Canadian Agricultural Loans Act Program: Step 3. Before you apply

Step 3. Before you apply

Review and consider the following information before you apply.

Program loans are administered by lenders

If you’re a farmer or agricultural co-operative, you must apply with a lender to receive a farm loan under the Canadian Agricultural Loans Act (CALA) Program.

Lenders, such as banks, credit unions, and caisses populaires, issue and administer loans under the CALA Program.

Lenders must take the same care and prudence to issue CALA Program loans as they would when they conduct ordinary business.

If you’ve already made a purchase, a lender has 60 days from the purchase date to issue a CALA Program loan.

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
  • 10 years for all other purposes

    Fees

    The registration fee is 0.85% of the amount of the loan. This fee must be submitted 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

    Administrative guidelines

    The following are used to administer the CALA Program.

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