Canadian Agricultural Loans Act program: Step 3. How to apply

Step 3. How to apply

Please visit any of the following lender organizations to apply for a loan under the CALA program:

  • chartered banks
  • credit unions
  • caisses populaires
  • Alberta Treasury Branches
  • any other organization designated by the Minister

The lender will go through its loan application process and determine the financing best suited for your needs, which may include a loan under the CALA program.

Loan details

Maximum interest rates

Interest to be paid on a floating rate is a maximum of the lender's prime rate plus 1%.

Interest to be paid on a fixed term rate is a maximum of the lender's residential mortgage rate, for a comparable term, plus 1%.

Repayment terms

The maximum repayment terms are:

  • 15 years for land purchases. Lenders may amortize loans for longer than 15 years provided a balloon payment is scheduled for the loan at the end of the 15 year period. The remaining loan amount could then be refinanced under the Canadian Agricultural Loans Act (CALA) for a further 10 years.
  • 10 years for all other purposes.

Fees

The registration fee is 0.85% of the amount of the loan. This fee must be submitted to the "Receiver General for Canada" at the time of loan registration.

An administration fee may also be charged by the lender. For loans up to $250,000, the administration fee is capped at 0.25% of the amount of the loan (to a maximum of $250). For loans over $250,000, the administration fee is capped at 0.1% of the amount of the loan.

Service standards

Under normal circumstances:

  • Our goal is to respond to general inquiries made to our phone number or email address before the end of the next business day.
  • Our goal is to register loans received from lenders within fifteen (15) business days.

Read more about Service Standards at Agriculture and Agri-Food Canada.