The NWT government says it will make the process easier for residents with legacy mortgages through Housing NWT to have remaining debt forgiven.
Homeowners may qualify for full forgiveness of their remaining mortgage balance if they meet one of the following criteria:
- their income is below the territorial Core Need Income Threshold;
- they have paid more than the assessed value of their home; or
- they have paid an amount equal to or greater than the original mortgage principal.
According to a Monday news release, residents must be living in the home connected to the mortgage to qualify for forgiveness. (This requirement may be waived in certain extenuating circumstances, like if the homeowner is temporarily away for medical treatment.)
“If a client does not qualify for debt forgiveness, they can work with Housing NWT to explore other options to reduce their mortgage debt, including an option for zero-percent interest on future mortgage payments,” the GNWT stated.
“Staff will be able to support clients with the application process and are receiving training to ensure the new criteria is consistently applied.”
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The GNWT said all Housing NWT mortgage holders will receive a letter in March inviting them to meet with their local district office to review the program and discuss their individual situation.
Monfwi MLA had pursued issue
Housing minister Lucy Kuptana said changes to the program come after years of concerns raised by residents about the financial strain some homeowners continue to face.
“These mortgages were created under programs that were designed quite a while ago, many years ago,” she said at a press conference.
“Housing NWT and the GNWT are committed to addressing concerns – promoting dignity and self-sufficiency, and directing resources to support residents who need it the most.
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“Our goal is to support residents who are facing genuine financial hardship, while also recognizing the northerners who have made significant steady payments towards their home. This is about balance, fairness and making sure people can move forward with stability.”
Kuptana acknowledged the work of Monfwi MLA Jane Weyallon Armstrong, who has spent years advocating for debt forgiveness for Elders.
Armstrong said the program’s expanded criteria helps families with housing challenges and also recognizes the role communities play in decision-making, which she called an important step toward truth and reconciliation.
“No longer will people living on low income have to worry about choosing between paying their mortgages and buying food,” she said, adding that in the Tłı̨chǫ region the value of outstanding Housing NWT mortgages is currently $3.7 million.
Across the territory, Kuptana said, there are 193 legacy mortgage files dating back to the 2000s.
The minister said 43 homes in the Monfwi district have reported experiencing hardship while trying to pay their mortgage down, though the GNWT asserted after this article was first published that 43 is the overall number with legacy mortgages, and those households await assessment regarding their level of hardship.
