Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: September 15, 2026·Financing
The down payment on a farm can be higher than on a residential home, because agricultural lenders often require a larger equity contribution for farmland, especially bare land, land with a commercial operation, or property that does not qualify for a standard residential mortgage. A typical residential minimum down payment does not always apply to a working farm.
The exact amount depends on the lender, the property type, whether there is a residence, the farm's income, and whether the loan is structured as a residential or an agricultural mortgage. A property with a home may qualify for residential-style financing on the dwelling portion while the land is treated differently, which changes the blended requirement.
Do not assume the residential five-percent rule carries over, because many farm buyers are surprised by the equity an agricultural lender asks for. Talk to a lender who understands farm property before you set your budget, and read our Financing guide for the framework.
Important: This answer is general professional guidance for educational purposes and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Gurjit Ghai, REALTOR®
Personal Real Estate Corporation
Brokerage: Rexara Realty Inc.
Gurjit Ghai is a BC real estate professional specializing in agricultural land, ALR properties, and farm operations across British Columbia. He helps buyers and sellers navigate water rights, soil capability, farm classification, and the unique due diligence that farmland transactions require.