Ministerial Loan Guarantees

Ministerial Loan Guarantees (MLG) are a requirement to secure most on-reserve housing loans. The Crown ownership of First Nations lands can make it difficult for community members to obtain financing for housing construction or mortgages.

History of Ministerial Loan Guarantees

AANDC was first granted authority by Parliament to provide MLGs to First Nations in 1966 to provide securities to obtain loan financing for housing projects. Over the years, the Department has received increases to its Ministerial Loan Guarantee Authority in response to the growth in population and increased need for housing loans.  The most recent increase was approved in October 2008, raising the Department's authority to $2.2 billion against its previous authority of $1.76 billion.

Purpose of Ministerial Loan Guarantees

MLGs can be used to secure loans for the purpose of construction, acquisition, or renovation of on-reserve housing projects.

What Information is Available?

In this section, find the policy for MLGs, and detailed procedures for managing the loan guarantee authority.