Financing options from CMHC Loan Insurance for First Nation on-reserve housing
Press release
Opening New Doors to Homeownership On-Reserve: CMHC Loan Insurance Helps First Nations Access Housing Financing Options
Ottawa, Ontario - July 15, 2011 - Having a safe, affordable place to call home is about more than four walls and a roof. A home is an important source of pride and is essential to the health and well-being of families and communities across the country.
To help create easier access to housing and better housing conditions on-reserve, Canada Mortgage and Housing Corporation (CMHC) offers three innovative loan insurance options that can enable First Nations to borrow the funds to buy, build or renovate a home of their own:
1. Loan Insurance with a Ministerial Loan Guarantee. This loan insurance option may assist First Nation members living on reserve in accessing financing for the construction, purchase and/or renovation, of housing. First Nation members must be able to obtain a Ministerial Loan Guarantee (MLG) from the Minister of Aboriginal Affairs and Northern Development.
2. Leasehold Market Housing On-Reserve. This loan insurance option may assist First Nation members in accessing financing for the construction, purchase and/or renovation, of leasehold market housing on- reserve (e.g. designated lands). First Nation members must be able to obtain a Ministerial Loan Guarantee (MLG) from the Minister of Aboriginal Affairs and Northern Development. An MLG is not required in cases where First Nation members are able to provide a minimum 10 percent down payment from one of the following sources: cash savings, withdrawal from the borrowers Registered Retirement Savings Plan (RRSP), proceeds from the sale of another property.
3. CMHC Insurance for Loans Facilitated Through the First Nations Market Housing Fund (FNMHF). Eligible First Nation members who wish to buy, build or renovate a home on-reserve may obtain a CMHC-insured housing loan from an Approved Lender designated as an eligible lender by the FNMHF. The First Nation must also be qualified by the FNMHF and agree to provide a guarantee for the members' housing loans. For more information about the FNMHF visit www.fnmhf.ca.
Eligibility for CMHC's On-Reserve Loan Insurance options may require prior participation from the First Nation. As well, First Nation borrowers must also be able to satisfy the Approved Lender financing requirements including, for example, minimum down payment requirements and be able to support repayment of the loan.
For more information on CMHC's On-Reserve Loan Insurance options, or for information on any other aspect of owning, maintaining or buying a home, visit our web site at www.cmhc.ca or call CMHC at 1-800-668-2642. For more than 65 years, Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency and a source of objective, reliable housing expertise.
Contact Information
CMHC Media Relations
National Office
(613) 748-2799
media@cmhc-schl.gc.ca