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A FINANCING SOLUTION BUILT FOR TIME-SENSITIVE LAND OPPORTUNITIES

Glengarry's Auction & Tender Purchase Financing helps farmers secure the funds they need to compete for land purchased through auctions and tender processes. Our experienced agricultural lending team works quickly to understand your opportunity and provide a financing solution designed around the realities of farming.

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This program is best suited to established operators with strong financials who are ready to move quickly on a land opportunity. Because auction and tender timelines move fast, so do we. Our team works to assess your situation and provide clarity on financing before your window of opportunity closes.

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Because this timeline calls for speed and dedicated resources on our end, a non-refundable commitment fee applies to begin the process. We like to be upfront about this from the start, so there are no surprises as you move forward with your purchase.

WHY FINANCE THROUGH GLENGARRY
TRADITIONAL FINANCING
GLENGARRY
Opportunities to buy land are passing you by
Bid confidently
No certainty if and when you qualify
Financing commitment upfront, approved in 7 days or less
No preapproval available prior to the auction for most farmers
Financing approval before bidding
HOW IT WORKS

The Auction & Tender Loan process is designed to give you a financing decision before you participate in the auction or submit your tender.

Pre-screening — A quick online questionnaire confirms you and the opportunity meet the basic requirements before moving forward.

Application & underwriting — Submit your application, supporting documents, and due diligence fee. Glengarry reviews your financial position, credit, debt, down payment, assets, and the property under consideration.

A decision before you bid — If approved, Glengarry issues a financing offer outlining your maximum bid and loan amount, as well as terms that must be met, so you know your limits going in. 

You bid with confidence — Participate in the auction or submit your tender knowing your financing is already in place. 

Within 48 hours of successful bid— You pay all deposits, arrange a Glengarry-approved appraisal, and submit all required documentation.

Funds advanced at closing — The loan closes and funds are advanced on the purchase closing date, just like a standard purchase financing loan. 

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Important: Glengarry does not advance funds for the auction/tender deposit or at any point prior to purchase closing. 

Image by Earl McKenzie
farm auction loan
HOW TO APPLY

Ready to get started? Follow our simple application process: 

1.

Review eligibility requirements and application instructions.

2.

Complete the prescreening questions using the link below. Here you'll submit your auction or tender details for review.

3.

A Glengarry team member will confirm whether the lending criteria has been met. Once approved to proceed, you will be provided with a link to complete the application form. 

4.

Submit your completed application, due diligence fee, and supporting documents.  

5.

Our team will review your request and connect with you on next steps.  

OUR PROCESS

Click the link below to fill out our simple contact form or get in touch with one of our Relationship Managers directly. We will respond quickly to discuss your needs and see if we can help you achieve your financial goals.

OUR PROCESS

Provide us with your financial statements so we can gain a deeper understanding of your business. After review, your Glengarry Relationship Manager may meet you on your farm and assess your property.

OUR PROCESS

A Discussion Paper or "Term Sheet" will be presented to you outlining a proposed mortgage with terms and conditions.

OUR PROCESS

Once you accept the Term Sheet, we start the formal approval process to commit and fund the mortgage.

FREQUENTLY ASKED QUESTIONS

  • Glengarry’s Auction & Public Tender Financing is designed for farmers purchasing farmland through public auctions or sealed tenders. Unlike traditional financing, qualified applicants receive a financing commitment before they bid, giving them greater confidence when participating in competitive land sales. 

  • Auction and tender sales often move too quickly for traditional financing approvals. Our program allows qualified borrowers to obtain a financing approval before the sale, so they know how much they can confidently bid. 

  • This program is available for eligible agricultural land purchases made through: 

    • Public auctions run by approved auction companies  

    • Public tenders run by law firms or realtors 

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    The auction/tender must be selling at least $2 million worth of farm land in total. 

  • Auction & Public Tender Financing is currently available for eligible farmland purchases in Alberta and Saskatchewan. 

  • Loan amounts depend on several factors, including: 

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    • The type of sale (auction or tender)  

    • The purchase price  

    • Your available down payment  

    • Your overall financial position 

    • The appraised value of the property  

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    Each application is individually assessed to determine the maximum financing available.  This is determined in part by your appraisal value. Once your appraisal is complete, Glengarry will issue a commitment letter, subject to a minimum appraised value. Your final loan amount will be either 70% of the property's appraised value, or the maximum loan amount outlined in your financing offer, whichever is lower.

