Ministerial Loan Guarantee
Indigenous RightsA federal guarantee that backs loans for on-reserve housing when land cannot be used as collateral (because reserve land cannot be seized under Section 89). Without this guarantee, most banks will not lend for on-reserve homes. Your band council must pass a BCR to support the application.
Related terms
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Band council resolution (BCR)
A formal decision passed by an elected band council, similar to a bylaw. BCRs are often required for housing loans on-reserve, land designations, and accessing certain federal programs. If you are applying for on-reserve financing, expect to need a BCR.
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Section 89 (property seizure protection)
The section of the Indian Act that protects the real and personal property of a Status Indian situated on a reserve from seizure by non-Indigenous creditors. This is why standard mortgages do not work on-reserve — the lender cannot foreclose. It protects you, but it also limits access to certain financial products.
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Mortgage
A loan specifically for buying property, where the property itself serves as collateral. In Canada, mortgages typically have 5-year terms within a longer 25-year amortization. On-reserve, Ministerial Loan Guarantees may be required.