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Bridging Generations Mortgage Guarantee
Manitoba has a relatively high proportion of young farmers, with many either inheriting or transferring a family farm from the previous generation. Arranging financing for these transfers can be difficult, and a detriment to the entry of young farmers into agriculture.
MASC's Bridging Generations Mortgage Guarantee assists with these inter-generational farm transfers, providing low-cost mortgage financing to the young farmer while securing a guaranteed income stream to the retiring farmer. With the retiree holding the mortgage, the borrower makes payments to MASC, which in turn makes guaranteed payments to the retiree.
- Eligibility
- Details
- Contact
- Links
Eligibility
Eligible Young Farmers
To qualify as a borrower for the Bridging Generations Mortgage Guarantee, you must be 18 to 39 years of age, a Manitoba resident and Canadian citizen (or lawfully admitted to Canada for permanent residence), and you will be personally operating the farm in question.
In addition, your combined annual gross off-farm income (including spouse) cannot exceed ${max_offfarm_income}, and your net worth may not exceed ${max_net_worth}.
The farm being acquired by the young farmer must be potentially viable, located within Manitoba and meet the program's minimum security requirements.
Eligible Retirees
The retiring farmer must be a Canadian citizen (or lawfully admitted to Canada for permanent residence) and hold the mortgage on the sale of the land and buildings.
Details
Loan Maximum
The maximum guarantee for the Bridging Generations Mortgage is ${max_loan}.
Interest Rate
Interest rates are subject to agreement between all parties involved, but cannot exceed MASC's prevailing rate minus 1.5%. The interest rate is fixed for the entire term of the loan.
Repayment
Bridging Generations Mortgage Guarantees can be amortized for up to {max_term} years. To meet the needs of the operation and the retiring farmer, payment frequencies are flexible. Frequency of payment by the purchaser can be different than frequency of guaranteed payments to the retiring farmer. There are penalties for early payout.
MASC’s payments to the retiring farmer are guaranteed and will be made by electronic funds transfer (direct deposit) to a Manitoba account.
Security
Loans are secured with real, personal, and/or other securities as required.
Other
The Young Farmer Rebate and Management Training Credit are not available for this guarantee.
Contact
To apply for the MASC Bridging Generations Mortgage Guarantee, contact your local MASC Lending Representative.
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