Frequently Asked Questions

Welcome to our Mortgage Broker FAQ page.

Whether you’re new to working with us or have partnered with Farm Lending Canada before, we’re here to make the process as smooth and transparent as possible. Below, you’ll find answers to the most common questions about submitting deals, our lending criteria, required documentation, and more. If you don’t see what you’re looking for, please feel free to contact us directly — we’re always happy to help.

#1	Do you work with self-employed borrowers or business owners?	Absolutely. We support various income types, including self-employed borrowers. The Bank Statement Program is available to purchases, while standard documentation is required for refinances. We also offer a Net Income After Tax program for incorporated borrowers.
#2	What expenses can be added back when using T1 Generals to calculate net business income?	Net business income is averaged over the most recent two years (or most recent year if declining), and we add back interest, depreciation (CCA), and other non-cash expenses where applicable.
#3	Can I use the Bank Statement Program for a refinance?	No, the Bank Statement Program is currently available for purchase transactions only.
#4	How does the Bank Statement Program work?	We take a conservative approach. We review the most recent 12 months of business bank statements and analyze all credit and debit activity to determine net business income.
#5	What’s the process for the Hobby Farm / Rural Residential program?	We are flexible with property size and location. All acreage and one outbuilding are included in the appraised value. Underwriting is similar to a prime lender. The home and property must be in good condition, and gross farm income must not exceed $20,000/year.
#6	What qualifies as a Hobby Farm or Rural Residential property?	These are rural properties used for personal enjoyment or supplemental income – not full-time commercial farming. They may include features like small livestock, gardens, or crops.
#7	Is there a maximum acreage limit?	No. We include all acreage in the appraised value.
#8	Can the borrower earn income from the farm?	Yes, gross farming income of up to $20,000/year is allowed under this program.
#9	What if the gross farming income is more than $20,000/year?	If gross farming income exceeds $20,000/year, the file may be a better fit under our Small Commercial Agriculture program or our Private Lending option, depending on the overall application.
#10	Are outbuildings allowed?	Yes. We allow one outbuilding to be included in the appraised value.
#11	What is the typical turnaround time to receive a response from the credit team?	Our underwriters aim to respond within 24 business hours of file submission. Once the file is submitted to the lender, conditional approvals are typically received within 1–2 business days.
#12	Do you offer mortgage solutions in second position?	No, we do not currently offer second-position mortgages.
#13	What is the maximum loan-to-value (LTV)?	We offer up to 80% LTV. The actual LTV approved depends on factors such as credit score, property type, and location.
#14	What supporting documents are required?	Before submission, we request income documents and any other supporting information you’ve collected. Additional documentation may be requested after conditional approval is issued.
#15	How do we know what interest rate to use?	Our rates are shared in our weekly emails. The starting rate is based on the borrower’s credit score, with pricing premiums as applicable. We follow B20 stress test guidelines (contract rate + 2%). For qualification, Prime program B20 GDS/TDS must be under 39/45, and under 50/50 for Alt-A.