As part of its commitment to improving access to on-reserve home ownership, the First Nations Market Housing Fund (FNMHF or the Fund) leverages its expertise and institutional credibility to advocate for other Indigenous-led solutions to the housing crisis in Indigenous communities across Canada. A Memorandum of Understanding (MOU) with Yänonhchia’ Housing Finance (Yänonhchia’) formalized its support for a new and innovative path to homeownership.
In 2026, the Fund joined the Assembly of First Nations (AFN), the Aboriginal Savings Corporation of Canada (ABSCAN), and the National Aboriginal Capital Corporation Association (NACCA) in backing the Yänonhchia’ submission to the Government of Canada. This blog outlines why funding its establishment, investing in the fund, and committing five years of funding are effective and sound solutions for overcoming on-reserve housing barriers embedded in the Indian Act.
Section 89(1) and housing on Crown Land
Because most reserve lands are technically Crown Land, traditional mortgages can’t be secured on reserve. The lender can’t take (seize) the land as collateral if the buyer stops paying the mortgage. Section 89(1) of the Indian Act also outlines that on-reserve property can’t be used as loan security. If a First Nations band member had the money on hand to build a home and pay for associated costs, well, wouldn’t that be nice?
Current solutions
Getting a specialized bank loan, a loan from a regional Indigenous lender, or a loan from their nation through FNMHF, is an option for First Nations people who don’t have enough capital to build a home. The Fund has built relationships with select lenders and works with the First Nation clients to find a good match for their Nation. The Fund secures the loans, meaning that lenders can collect from them. They never have.
Indigenous homeowners are repaying their loans
The First Nations Market Housing Fund has backed 589 loans and, to date, has not paid any claims to lenders. The story is the same in Québec, where the Aboriginal Savings Corporation of Canada (ABSCAN) has shown that Indigenous organizations can leverage strong financial models to address the housing crisis. Investing $28 million from First Nations bonds and private capital, ABSCAN have financed 300 homes. This is without guarantees from individual First Nations or other bodies. They have no recorded loan losses.
At-home leadership
The Chief of Kebaowek First Nation couldn’t see all the way to the headquarters of ABSCAN in Wendake from his home in the Témiscamingue region. However, their groundbreaking work was undeniably important to his efforts to achieve housing access for First Nations people. Since 2012, ABSCAN has been providing housing loans to First Nations in Québec that do not have pre-existing housing markets.
Chief Lance Haymond is an expert on his community’s housing needs, serving as elected chief since 2015. He holds regional portfolios as the chief responsible for the Housing and Infrastructure file for the Assembly of First Nations of Quebec-Labrador (AFNQL) and national knowledge as Co-chair of the national Chief Committee on Housing and Infrastructure (CCoHI) at the Assembly of First Nations. Chief Haymond is familiar with coordinated Crown and government efforts from his many years as Manager of Aboriginal On Reserve Housing Programs for Canada Mortgage and Housing Corporation (CMHC).
The ABSCAN track record provides the foundation for national impact that Yänonhchia’ is poised to achieve. It was Haymond who, as Executive Director of the organization, signed the 2024 MOU that pledged to share resources and expertise with the FNMHF.
A national scale for proven approaches
Where federal approaches have failed, Yänonhchia’ intends to build on the success of many First Nations offering self-directed solutions. Their approach is to provide mortgage-like financing through Indigenous Financial Institutions (IFIs). IFIs are 52 Indigenous-controlled, community-based financial organizations that understand the needs of their regions and are experts in reducing risk for lenders and homeowners.
Yänonhchia’ will manage a capital facility that determines underwriting policies, procedures, loan management, and financial statements that meet international standards. They’re hoping to start with a test group of six IFIs who will manage the loan requests and undertake housing ecosystem modernization.
Most loans are based on collateral instead of ability to repay. This has been a primary obstacle to keeping First Nations people from building individual wealth through owning our homes. Embracing affordability‑tested lending lets the lender borrow based on income.
Government-backed loans have been hard to access because of programming cycles and limited pots of money. They also lack a regional lens that recognizes household income patterns and seasonal employment.
The IFIs already understand these patterns and the many supportive obligations of community members. Loans that wait longer mean payment structures that households can manage with savvy financial planning. The Yänonhchia’ Housing Finance model puts the development, application, and maintenance of national standards, while the IFIs support borrowers with the tools to succeed.
Built on Indigenous wealth
Yänonhchia’ (yah-NON-shee-ya), the Huron-Wendat term for “home,” expresses the organic connection between family space, community life, and territory. Their ability to navigate between private, communal, and environmental interests offers potential First Nations homeowners another pathway to achieving their dreams.
Their plan employs Indigenous underwriting expertise, guided by international standards, to create credibility. This model is transparent, building both accountability and transparency.
Yänonhchia’ will activate Indigenous capital, in the form of bonds, to enrich First Nations investors. ABSCAN tested their model with a combination of First Nations savings, a CMHC Innovation Fund investment, and Ministerial Loan Guarantee (MLG)-backed commercial loan. By 2022, they no longer needed MLG backing, which is only accessible to First Nations meeting rigorous financial assessments of good health.
An investment in sustained self-reliance
Similar to how ABSCAN shed their reliance on federal funds through a successful track record, Yänonhchia’ needs to prove its model to attract investments. Yänonhchia’ is asking the Government of Canada for large seed investments that will show potential investors that the model works at a national scale.
The $150 million investment would fund the initial work with six IFIs, scaling up to national reach with another cash injection of $350 million.They estimate that they can generate ~$5.8 billion in housing loans in 20 years with these government funds.
A For Indigenous, by Indigenous solution
Since the government drained the Indian Land Management Fund (ILMF) to fund its administration in 1858, First Nations have paid the price for one-size-fits-all federal programs that employ public servants and fail to make lasting change.
Building on the success of First Nations visionaries and highly adept financial minds, the Yänonhchia’ Housing Finance model shows that our people have the tools to overcome the challenges to our wellbeing. Backed by the FNMHF and other First Nations partners, Yänonhchia’ offers a structure for long-term housing capital that’s sustained by our own people’s success.