Acreage Financing

Acreage lending presents various formats, each with its own nuances:

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Land Only Financing:

While most financial institutions limit lending to 50% of the land's market value, MMG Mortgages has access to select lenders in Alberta willing to consider financing up to 75% of the land market value, primarily in urban city center locales or small acreages near city limits. The distance from a major city center and the property's scale, zoning, and price affect the down payment required. Larger properties, agriculturally zoned land, and higher-priced properties typically necessitate a larger down payment.

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Land & Home Financing:

Financial institutions prefer financing acreage properties designated as smaller homesteads, primarily for personal or recreational use rather than agricultural purposes or income generation. Transactions involving farming, animal breeding, or deriving income from the land fall under Farm Lending, subject to distinct qualifying criteria.

When acquiring an acreage for personal use, lenders typically consider the value of 10 acres and the dwelling, without factoring in the value of outbuildings.

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However, we have options available through specialized lenders willing to finance larger acreages or non-operating farms up to 160 acres. These lenders consider the full appraised value of the entire quarter section, including the dwelling, and may even assess the value of one outbuilding.

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We always advise incorporating special conditions into any purchase contract for well and septic testing, especially if the properties lack access to city water and sewer. This may also be a prerequisite for mortgage approval.