So, you want to buy a rural property, a home in the country?  Space, peace and quiet, big home, big yard, John Deere tractor…the list goes no.  If you are thinking about buying a rural home, there are a number of things to consider, not the least being how different it is to get a mortgage.  With rural properties, depending on remoteness of location and condition, it could take months to sell. When compared to the quicker sale for a city home, most banks prefer to stay conservative.  This means they may not want to give you a mortgage.Rural Property

Special Rules related to a Buying Rural Property

Buying Rural Property is defined as only one house, the garage and 10 acres of land in it’s valuation. Any additional buildings such as barns and extra acreage will not be considered. This policy applies to both conventional and insured mortgages.

5 Things to Consider When Buying Rural Property

  • Water & Septic: Both the well equipment and septic system can be very expensive to repair or replace. Thus, when you buy rural property, be sure you include these with your conditions. Many lenders will ask for a potability and flow test for the well because a house without water is very hard to sell. Remember, when buying rural property you need to have the septic system inspected by a qualified septic inspector.
  • Land: Lenders will mortgage a house, one outbuilding and up to 10 acres of land only.
  • Appraisal: The appraised value may come in lower than expected. This is due on only valuing 10 acres and 1 outbuilding. Location and comparables may also contribute to this. Be ready to come up with the difference between the selling price and the appraised value.
  • Title Insurance: Buy title insurance to protect you against title registration. Buying rural property, large parcels of land & farms, may have a checkered past.
  • House/Content/Fire Insurance: Rural properties are far from fire hydrants and fire stations.  You will pay more for home insurance. Look into this first since some insurers do not cover rural property and without insurance, your bank will not advance funds at closing.

I live in a property with a well and septic system.  Our street has no fire hydrants. Any questions that you may have I can answer.

With the help of a qualified Mortgage Broker, your needs will be taken care of.
Please give me a call at 613-867-8076 or send Jennifer Rossides an email at

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