  • Applications must be submitted well in advance of the auction or tender deadline. To allow sufficient time for underwriting, a complete application and underwriting fee must be submitted at least 15 days prior to the auction date or the tender submission deadline. 

  • Yes. Borrowers must have at least $300,000 available for a down payment, which can include equity in unencumbered land, with a minimum of $100,000 coming from eligible cash sources. 

  • If you own free and clear farmland that is not mortgaged, Glengarry may allow you to leverage that equity to help fund your down payment.

     

    The percentage we can lend against your existing land will generally match the percentage of financing you're approved for on the auction purchase. For example, if you're approved for financing of up to 60% of the purchase price, we may also lend up to 60% of the fair market value of your unencumbered farmland.

     

    Please note that you will still need some cash available to cover the auction deposit and the required deposit for the Glengarry loan.

  • Since Glengarry's financing is intended to be short-term (typically under one year), an Equifax score of 680 or higher gives us greater confidence that a borrower will have access to conventional refinancing when the term ends. 

  • Auction & Public Tender Purchase financing requires Glengarry to complete its underwriting before the property is purchased. Because the loan is intended as short-term bridge financing until the borrower can refinance with a conventional lender, we assess the application with that exit in mind. 

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    We need sufficient information to understand the borrower’s ability to qualify for conventional financing and to identify any issues that could prevent or delay refinancing. Our goal is to avoid putting a borrower in higher-cost short-term financing without a realistic way out. 

  • Canada’s Anti-Money Laundering legislation requires lenders to confirm that all cash sources of a down payment come from legal and legitimate sources. This is done by reviewing copies of the account statements from the last three months. 

  • Glengarry requires three years of financial statements prepared under CSRS 4200 or ASPE 3041 because they offer a more detailed and accurate picture than tax filings alone. Since our loan is a short-term bridge, this level of detail gives us confidence that a borrower will be well-positioned to qualify for refinancing at a bank when that time comes.  

  •  To secure a first mortgage position, Glengarry requires all federal and provincial income taxes, GST/HST, payroll deductions, and property taxes to be current, with no outstanding arrears or penalties. This helps ensure a smooth path to closing, without last-minute delays or surprises. 

  • Auction purchases carry a maximum LTV of 60% because auctions can be unpredictable and bidding can push the price above a property's underlying market value. Capping financing at a percentage of the purchase price builds in a cushion against potentially inflated prices.

     

    Tender purchases carry a lower maximum LTV of 50%, reflecting the reduced price visibility in that process. 

  • The $3,000 upfront due diligence fee covers the in-depth financial and property analysis required for Glengarry to assess the application and, where approved, provide a financing offer in advance of the auction or tender. It also reflects Glengarry’s commitment to maintain the financing capacity required to fund the purchase if you are the successful bidder. 

    If Glengarry is unable to issue a financing offer, 50% of the fee will be refunded. Once a financing offer has been issued and accepted (or has not been declined at least seven days prior to the auction or tender deadline) the full $3,000 fee becomes non-refundable. 

  • If your application is approved, Glengarry will issue a financing offer that includes: 

    • Your maximum approved bid amount for each lot 

    • Your maximum loan amount available for each lot 

    • Your maximum bid and loan amount for any En-Bloc bidding process 

    • The conditions required for funding, including, but not limited to: 

    • A copy of the engagement letter for the appraisal (conducted at your own expense) 

    • The signed Purchase and Sale Agreement from the auction house or tender supervisory firm  

    • An additional deposit of 2% of the purchase price, which is paid to Glengarry’s trust account 

    • Name and contact information for the lawyer you'll use to close the land purchase 

  • If you’re the successful bidder: 

    1. You’ll pay the deposit required by the seller on the day of the auction or tender

    2. You’ll submit Glengarry’s required commitment deposit within 48 hours

    3. You’ll order an appraisal from Glengarry’s approved appraiser list

    4. We’ll issue your commitment letter and proceed toward closing

  • If you're not the successful bidder, the financing simply won't be used. However, since we have already completed the underwriting work to prepare your file and issue a financing offer, the upfront fee remains non-refundable, regardless of the outcome of the bid. 

  • If you have any questions or need clarification about how our Auction & Public Tender Purchase Financing works, please do not hesitate to reach out to us at auctionloans@glengarry.ca.

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