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GNWT expands options for mortgage debt forgiveness
Along with the new forgiveness criteria, Housing NWT is offering to work with homeowners to find alternate solutions in paying off their mortgages
The GNWT has announced that they will now be more forgiving of debts with Housing NWT’s legacy mortgage program.
Going forward, residents living with Housing NWT mortgages can have their debts forgiven if they meet one of these new criteria:
- They are experiencing severe financial challenges, and have income below the Core Need Income Threshold
- They have paid more than the assessed value of the property, or
- They have paid an amount equal to or greater than the original mortgage principal.
An additional criterion for debt forgiveness is that residents must live in the home that is tied to the mortgage, though this condition may be waived in special circumstances.
Jane Weyallon Armstrong, a Member of the Legislative Assembly for the Monfwi Riding, was elated to learn of the news.
“For many years, I have brought forward the concerns of Elders, families, and homeowners who were struggling with legacy mortgages and the confusion and hardship it created. I have heard from people who did not fully understand the agreements they signed decades ago and who have carried these debts ever since.
“I am pleased to see the GNWT respond to these long‑standing calls for change by expanding the criteria for debt forgiveness. This is a meaningful step toward resolving historical issues, providing people with stability, and allowing Housing NWT to focus on delivering more effective supports.”
Furthermore, Housing NWT is open to working with residents who are struggling to meet the conditions for debt forgiveness. They are willing to help explore other options to reduce mortgage debt.
Lucy Kuptana, the Minister Responsible for Housing NWT, shared her own comments on the new criteria.
“By expanding options for mortgage forgiveness, we are providing meaningful financial relief to residents and responding directly to the issues raised by MLAs and communities. This change in approach to debt forgiveness allows us to support those who are struggling while also recognizing those who have met their repayment obligations, demonstrating our commitment to fairness, transparency, healing and supporting residents in need.
“I am proud to be responding to community calls for change in a way that promotes dignity, fairness, and responsible program modernization. This will help people move forward with greater stability in their homes, and allow this government to focus on delivering more homes for Northerners.”
Residents who have mortgages with Housing NWT can expect to receive a letter later this month that will encourage them to meet with their District Office to discuss their options.
