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 confirmed 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.

Program Description

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 confirmed complete citizenship files. The MNO contribution will be the lesser of 15% of the purchase price of the home or 15% of the average market value threshold by municipality/district that the MNO Citizen purchases in. The MNO down payment contribution will not exceed 15% of this threshold, regardless if the Citizen wishes to purchase above the threshold. 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 an HBC Financial Specialist. 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 (Meridian Credit Union, RBC, Scotiabank). 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.

Eligibility Criteria  

To be eligible for this program, applicants 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 meet the following criteria to be considered a first-time home buyer
    • Must not currently own or have legal interest in any properties
    • Must not have occupied a home that either they or their current
      spouse/common-law partner owned in the last 4 years
      • The Primary Applicant pay be eligible if they have lost their home due to the dissolution of a marriage or common-law partnership
  • Primary Applicant must be a permanent full-time resident of Ontario purchasing a home in Ontario
  • Primary Applicant must be able to qualify for and obtain a mortgage from one of the MNO Preferred Lenders (Scotiabank, RBC, Meridian Credit Union) with a minimum* personal down payment from traditional sources**
  • Primary Applicant must provide proof of minimum 5% down payment from traditional sources, which include personal savings, investments, RRSPs, FHSA, and/or non-repayable gifts from an immediate family member
  • Primary Applicant must qualify for a pre-approved mortgage from one of MNO’s preferred lenders. The MNO’s preferred lenders include Royal Bank of Canada, Scotia Bank, and Meridian Credit Union.
  • Primary Applicant must secure a property within 90 days from the date they are conditionally approved for the MNO HBC Program
  • Primary Applicant must not have received previous funding from the HBC program.
  • The subject property must be an eligible property. It must be used for residential and single owner-occupied purposes with no rental capacity. The following home styles are eligible:
    • Single detached home
    • Semi-detached home
    • Townhouses/Row Housing
    • Condominiums

*Minimum down payment is 5% for the first $500k of the purchase price plus 10% down payment is required on amounts over $500k but under $1M. Minimum down
payment required on homes over $1M is 20% of the purchase price.

**Traditional sources include personal savings/investments, RRSPs, FHSAs, and/or gifts from immediate family members

Eligible Property Types: 

  • Single-detached homes – this is a standalone home on its own piece of property
  • Semi-detached homes – this is one of two houses that share a common wall. Each house has its own entrance, living area, kitchen, and bedroom(s).
  • Townhouses/row houses – row houses are lined up all in a row, sharing either one or two walls with neighbours. Townhouses are similar, but typically have 3 or more stories.
  • Condominiums – also known as a ‘condo’, these homes are individually owned residential units in a building or complex comprised of other residential units

The purchase of a lot and the construction of a single detached home by a Métis household is not eligible for the HBC Program at this time.

The purchase of a multi-unit home is not eligible for the HBC Program at this time, even if the citizen intends to occupy one of the units.

How to Apply 

STEP 1: Review the program FAQ 
We’ve answered many of the frequently asked questions about the Program and ask that all applicants review these questions and answers before proceeding. 
 
This checklist will help you prepare for a mortgage application.
 
STEP 3: Apply to the Program
You can apply to the Program using the online application portal below. 
 
Apply Here

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 Costs, including land transfer tax, legal fees and disbursements for both the first and second mortgage registrations
  • Home Inspection Costs (if applicable)
  • Appraisal Costs (as required)
  • Any costs relating to the settlement and advancing funds as determined by the MNO

Loan Repayment:

  • 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 or fair market value of the home (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.

Loan Security

  • A mortgage loan agreement and promissory note 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.

Stacking Provisions

  • MNO HBC Program does not restrict stacking or layering of other programs as long as the terms and conditions of the MNO HBC Program are met. Please note: other programs, such as the MNO Emergency Repair Program, may have restrictions in place that impact applicants’ ability to stack such programs (i.e. requirement for a home inspection that confirms no known issues related to the reason for the application at time of purchase).
  • The HBC cannot be applied retroactively for borrowers who have already purchased a property before applying and receiving conditional approval from MNO.

Other Conditions:

  • 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)

For those needing assistance with the application please contact our team below.

CONTACT:

For more information about the MNO’s Housing Program please contact the Housing and Infrastructure Branch at (705) 722-5022 x 302 OR email: housingprograms@metisnation.org.