Frequently Asked Questions.
1. How long does it take to receive a response on my application?
Once a completed application and supporting documentation is received, the goal is to provide an initial follow-up within 10 business days.
2. Do you provide pre-approvals?
Currently, we do not offer pre-approvals to clients. Please contact our office to start the conversation with a Loan Officer on our lending team. After the purchase and sale agreement is finalized, a formal loan offer will be provided.
3. Do I need to have life insurance in place prior to applying?
Not prior to applying, but you may wish to start the process. The Board will require a Collateral Assignment of a life insurance policy for the amount you are borrowing. As a service, the Board offers loan life insurance at competitive rates.
4. How is loan security arranged?
Staff will work with you to determine what is required for loan security. Security typically consists of real estate, livestock, quota, equipment, and applicable guarantees.
5. Is there a penalty for paying out early/making additional payments?
The Board offers 2 main types of loan products. Open loans allow for pre-payment/additional payments at any time without fees. Closed loans allow a 10% additional payment per calendar year, with the option of a larger/full repayment on the 5-year loan anniversary. Early payment fees will be added if the payout is not on the 5-year anniversary.
6. Can I be approved if I have declared bankruptcy in the past or have a poor credit score?
A poor credit score/prior bankruptcy will affect your ability to be approved for a loan. Staff needs to fully understand your credit history and your current finances. You may be able to strengthen your request with a larger down payment or a guarantor/co-signer.
7. I live outside Nova Scotia and want to purchase a farm for property for the future. Can this be financed through the Farm Loan Board?
You must be actively farming or plan to farm the property in the current year and report your file a statement of Farming income and expenses with CRA.
8. What grants or programs are available for new farmers?
To find out what grants or programs are available for new farmers, reach out to your nearest regional Department of Agriculture office. For more information, visit
9. How much do I need for a down payment?
While some owner injection is preferred, every scenario is different, so there is no generic % of down payment answer. There are options to making a cash down payment, including providing other unencumbered assets, acceptable to the board for security. While a down payment does provide some equity into a transaction, it also reduces the amount of financials and thus the debt service required.
10. Does the Farm Loan Board finance projects involving cannabis?
Currently, we do not finance projects involving cannabis.