AFSC lending conditions

[ALLFARMER]

Just wondering if others who are no longer farming are having difficulty renewing there mortgages with AFSC?

I asked to renew for 6 yrs which is when my lease ends and then sell the land and pay out the loan. They have refused and have given me one yr to move the mortgage.

Seems like the are getting really sticky with this “no longer actively farming bent”

Guess I need my lawyer to review my loan docs for me. Since the payments are up to date I can’t see them sending a demand letter but ....???

Thanks

[LEP]

Are you trying renewing your interest rate for 6 years? If you are most mortgages are technically due at the end of the interest rate period with renewal at the option of the lender.

Like you say it's probably worth dyodd.

[ALLFARMER]

Are you trying renewing your interest rate for 6 years? If you are most mortgages are technically due at the end of the interest rate period with renewal at the option of the lender.

Like you say it's probably worth dyodd.

Yes old interest rate period is up

[SASKFARMER3]

Once your mortgage is up for renew it doesn't matter if you made every single payment if they want you out they can.

If your not a farmer are you speculating on land values.

If being a farmer is their mandate I think they win.

Talk to other lenders.

[ALLFARMER]

Once your mortgage is up for renew it doesn't matter if you made every single payment if they want you out they can.

If your not a farmer are you speculating on land values.

If being a farmer is their mandate I think they win.

Talk to other lenders.

Well the guy renting the land has 3M in assets and 3M in liabilities and big into afsc already so being bought out by him is not an option. He also wants 1.8M to buy out the lease.

Yes I am hoping to hang on to the dirt as long as I can. Land values went up on average 7% in AB last yr so when u add rental income thats a nice increase.

To make this all more difficult this land is now half owned by my x wife and refinancing is not an option.

[LEP]

By your ex owning half its as much her problem as yours.

If refinance is not an option then selling to a land investor, then taking your half of the equity to replacing the land with different land that you solely own is the next option. You have selling costs but shouldn't have tax costs as those are pushed down the road as long as you replace the land within 2 years.