local property values, but the limited number of employers means we have to be realistic about liquidity.

A property in Warfield will sell, but it won’t sell overnight. It’s a classic case of a stable asset in an illiquid market. In a default scenario, we have to price in a longer holding period and the costs that come with it. Our risk appetite here is clear: we are comfortable with the community and the quality of the homes, but the small scale of the market demands a significant equity buffer to protect our investors. We see good files from Warfield, but we hold the line firmly on our exposure.

For deals in Warfield, Tekamar’s maximum LTV is 60.0%.