Getting a mortgage in Toronto can be tough when you want a condo located right down, or a single detached in Rosedale. But when you’re talking about moving into Pickering or other rural areas, and you want a mortgage that’s for agricultural land but that you’re going to use as residential, it can get a bit tricky. Confused yet? It’s just the beginning.
Say for instance that you had a job outside of your home, but you’ve always dreamed of living on a farm – whether or not you’re actually going to use the farm that comes with the property. Maybe you just want to grow a small vegetable garden, have a few chickens, or don’t want to use the land at all – you just want that spaciousness to roam around. Whichever of these options you choose, most lenders will have you apply for an agriculture mortgage, something that can be extremely difficult to obtain. But, work with a Toronto mortgage broker, and they’ll have the solution for you.
That solution could very well come in the form of a rural-estate mortgage. These mortgages are available specifically for the above scenario – when one wants to live on a farm but has another source of income and doesn’t want to actually use the farm to earn their living. But applying for these mortgages still aren’t like applying for your run-of-the-mill Toronto mortgage in the middle of the city; there are several criteria that borrowers must first meet.
The first rule applied to rural-estate mortgages is that the land cannot exceed 160 acres; and there must not be more than 10 animals residing on the farm. The location of the property must be within 100 kilometres of the closest major urban centre (such as Toronto,) and homeowners must be able to make the mortgage payments on income not obtained from the farm.
Due to these restrictions and criteria, it’s generally best if borrowers seek out the services of a Toronto mortgage broker when they want to apply for a rural estate mortgage. A broker will be able to steer you towards a lender that works with these types of mortgages (not all do;) and they’ll be able to help you wade through all of the criteria and see if they’re a good match for you. While brokers are helpful in any mortgage situation, they’re particularly necessary when dealing with rural estate mortgages. Not only because they come with so many restrictions and parameters, but also because the rules for them change from province to province.
