Alternative Financing for Indigenous Housing

PDF - Report

Indigenous Peoples and groups often face systemic barriers and challenges when accessing financing for housing. Difficulties obtaining financing hinders chances of homeownership and the development of affordable housing in Indigenous and northern communities. This Research Insight provides a summary of an environmental scan we commissioned that further examined these challenges and barriers.

The research revealed 4 challenges that affect Indigenous Peoples and groups from finding appropriate and accessible financing programs for housing development:

land tenure,
economic development,
credit history and
intersectionality challenges.

These elements combined, raise challenges for Indigenous governments and organizations tasked with providing safe, adequate, suitable and affordable housing. To bypass these challenges, the research also identified 4 innovative approaches that could be implemented by Indigenous governments and organizations. The solutions identified include:

Indigenous governments can leverage leasehold interest to create innovative sources of passive income.
The development of a construction-related surety bond product would support Indigenous economic development.
Credit literacy and financial inclusion can assist Indigenous governments and individuals access credit products with mainstream lenders.
The need for additional training and economic reconciliation efforts to support individuals affected from an intersectional lens.

At CMHC, we are committed to preserving and increasing access to housing for Indigenous Peoples no matter where they live. Our goal with the National Housing Strategy is to ensure Canadians across the country have access to affordable housing that meets their needs and this includes doing our part to advance reconciliation and help build a better future with Indigenous Peoples.