DID YOU KNOW: Alternative Lending is Canada’s fastest growing source of mortgage financing with 1 in 7 residential mortgages considered alternative
MEET OUR CLIENTS
A dairy farm wants to expand and increase production.
MEET OUR CLIENTS
A cow/calf operation needs more acreage for pasturing their animals.
MEET OUR CLIENTS
A crop farmer wants to buy a neighbouring parcel.
FREQUENTLY ASKED QUESTIONS
Neither! Glengarry is Canadas first institutional private agricultural lender. As an alternative lender, our ultimate goal is to help our clients get through a tough time until they’re back to a comfortable financial position where they can get approved by A-level lenders (banks and credit unions) again.
Conventional lenders such as banks have specific criteria they use to approve or decline a mortgage. Excellent credit and strong financial history are among the factors being looked at. But what happens if you have missed payments in the past, or had a bad production year that brought your income down?
As an alternative lender, we can look past some of the things which would otherwise make a borrower too high-risk for traditional lenders. We see your farm as a whole, and focus on much more than just the bottom line or credit score. Whether you need cash out for operations, or to pay off another mortgage or loan, Glengarry has a solution for your farm that's customized to you.
We have physical offices in Alberta and Ontario, but we lend in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario and our team members will travel to you if/when needed.
We finance typical Canadian family farming-style operations which are food-based and commercial in nature. This could be a dairy, meat animal operation, grain farm, or other fruit or vegetable production. We don’t have specific restrictions on the commodity being farmed, but it does have to be large in scale and the property must be large enough for a farming operation.
On a case-by-case basis, we have occasionally done so, but only when the production is established. A greenhouse is a specialized type of operation and production history is important. Greenhouses also depreciate very quickly, and are often valued with equipment included. Since we lend chiefly on land and the strength of the operation, loan to value is often the stress point when we are evaluating a greenhouse.
At this time Glengarry does not offer equipment financing. Dealerships, banks, and credit unions all have excellent programs for equipment loans, with rates that can’t be beat. We always suggest that our clients manage their own equipment financing needs to save money.
Glengarry has a minimum mortgage amount of $500,000.
Our rates are established on a case-by-case basis, and change very often, so you won’t find our rates published on our website.
Getting started is easy! To first assess your eligibility you’ll need to tell us a bit about your farm, including the reason you’re looking for financing, how much you are looking to borrow, your gross annual sales, and your principal source of farm revenue. This will help us determine whether we may be able to provide financing.
Once we determine your potential eligibility, you’ll need to demonstrate a clear financial snapshot of your farm. At the time of loan submission we’ll need:
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Three years’ accountant-prepared financial statements or last three years’ T1 with Farm Schedule (T2042 Statement Of Farming Activities)
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Net worth statement (Both personal and corporate)
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Cash flow projection or business plan demonstrating projected revenues and expenses for the coming year
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CRA Notice of Assessments for all borrowers and guarantors (including corporations)
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Low credit scores can occur for a number of reasons. Sometimes it’s due to several late or missed payments in the past, or from too many recent inquiries. We really want to work with our borrowers on improving financial health, so an individual approach is taken with each file and the credit history.
From first contact to a term sheet or discussion paper, we usually require just a few days if a borrower has all paperwork ready to go (see above). From term sheet acceptance to funding, we can usually close in as little as five weeks’ time. Length of time to funding depends on any number of factors such as appraiser availability, lawyer timelines, and readiness of paperwork.
Because we are entering into a legal mortgage contract with every borrower, we do charge prepayment penalties if a borrower decides to end their contractual obligation early. But, because we are an alternative mortgage lender, our terms are very short – as little as one year – so we can support our farmers getting back to their banks quickly at lower prime lending rates.
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.
MEET CANADA'S FIRST ALTERNATIVE AGRICULTURAL LENDER
Since 2021, Glengarry Farm Finance has been committed to the success of Canadian farming by providing alternative financing to what is available through conventional lenders, such as banks and credit unions. But what exactly is alternative lending, and how can it help your farm thrive?
Traditional lenders offer products like mortgages and credit lines, which many farms use to support their business. However, these institutions require borrowers to meet stringent criteria, including good credit and a strong financial history. Very few people, in farming or otherwise, are always in the state of financial health necessary to meet these requirements. So what happens when you don’t, but you still need to borrow money?
Alternative lending could be the answer. Unlike traditional lenders, alternative lenders like Glengarry operate with more flexible guidelines and are often willing to take on additional risks. This makes Glengarry a viable option for farms needing faster approvals and short-term lending solutions for purchases, bridging gaps in operating capital, or refinancing existing debt. Once these immediate issues are resolved and better financial health is restored, borrowers can then return to the mainstream banking system.
Glengarry is here to collaborate on a lending solution that’s tailored to the needs of your farm. When a bank or credit union says no, we work hard to say yes!
We focus on potential, not the past and use a flexible approach when considering your loan request.
PRACTICAL SOLUTIONS
We are solutions-focused and our loans are customized to meet your needs.
ADAPTABLE
Our process is streamlined and simple. Start an application with just a few documents.
EASY APPLICATION PROCESS
We're a team of lenders with hands-on farming experience, so we understand you and your needs.
FARMING EXPERTISE
Reputable, recognizable, focused on your success.
CREDIBLE OWNERSHIP