On-reserve
Indigenous RightsLiving or working on land designated as a reserve under the Indian Act. Your location matters for finances because it affects tax exemptions (Section 87), access to housing programs (Ministerial Loan Guarantees), and property protections (Section 89).
Read more about this →Related terms
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Section 87
The section of the Indian Act that exempts the personal property of a Status Indian situated on a reserve from taxation. In practice, this can apply to employment income, investment income, and purchases — but only when specific conditions (the connecting factors test) are met. It does not mean all income is automatically tax-free.
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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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Ministerial Loan Guarantee
A 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.