On Reserve Homeownership Loan Insurance Pilot Product without Ministerial Loan Guarantee (MLG)

This new non-subsidized product for the purchase, construction or renovation of a home on-reserve is offered to qualifying First Nation communities on a pilot basis. It will allow eligible First Nations to facilitate insured mortgage financing for qualifying band members without a Ministerial Loan Guarantee (MLG).

Who is eligible?

First Nations who meet the established eligibility criteria can apply.

How does the product work?

Since reserve lands cannot be mortgaged, the normal mortgage security is replaced by a trust agreement between CMHC, the First Nation and Trustees.

• This product requires an upfront contribution to the trust by the First Nation.
• A MLG is not required. CMHC provides loan insurance to Approved Lenders (banks, Aboriginal Capital Corporations, credit unions, etc.) permitting them to make loans on lands designated as Indian Reserves.
• Qualified homebuyers from participating First Nations may obtain a CMHC insured loan with a minimum down payment of 5% of the lending value of the home. For renovation loans, a minimum of 10% equity is required. Regular CMHC mortgage underwriting criteria, application fees and insurance premiums apply.

Where can I get more information?

Contact the local CMHC office.