Fixed Farm Mortgage

By mmuise
Description:

The Fixed Farm Mortgage is a fixed rate interest loan for Nova Scotia farmers which can be used for purchasing an operational farm or additional farm land, for construction of farm buildings for livestock housing or other construction projects such as: greenhouse facilities, milking parlors, silos, manure systems, land clearing, or drainage.


Comments on Funding:

The applicant will pay a fixed rate interest and other fees, if applicable. Repayment can be amortized over any period from 1-30 years and the repayment schedule can also be tailored to fit the cash flow of a farm. The Farm Mortgage is typically secured by real property, livestock, quota, equipment and applicable guarantees.
Creditors Life Insurance is available for the full amount of the loan.

Deadline: -
Eligibility:

Applicants must be:

  • existing producers,
  • new prospective farmers.
Application Steps:

1. Applicants must complete the application form on their own, or call for a loan officer to assist or review it with them.

2. Applications are processed on the basis of a security appraisal, an assessment of the farming program and a review of the completed application form.

Documentation Needed:

Applicants must submit:
1. a completed application form;
2. a full Business Plan;
3. Cheque for Service Fee – Required for New Clients to the Board or Repeat Applications;
4. a summary of their education, training, work and farm experience, and a description of your current farm program and marketing program, if New Clients to Nova Scotia Farm Loan Board;
5. Void Cheque and EFT form to authorize payments by Pre-Authorized Debit (page 5 of Loan Application);
6. Completed Group Life Insurance Application Form for at least one applicant (contact your local office for application forms), or written confirmation of Life Insurance through a private policy assigned to the Nova Scotia Farm Loan Board.
7. Quota Information Declaration Form if applicable.
8. Specific information for each business type, as following:
a) Sole Proprietor: Last 3 years Income Tax Return & Statement of Net Worth and/or 3 years’ financial statements.
b) Joint Tenants (Spouses): Last 3 years Income Tax Return & Statement of Net Worth for each individual and/or 3 years’ financial statements.
c) Partnership: Last 3 years Income Tax Return & Statement of Net Worth for each individual and/or 3 years’ financial statements. AND Signed Copy of a Legal Partnership Agreement.
d) Incorporated Business:
i) Last 3 years, accountant prepared business financial statements,
ii) Copy of Company’s Borrowing Resolution Certified by the Registry of Joint Stocks,
iii) Copy of Signed Shareholders Agreement,
iv) Completed Company Shareholder Information Summary Form.
9. A copy of the Notice of Assessment issued by the Canada Revenue Agency;
10. Copy of two pieces of current government photo ID (birth certificate, driver’s license, etc.).

Additional documentation in case of Property Purchase:
1. Signed Agreement of Purchase and Sale;
2. Quota Exchange Results (Dairy Quota);
3. Authorization for transfer of quota;
4. Written confirmation of Property Insurance coverage with the NSFLB as the named loss payable, at time of closing.

Additional documentation in case of Construction / Development:
1. At the application stage:
a) Itemized Costs and
b) Plans / Drawings.
2. Prior to disbursement of funds:
a) Evidence of costs (invoices or receipts),
b) Copy of Building permit,
c) Location Certificate.
3. Written confirmation of Property Insurance coverage with the NSFLB as the named loss payable.

Applications are processed on the basis of a security appraisal, an assessment of the farming program and a review of the completed application form.

Other Things to Note:

No other details available.

About the author
mmuise