CMHC Mortgage Insurance is once again available for residential mortgages on reserve lands
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 9, 2013) - After two years of hard work and negotiation, the Van Maren Group of Companies, the developer for The Cottages on Osoyoos Lake, is pleased to announce that purchasers are once again able to obtain mortgage insurance from CMHC for residential properties on reserve lands across Canada.
An amendment to the standard form of 99-year lease which came into effect in June, removes the potential for severe and wide-ranging implications to First Nations and their members, by ensuring that developers will continue to build residential projects on reserves, with the knowledge that their purchasers are able to obtain high ratio financing with CMHC insurance. Prior to the approval of the lease amendment, development on First Nations' land was handicapped by the lack of CHMC insurance; an issue placing a sweeping impact on the value of First Nations' land all across Canada.
Chris Scott, the former C.O.O. of the Osoyoos Indian Band Development Corporation and now advisor to a number of Bands including the Penticton and Osoyoos Indian Bands, also played a significant role in the process, briefing the key parties from within the Indian bands and ensuring they were involved in the discussions towards reaching this amendment. Chris shares, "First Nations sit on an exceptional land base, but unfortunately, without CMHC mortgage insurance not enough developers could look at First Nations land as accessible - causing an impediment of such significance that the impact on developing on these lands was huge."
"This amendment is a result of like minds coming together, resolving this issue, and giving First Nations a chance to have a share of the national economy. The resolution serves as the tipping point to bringing awareness to our land base and encouraging developers across the nation to consider developing residential and commercial properties on First Nations desirable land," adds Scott.
The problem came to rise when until recently, CMHC routinely provided mortgage insurance to buyers of residential property on reserve land; however, approximately 18 months ago, CMHC amended their policy on leases to insist upon a lease clause that AANDC would not permit. Without CMHC insurance, many lenders are reluctant to provide financing to buyers who require high ratio financing for homes under Department of Indian Affairs (AANDC) land leases.
Developer Eric Van Maren, co-founder of The Van Maren Group of Companies, took personal responsibility for the organization and lobbying towards achieving this change in policy. After seeing the harmful effects the lack of CMHC mortgage insurance was having on his own development, The Cottages on Osoyoos Lake - a residential development built on Osoyoos Lake, on land that's part of the Osoyoos Indian Band territory - Van Maren took the initiative to push AANDC and CMHC to come to a resolution.
Contacting the directors at AANDC and CMHC, Van Maren addressed the serious implications the issue was placing on First Nations, developers, and leaseholders, to rally support to amend the policy. Van Maren stressed that a quick resolution was needed, as the lack of CMHC mortgage insurance would impact all residential developments on reserve lands across Canada.
Van Maren shares, "We've worked on three or four reserve projects before and have seen first hand the value we can create for buyers, as well as the financial independence and business opportunity it provides to First Nations members and communities on reserve land. We could see that change was needed to prevent stunting the growth of residential development on Native Land, so we made it a priority to work with both parties to remove this impediment."
"We're happy to say that with our determination to help streamline and facilitate the economies of First Nations land, that a solution has been reached that all parties are happy with - enabling the ability to grant buyers with mortgage insurance for all leasehold properties across Canada," adds Van Maren.
With the new mortgage policy in place, Van Maren expects to see an increase in sales at his popular development, The Cottages on Osoyoos Lake.
About The Cottages On Osoyoos Lake:
The Cottages on Osoyoos Lake is a spectacular gated lakefront community of detached homes ranging in price from the low $300's to over $1-million. The 70-acre property sits in the heart of wine country, near some of the region's best known wineries such as Black Hills and Burrowing Owl. The project has 1,800' of waterfront, over 500' of sandy beach, two swimming pools, a 7,000 sq. ft. clubhouse, 20 acres of green-space for all to enjoy, boat slips, walking trails, and many other amenities. Many different standard floor plans are available, and all homes can be fully customized. For more information visit www.OsoyoosCottages.com or call 1-855-742-5555.