New Mortgage Program Opens Doors for Tk'emlups Band
New Mortgage Program Opens Doors for Tk'emlups Band
By Michele Young
Kamloops Daily News Staff Reporter
The Tk’emlups Indian Band is the first in B.C. to sign on with a federal government program that makes it faster and easier to get a mortgage.
The band has spent two years finalizing the First Nation Market Housing Fund, which allows it to guarantee a loan without the approval of the Minister of Aboriginal Affairs and Northern Development.
Scott Flamand, of Flamand Management Services, was at the reserve Wednesday to give a presentation on the fund.
In the past, it has taken aboriginals living on reserve six months to a year to get a mortgage approved. Now it’s a matter of days.
They still have to qualify like any other mortgage holder, paying five per cent down and having an adequate income and credit rating.
The biggest hurdle in the past was the guarantee — if the owner of a house built on a reserve defaulted, it got complicated.
Flamand said with the program, builders and buyers have to possess a certificate of possession. The maximum loan available is $400,000 for a mortgage to build or buy, and $100,000 to renovate.
Band councillor Evelyn Camille said there’s a huge need for housing for all First Nations. And the Tk’emlups band is one of the fastest growing in the province.
Many of the existing homes were not built to standard. Being able to get a loan for renovations will help.
“I’m hoping to work with the band to purchase a few of the market homes and then rent them to members,” she said.
Band financial accountant Monica Parker said the band’s only involvement is guaranteeing the loan with the First Nations Market Housing Fund.
Dan Rodgers, band housing manager, said the mortgage requirements are the same as they are for anyone living off reserve.
There will be limitations as to where the new homes can be built, because of where the sewer and water pipes on the reserve — and available lots.
Rodgers said once the program gets going, the band will look at multi-family housing developments as well as individual homes.
“We’re working with planning and engineering to look at a 50-lot subdivision,” he said.
There are 274 housing units on the reserve right now, and a list of 50 people applying for housing.
Band member Tim Jensen is the first to be approved for a mortgage in the program. He plans on building his own house to fit his needs.
BMO Bank of Montreal signed on with the market housing program, said Peter Aarestad, commercial banking area manager for the Kamloops-Shuswap-South Cariboo.
“We see it as a huge opportunity,” he said. “Historically, you couldn’t get a mortgage on reserve. This opens things up.”
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