Millbrook First Nation members can get mortgages on-reserve for the first time, thanks to pilot program

In an effort to address the ongoing housing shortages faced by Millbrook First Nation, a groundbreaking pilot project has been launched to empower band members to build their own homes. With the introduction of mortgages on-reserve for the first time, the Mi’kmaw band near Truro, N.S., is making strides in providing much-needed housing solutions for its community.

According to the director of housing and public works for Millbrook First Nation, there are approximately 130 individuals on a waiting list for a home. To date, the band has constructed over 30 new houses this year and is expanding its housing options to include mini homes and duplexes to meet the diverse needs of its residents. Despite these efforts, keeping up with population growth remains a significant challenge.

The mortgage pilot program, known as the on-reserve housing loan, is a collaboration between Millbrook First Nation and the Royal Bank of Canada. This initiative allows approved band members to secure mortgages of up to $250,000, with the band serving as a co-signer. In the past, First Nations individuals were unable to obtain mortgages on-reserve, making this program a significant step towards providing access to affordable housing options.

Band members can apply for the loan through RBC and receive a building lot and housing subsidy from the band. The program aims to build up to nine homes in its initial phase, with five already completed or nearing completion. As the community continues to grow, the demand for housing remains high, making initiatives like the on-reserve housing loan crucial in addressing the housing crisis.

Chinyere Eni, the head of RBC Origins, highlighted the importance of addressing housing issues on-reserve, citing overcrowding and housing disrepair as prevalent issues in Indigenous communities across Canada. The program, which was launched on Millbrook First Nation two years ago, has since been adopted by over 100 First Nations nationwide, demonstrating its effectiveness in providing housing solutions.

Amber Stevens, a participant in the program, shared her experience of building a home with her father and the relief of being able to secure a mortgage through the pilot project. Stevens emphasized the importance of being able to return to her home community and start a life there, showcasing the impact of the program on individuals seeking to reconnect with their roots.

Eni noted that the on-reserve mortgages require a minimal 2.5% down payment, with the option for band subsidies in some cases. The loans can be used for building, purchasing, or renovating a home, with amortization periods of up to 25 years. By respecting the sovereignty and independence of First Nations communities, the program embodies the concept of economic reconciliation.

Looking ahead, Millbrook First Nation plans to evaluate the success of the pilot program and potentially expand it in the future. With a focus on providing sustainable housing solutions for its members, the band is committed to ensuring that all individuals have access to safe and affordable housing options.