Mortgages on agricultural land and on properties where either commercial or even hobby farming operations are ongoing, can be very difficult to arrange. Most traditional mortgage lenders are unable to finance homes with acreage in excess of 10 acres, and will not consider these properties if any farming activity is ongoing.
Farm mortgage loans are often used to help fund the expansion of commercial farming operations, generate funds for construction financing or land improvements, and even debt consolidation and credit repair loans are available nationwide.
When considering making an application for a farm mortgage, it is critical that that any financial statements to be used as additional income support are well prepared in advance and are up to date. Most farm loans are qualified based on income available through personal and corporate sources, though some financing options may be available based on an equity basis only.
For those operations presently operating under duress, but with extensive equity in their land or equipment, CMI is able to arrange for asset based equipment and real estate loans to help re-organize debt and provide working capital to ride out tough times.
Many farm loans and financing packages can include financing not just for land, but also equipment as well as livestock. For operations serving corporate buyers, accounts receivable financing may also be available for farming operations.
Financing is available for existing operators, as well as new owners, provided that the necessary experience to successfully manage and/or operate the farm is demonstrated. All applications must be of legal age, and should be Canadian citizens (though some exceptions can be made, especially for larger farming operations).
Canadian Mortgages Inc. is able to help provide farmers and agricultural business operations the necessary farm mortgage and farm loan business capital to successfully thrive and prosper. Our capabilities span the entire country, with financing available for any sized operation and financing options ranging from variable and fixed rate mortgages, through credit lines and equipment leasing.
Financing is available on many properties up to 75 and 80% of the total assessed value, and loan qualifications can be considered on a combination basis of equity and unsecured financing provided that the guarantorâ€™s credit and the available income are substantial.
Farm mortgage loans are also available for agricultural related industries and operations, including equestrian training facilities, and other such niche markets.
Contact Canada’s mortgage experts today for a complimentary consultation on your farm mortgage. Call Us Today at 1 888 465-1432.