The Métis Nation of Ontario (MNO) Home Buyers Contribution (HBC) Program will contribute to the down payment of eligible first-time homebuyers who are MNO citizens with complete citizenship files. The program aims to substantially increase the overall down payment and reduce the overall carrying costs of purchasing a home. The MNO contribution is a no-payment loan registered on title as a shared equity mortgage behind the first mortgage. While no payments of interest or principle are required while the citizen owns the home, the loan must be paid back when the citizen sells or no longer occupies the property.
The Home Buyers Contribution (HBC) Program will provide up to 15% of the home’s purchase price in the form of a second mortgage to First Time Home Buyers who are eligible MNO Citizens with complete citizenship files. The MNO – HBC Program is structured as a second-ranking mortgage, which will be registered immediately following the first mortgage.
Personal financial assistance to Métis applicants will be provided by a Financial Literacy Coordinator. The Financial Literacy Program builds financial knowledge by helping Métis Citizens understand and prepare for the path to homeownership. Information on the home buying process, qualifying for a mortgage, credit scoring, and more can be provided. The Branch staff will work one-on-one with MNO First Time Home Buyers to assist them in reaching their housing financial goals and support them during their home buying journey.
Approved applications are assessed on a first come first served basis. Successful approved applications will receive an MNO conditional loan offer. They will then need to obtain a pre-approved mortgage with a financial institution partnered with the MNO. These financial institutions will treat the MNO HBC loan as equity when applying their standard residential mortgage underwriting criteria. MNO’s agreement with these financial partners ensures there is sufficient loan to value to accommodate the HBC loan on title.
The Primary Applicant must meet the following criteria:
- Primary Applicant must be a Citizen of the Métis Nation of Ontario with a complete citizenship file.
- Primary Applicant must be 18+ years.
- Primary Applicant must be a first-time home buyer.
- The Primary Applicant is eligible if they have lost their house due to the dissolution of a marriage or common-law partnership.
- Primary Applicant must not have occupied a home that either they or their current spouse or common-law partner owned in the last four years.
- Primary Applicant must be a permanent full-time resident of Ontario.
- Primary Applicant must provide proof of minimum 5% down payment from traditional sources*.
- Primary Applicant must qualify for a pre-approved mortgage from one of MNO’s approved lenders.
- Primary Applicant must secure a property within 90 days of qualifying for a mortgage from a bank or credit union.
- Primary Applicant must not have received previous funding from the HBC program.
- Primary Applicant must not have Investment properties, secondary/vacation properties. Properties intended for commercial/non-residential use are not eligible.
* Traditional sources of income include personal savings, investments, RRSPs, and/or non-repayable gifts from an immediate family member.
Eligible Properties Include:
- Single-detached homes – A single detached home is a standalone home on its own piece of property.
- Semi-detached homes – A semi-detached home is one of two houses that share a common wall. Each house has its own entrance, living area, kitchen, and bedrooms.
- Townhouses/row houses – Row houses are lined up all in a row, while townhouses are often configured differently.
- Condos – A condo, short for condominium, is an individually owned residential unit in a building or complex comprised of other residential units
How to Apply
Occupancy of the property as the borrowers’ primary residence is required.
• Investment properties, secondary/vacation properties, and properties intended for commercial/non-residential use are not eligible.
• The property must be located in Ontario and must be suitable and available for full-time, year-round occupancy.
The Primary applicant is responsible for the following:
• Closing Legal Costs, including land transfer cost and title of second mortgage cost
• Home Inspection/Approval Cost
• Appraisal Costs (as required)
• Any costs relating to the settlement and advancing funds as determined by the MNO
• No payments of interest or principal are required on the MNO – HBC Program until the purchaser decides to sell the home.
• Refinancing the first mortgage will not trigger repayment to the mortgage loan agreement unless the principal amount is increased.
• The borrower can repay the contribution in full at any time, without a pre-payment penalty.
• In case of sale of the property, if HBC contribution was 15% of the original purchase price, then 15% of the resale value of the home, or 15% of fair market value, whichever is greater, is repaid to the MNO.
• In the case of early voluntary repayment, the HBC repayment amount will be determined using the fair market value of the property.
• Death of the primary homeowner(s): If the loan still exists and if the Trustee inherits the property and is not a primary resident and/or sells the property, repayment of the MNO HBC contribution is triggered.
• Repayment is triggered if the primary homeowner(s), rent or transfer the unit; and/or the home ceases to be the sole and principal residence of the homeowner(s) or the homeowner declares bankruptcy or the homeowner provides fraudulent or misleading information in the original application.
• A mortgage loan agreement will be signed between the MNO and the borrower, specifying the loan’s terms and conditions. The HBC Program will be registered on the property title as a second mortgage.
• MNO-HBC does not restrict stacking or layering of other programs as long as the terms and conditions of the MNO-HBC Program are met.
• The HBC cannot be applied retroactively for borrowers who have already purchased a property before submitting an application and receiving conditional approval from MNO.
• The Primary Applicant must maintain property insurance for 100% of the full replacement cost of building(s) with coverage against the perils of fire and other standard insurable perils with MNO listed as the loss payee.
• The Primary applicant must maintain the 1st mortgage in good standing (no arrears).
• The Primary applicant must maintain all property taxes in good standing (no arrears).