Farm mortgages for the land that works as hard as you do
Buying farmland, expanding an operation or building on rural property takes a lender who understands agriculture. With over 20 years of experience, we arrange farm mortgage and agriculture land financing across Canada, including for borrowers the banks turned down.
- Farmland purchases, buildings and improvements
- Access to Canada's top agricultural lenders
- Approvals available even with bruised credit
- Guidance on programs like CALA loan guarantees
What is a farm mortgage?
A farm mortgage is a loan designed for the purchase of farmland, the buildings associated with a farm, or other farming related investments. It can also finance improvements to an existing property or an expansion onto new land.
Like a residential mortgage, you can choose a fixed rate, where your rate and payments stay the same for the term, or a variable rate that adjusts over the life of the loan. The difference is the lender: farm mortgage lenders are specialists who understand seasonality, commodity cycles and the realities of running an agricultural business.
That is why working with a broker who knows agriculture matters. We match your operation with the lender whose products actually fit it.
What we can finance
Agricultural financing covers far more than the land itself. Here are the most common projects we arrange funding for.
Farmland purchases
Buy your first parcel or add acreage to an existing operation.
Buildings and construction
Barns, greenhouses, and equipment, feed or grain storage.
Land tiling and improvements
Drainage, clearing and upgrades that raise your land's productivity.
Solar and wind projects
Equity release to fund renewable energy on your land.
Agribusiness financing
Working capital and expansion for farm related businesses.
Refinancing and consolidation
Restructure existing farm debt into something workable.
How farm mortgages differ from residential mortgages
Agricultural mortgages are available to farmers across Canada, but they work a little differently than the mortgage on a house. Three differences matter most.
Interest rates
Farm mortgages often carry somewhat higher rates than residential loans, reflecting the specialized nature of agricultural lending. We shop lenders to keep yours competitive.
Flexibility
Farm lenders are typically more flexible than residential lenders about the realities of farming, such as seasonality, harvest timing and peak cash flow periods.
Down payment and documents
Farm loans usually require a larger down payment than a home purchase, plus additional information about the operation so the lender can assess the risk properly.
How to qualify for a farm mortgage in Canada
Because agricultural lending is specialized, preparation goes a long way. Lenders reviewing a farm mortgage application typically want to see a larger down payment than a residential purchase, a clear picture of the operation's income and expenses, and details about the land, buildings and equipment involved. Organized financial statements, tax filings and a simple business plan for the operation all strengthen your file.
Your credit matters too, but it is not the whole story. Equity in the land and the viability of the operation carry real weight, which is why we can often arrange farm financing for borrowers with a bruised credit history. Before you apply, it also helps to run rough numbers through our mortgage payment calculator so you know what a comfortable payment looks like for your operation's cash flow.
Not sure where you stand? A short call with one of our brokers will tell you what lenders will want to see for your specific farm mortgage, with no obligation.
The Canadian Agricultural Loans Act (CALA) program
The Canadian Agricultural Loans Act program is a federal loan guarantee that makes it easier for lenders to approve farm loans. Farmers can use CALA loans to establish, improve and develop farms, and agricultural co-operatives can use them to process, distribute and market farm products. We help you understand whether it fits your plans.
CALA by the numbers
Because the federal government guarantees most of a lender's potential loss, CALA loans can be easier to obtain and carry capped interest rates.
Of a net loss on an eligible loan is guaranteed to the lender by the federal government
Maximum per farm operation, available for land purchases and building construction or improvements
Maximum for all other purposes, including equipment, consolidation and refinancing
Maximum for agricultural co-operatives, with ministerial approval
Loan terms run up to 15 years for land purchases and up to 10 years for other purposes. Limits are aggregate, meaning all your CALA loans combined count toward the maximum. Provincial programs, including Ontario's farm loan guarantee initiatives, may offer additional support, and we can point you in the right direction.
Farmers and rural businesses we love to help
We value the immense contribution farmers and rural businesses make to Canada. Getting approved for agricultural financing can be challenging at a traditional bank, so we built relationships with the lenders who actually understand your world.
- High approval rate, even with a bruised credit history
- Approvals often within 24 hours through top agricultural lenders
- Flexible terms for time sensitive agricultural projects
- Private lending options when speed or credit is the hurdle
Farm mortgage services across Canada
From a small family farm to a large commercial agricultural business, our brokers can help. We arrange agricultural financing in these provinces:
$1,200,000
Recently funded in Highgate, Ontario
Farm mortgage at 80% loan to value
Trusted Canadian mortgage specialists
Average client rating across our reviews
Farm mortgage approval rate
Lenders in our network
Licensed brokerage, #13691
Farm and agricultural mortgage FAQ
What distinguishes a farm mortgage from a standard acreage mortgage?
An acreage mortgage can cover many kinds of rural land, while a farm mortgage is specifically tailored to agricultural properties and businesses. Farm mortgages account for things like farm income, seasonality and agricultural buildings, and they come from lenders who specialize in agriculture.
Can I get a loan using my land as collateral?
Yes. If you own rural land or farmland, its equity can secure financing for purchases, improvements or other needs. Talk to one of our brokers and we will review your land and goals, then match you with the right lender and structure.
Are land loans for farmers only?
No. Anyone who owns or is buying rural property can benefit from agricultural style financing. Whether the purpose is farming, agribusiness or a related rural use, we can help you find the loan that fits your situation.
How much down payment do I need for a farm mortgage?
Farm mortgages typically require a larger down payment than residential mortgages, and the exact amount depends on the lender, the property and the operation. Strong equity, a clear plan and organized financials all help you qualify for more.
What is the CALA program?
The Canadian Agricultural Loans Act program is a federal loan guarantee that helps farmers and agricultural co-operatives access financing. The government guarantees 95% of a lender's net loss on an eligible loan, with limits of $500,000 per farm operation for land and buildings, $350,000 for other purposes, and up to $3 million for co-operatives with ministerial approval.
What interest rates do farm mortgages have?
Farm mortgage rates are typically a little higher than residential rates because agricultural lending is specialized, and your rate depends on the lender, the property, your equity and the strength of the operation. Loans backed by the CALA program have capped rates set relative to the lender's prime or residential rates. We shop multiple agricultural lenders to keep your farm mortgage rate competitive.
Can I get farm financing with bad credit?
Often yes. We work with agricultural, alternative and private lenders who consider the whole picture, including your land equity and the strength of your operation, not just your credit score. We also offer credit repair to help you qualify for better terms over time.
Your new farmland is waiting for you
Ready to buy, build or expand? Call us or apply online and an experienced agricultural mortgage broker will walk you through your options, with no obligation.