Protection against Interest Rate Hikes
La Financière agricole offers two kinds of protection against interest rate hikes:
Preferred Rate (PR) | Secure Rate for Aspiring Farmers (SRAF) |
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Protection applicable to financing of up to $500,000, for the loan term |
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This protection is initiated, for a specified period of time, when market interest rates exceed a defined threshold.
Once a SRAF eligibility period is over, the PR applies to full-time operations based on the terms shown in the table below.
Specifications | Preferred Rate (PR) | Secure Rate for Aspiring Farmers (SRAF) |
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Eligibility |
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Characteristics | 60% of the portion of interests exceeding 8%Calculated according to the interest rate on 1-year home mortgages established weekly by the Bank of Canada, to which the 0.30% rate reduction provided for in the FADQ's agriculture financing program is applied. Fermer l'infobulle | 100% of the portion of interests exceeding 5, 6 or 7%Calculated according to the interest rate on 1-year home mortgages established weekly by the Bank of Canada, to which the 0.30% rate reduction provided for in the FADQ's agriculture financing program is applied. Fermer l'infobulle |
Term | Over the loan term |
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The following clients are not eligible for the Protection against Interest Rate Hikes:
Explanatory video: Protection contre la hausse des taux d’intérêt - 12 min (only in French)