N.W.T. gov’t to forgive mortgage debt for some homeowners | CBC News
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People holding decades-old mortgages through Housing N.W.T. may now be eligible for debt forgiveness from the territorial government.
On Monday, Housing Minister Lucy Kuptana announced Housing N.W.T. was expanding its debt forgiveness criteria for “legacy” mortgages to help residents across the territory who are struggling to pay them off.
These legacy mortgages were offered to the territory’s residents from the early 1990s to 2007, after which residents began applying for mortgages through more traditional lenders like banks.
Across the N.W.T.’s 33 communities, there are currently 193 homeowners who owe Housing N.W.T. a total of $15.3 million.
“By taking the new approach to debt forgiveness we are reinforcing our commitment to a system that is fair and transparent,” Kuptana told reporters on Monday.
“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.”
To qualify for the debt forgiveness, homeowners must live in the mortgaged house, although that condition may be waived in certain circumstances — for example, if the owner is away for medical reasons.
Those applying for the debt forgiveness must also meet one of the following criteria: they face financial challenges, they’ve paid more than their house’s current value or they have already paid the original cost of the house.
Monfwi MLA Jane Weyallon Armstrong said she was happy with the government’s announcement on Monday and said that many northerners would be breathing a sigh of relief.
“No longer will people living on low income have to worry about choosing between paying their mortgages and buying food,” she said.
Kuptana said homeowners who do not meet the criteria for loan forgiveness can get zero per cent interest on future mortgage payments.
“For many families, this can make [a real] and meaningful difference,” she said.
Kuptana said that staff training for the district offices still needs to be completed to ensure that the debt criteria is consistently met.