Specializing in Hobby Farms & Rural Property Mortgages
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Lender Network of local credit unions
Experienced in Acreage, Agricultural & Rural Mortgage Underwriting
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Your Dream Farm Awaits: Financing Your Farm or Countryside Property in 2025
What Are Farm & Rural Mortgages in Canada?
Farm and rural mortgages are specialized loans designed for purchasing or refinancing agricultural properties, rural homes, or land. Unlike traditional urban mortgages, these loans cater to the unique needs of farmers and rural property buyers, offering flexible terms and tailored financing options.
Benefits of Farm & Rural Mortgages
Tailored Financing
: Loans designed specifically for agricultural operations and rural living.
Government Support
: Access to programs like the Canadian Agricultural Loans Act (CALA).
Flexible Terms
: Options to accommodate seasonal income or unique property needs.
Lower Competition
: Rural properties often come with more affordable price tags than urban homes.
Eligibility Requirements for Farm & Rural Mortgages
To qualify, you’ll typically need:
A minimum down payment of 20-35%.
Proof of income (e.g., farm revenue or other rural income sources).
A property appraisal to confirm land use and value.
A strong credit score (usually 650+).
Government Programs for Farm & Rural Mortgages
Canada offers several programs to support rural buyers and farmers, including:
Canadian Agricultural Loans Act (CALA)
: Provides low-interest loans for farming operations.
Provincial Grants
: Many provinces offer incentives for rural development and agriculture.
First-Time Home Buyer Incentive
: Available for rural properties under certain conditions.
How to Apply for a Farm & Rural Mortgage
Find a Lender
: Work with a mortgage broker or lender experienced in rural properties.
Prepare Documents
: Gather proof of income, property details, and land use plans.
Get an Appraisal
: Ensure the property meets lender and government standards.
Submit Your Application
: Provide all required documents and wait for approval.
5 Year - Fixed Term from
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Everyone's rate is unique.What's yours?
It is our job to get your lowest possible rate. Your rate qualification depends on certain factors, such as credit score and home equity as per regulations.
*Advertised rates may not be offered by this lender. Mortgage lender offers are aggregated by RateShop & its Brokerage Network subject to change without notice. Speak with our mortgage broker about APR and qualification requirements.
Challenges of Financing Rural Properties
Higher Down Payments
: Rural properties often require larger down payments than urban homes.
Appraisal Difficulties
: Valuing remote or unique properties can be complex.
Limited Lender Options
: Not all lenders offer loans for rural or agricultural properties.
Farm & Rural Mortgage Rates: What to Expect
Interest rates for rural mortgages may be slightly higher than urban rates due to perceived risk. However, government programs and specialized lenders can help you secure competitive Canada mortgage lending rates.
Tips for First-Time Farm Buyers
Research Incentives
: Explore government grants and programs for first-time buyers.
Work with Experts
: Partner with a mortgage broker who understands rural properties.
Plan for the Long Term
: Consider the costs of maintaining a farm or rural property.
FAQs About Farm & Rural Mortgages in Canada
Can I get a mortgage for a hobby farm?
Yes, but lenders may require proof of income and a detailed land use plan.
What’s the minimum down payment for a rural property?
Typically 20-35%, depending on the property type and location.
Are there special loans for agricultural equipment?
Yes, programs like CALA can help finance equipment purchases.
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6 Indell Lane, Brampton ON L6T 3Y3, Canada
Local: 416-827-2626
Toll: 800-725-9946
RateShop Inc. is a Mortgage Brokerage offering lowest mortgage rates to Canadians. We are provincially licensed in the following provinces: Mortgage Brokerage Ontario FSRA #12733, British Columbia BCFSA #MB600776, Alberta RECA #00523056P, Saskatchewan FCAA #00511126, PEI #160622, New Brunswick FCNB #88426, Newfoundland/Labrador. Our Quebec Mortgage Transactions are serviced by Orbis Mortgage Group AMF# 181136.
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