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

In an effort to combat persistent housing shortages, Millbrook First Nation is empowering its members to build their own homes, with the help of a pilot project that allows mortgages on-reserve for the first time. 

The Mi'kmaw band near Truro, N.S., has around 130 people on a list waiting for a home, according to its director of housing and public works. The band has built more than 30 new houses this year and is diversifying its housing stock with mini homes and duplexes to meet the community's needs. 

But even with these advances, it's an ongoing battle to keep up with population growth. This is where the mortgage pilot program fits in.

"The priority for us is to get people housing, that was our main goal here, " said Lorne Paul, the band's housing and public works director. 

Called the on-reserve housing loan, it's a partnership between Millbrook First Nation and the Royal Bank of Canada that grants a mortgage of up to $250,000 to approved band members, with the band as a co-signer. 

"Back in the day, we were not allowed to have mortgages, the bank wouldn't give First Nations people mortgages on-reserve," Paul said.

He said band members apply for the loan through RBC and receive a building lot and housing subsidy from the band. Up to nine homes will be built in the first cohort. So far, five have been completed or are nearly done, with another one set to break ground soon.

Chinyere Eni, the head of RBC Origins, the bank's Indigenous banking banner, said more than 100 First Nations across Canada have adopted RBC's on-reserve housing loan program, which was created in the 1990s. It was launched on Millbrook First Nation two years ago. 

"The program was created really because we recognized the significant socio-economic and generational impacts that persist on-reserve with housing issues," said Eni, a member of Little Pine First Nation in Saskatchewan.

Eni referenced problems with overcrowding and housing in disrepair, citing a recent Assembly of First Nations report that found First Nations across the country "urgently need" 157,453 new homes as well as repairs to 55,700 existing ones. 

Paul said in his community, many generations of extended families often live under one roof as they wait for housing. 

"There's some big issues, it could be a lot of mental issues," he said. "Just to survive … there's a lot of stress on these members and we're trying to meet their needs today, try to help them out."

'A huge weight lifted off my shoulders'

Amber Stevens was one of the first people to apply to the program after she moved back to Millbrook from Halifax in 2021, wanting to be closer to family and more connected to her community.

She knew it could take years before a home became available, so she moved in with her dad, sister and  brother-in-law while she waited. 

At the time, her only avenue to build a home was through savings and personal loans. 

"When this program was announced, it was actually a huge weight lifted off my shoulders that I wouldn't have to just have all these high-interest loans and stuff like that. I could just have a mortgage," Stevens said. 

Stevens built the home with her father, who is a carpenter, and moved in last year. 

"It made me really proud to be able to do a lot of the work with my dad myself," she said. 

Paul said it's important for band members who have moved away to have the chance to return to their home community and start a life there if they want. He said Stevens is a good example. 

"They want to find the roots where they all belong," Paul said. "It's really good for her to come home and show … the younger generation that this can be achievable."

Part of 'economic reconciliation,' says RBC

Eni said the on-reserve mortgages require a 2.5 per cent down payment, which in some cases can be subsidized by the band, with amortization periods of up to 25 years. It can be used to build, purchase or renovate a home. 

She said the loans don't require a federal government or CMHC guarantee.

"This is exciting because it's all the First Nation chief and council, and their decision really around whether or not they'd like to develop the housing program," she said. "And not leaning on government to do so is a pretty powerful thing to respect their sovereignty and independence."

Eni said since reserve land belongs to the Crown or the First Nation, not the band member, it traditionally couldn't be pledged as collateral for housing loans. 

She said the changes that come with this program are part of the bank's "economic reconciliation."

Paul said after the first cohort's homes are built, the band will consult participants and see how it's going, hopefully expanding the program over time if it's a success. 

"That's something that we should be proud of," Paul said. "I'm very proud of it."