Background:
Affinity Credit Union granted a mortgage loan of $281,250 to the Monastyrskis in 2016 to construct a log home on their farmland, designated as their homestead under The Saskatchewan Farm Security Act. Most of the loan funds were disbursed to Pioneer Log Homes of British Columbia for the log home package. However, Pioneer failed to deliver the materials, citing a forest fire. The Monastyrskis received no home or refund and could not proceed with construction. The credit union later stopped advancing funds.

Legal Issues:
Affinity Credit Union sought confirmation of a judicial sale following a foreclosure order nisi. The Monastyrskis opposed this, arguing that section 44(10) of The Saskatchewan Farm Security Act protected their homestead from foreclosure. Affinity countered that section 44(12.3), which excludes mortgages made for new construction, applied.

Court’s Analysis:
The court found that the mortgage was made solely for new construction, satisfying the requirements of section 44(12.3). It emphasized the purpose agreed upon at the time of the mortgage, regardless of the funds’ ultimate use. The Monastyrskis’ request to set aside the order nisi was dismissed as no exceptional circumstances were proven.

Costs and Award:
The court ordered costs on a solicitor-client basis in favor of Affinity Credit Union and confirmed the judicial sale. Financial terms were not specified.

Conclusion:
The foreclosure and judicial sale proceeded as lawful under the statute.