Ministerial Loan Guarantee toolkit for individual homeownership
Process to apply for individual homeownership
- Approach your First Nation's Chief and Council and/or Housing Department to obtain their support in requesting a Ministerial Loan Guarantee (MLG) on your behalf. A lot should be assigned to your project. Make sure you are aware of any additional requirements that your First Nation may have.
- Obtain housing loan/mortgage pre-approval and work with a financial institution to arrange for pre-approved financing.
- Obtain a Band Council Resolution (BCR) or equivalent authorizing document from your Chief and Council in support of your application.
- Return to your lending institution and obtain a letter of intent for your loan.
- Complete the Ministerial Loan Guarantee application form. Upon approval, finalize the loan with your lender and ensure that your First Nation is eligible. Your First Nation may consider submitting an online application on your behalf.
- Submit an MLG package to Indigenous and Northern Affairs Canada once it has been finalized with your lender. The applicant is responsible for all costs associated with work undertaken prior to approval.
Individual homeownership package checklist
The following must be included in your MLG package:
- original BCR or equivalent authorizing document
- MLG application form
- site map of project
- project description for the purposes of an Environmental Assessment
- copy of a letter of intent or a copy of a Loan Agreement from an approved lender
- certificate of Insurance from Canada Mortgage and Housing Corporation
Once you have all the items, send the completed package to your regional office. For more information contact your lender. If you live in Yukon, consult the Yukon office for more information about your specific requirements under the Yukon Environmental and Socio-economic Assessment Act.
Please note that your First Nation must ensure that Indigenous and Northern Affairs Canada’s Financial and Capital Reporting is up to date, as this is a requirement for approval.
A homeowner with a Ministerial Loan Guarantee is expected and required to make regular loan payments to the financial institution. The First Nation is expected to work with the homeowner to ensure timely payments of the loan to the lender.
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