What You’ll Want to Look At When Buying a Farm For Sale
by Kent Braaten
on Wednesday, July 15th, 2020 at 8:17pm.
If you’re talking about farmland in Canada, Saskatchewan is without a doubt one of the first places that comes to mind. With vast prairies spanning hundreds of thousands of acres, it’s the perfect province to find a farm for sale and start your agricultural journey. No matter if you’re hoping to farm crops or cattle, in north or south Saskatchewan, you can find a plot of agricultural land right here to get you going! When searching for the perfect farm, though, you’ll want to keep the following in mind to ensure you get the right fit for you:
Can You Afford to Buy a Farm?
Buying a farm may seem as simple as buying any other real estate, but unlike buying a home, it’s not as simple as paying the down payment, securing the mortgage, and setting off on your new adventure! While you can purchase a home with only 5% down to secure an insured mortgage, lenders may ask those buying farmland for more up front—sometimes even as much as 25%!
Where homes are simple dwellings, farms, much like commercial properties, are usually purchased with the intent to generate revenue. It’s not as simple as buying a cow and milking the money, though. Farms require an extensive amount of time and money to get started, and even more to maintain over time. And mortgage lenders are no strangers to this. That’s why, in order to protect their investment and ensure they will generate a return, they will ask for a more generous down payment.
Before you start your farm search, I suggest meeting with a lender who specialized in agricultural mortgages. They will be able to assess your financial health and affordability for purchasing farmland to give you more realistic expectations before you start looking outside what your wallet allows!