By : Radu Arvatescu

Churches can face significant challenges when financing growth. If your organization is looking for a new real estate investment, or if you need to expand on your current ministry, church mortgages in Ontario are the obvious solution.

There are special packages available for churches, which you can find when working directly with a mortgage broker. Whether you are a year or just a few months out from shopping the mortgage market, you can take some important steps to ensure success on any application.

  1. Start Collecting Data and Managing Records

    Church mortgages in Ontario are a form of a commercial mortgage, and lending criteria still apply. One of the most important things you can include in your mortgage application is an income statement.

    Church incomes differ significantly from businesses, so you’ll need to have a creative approach to this process. Average sermon attendances, donation trends, and regular financial offerings all need to be included in your financial records. Total income should be evaluated going back as far as three years. Expenses also need to be detailed so that a lender can perform an accurate risk assessment.

  2. Start a Focused Capital Building Strategy
    If you can hold off for a few months on applying for a mortgage, you will have the opportunity to start building capital. This can be used for a down payment on church mortgages in Ontario.

    A capital campaign can quickly build your finances so that you are ready to service the closing costs of a loan. If you don’t perform regular capital campaigns (also known as fundraisers), then now is the time to start the tradition.

    Work with a professional campaign manager to ensure success. Some managers will be willing to provide services without a fee or at a discounted rate. Network with other leaders in the religious community to find referrals.

  3. Save for a Down Payment on Church Mortgages in Ontario
    There are other ways to build capital beyond a focused campaign. If you can cut back on spending, then the savings could be used to contribute to a down payment. Identify areas of your organization where spending or investment could be offset until a mortgage has been secured.
  4. Cash Savings Can Help
    Beyond a down payment, you should also seek to build up cash reserves. In addition to providing a financial blanket, cash savings can be presented to a loan appraiser. For church mortgages in Ontario, appraisers look very closely at cash reserves because they reflect on your fiscal planning and responsibility. With higher cash savings you will find that mortgage offers are more competitive.
  5. Don’t Settle for the First Offer
    Whether you shop for a mortgage privately or through a broker, you should avoid settling for the first or even the second offer. You should perform due diligence on all your options to determine the total cost of borrowing. Don’t miss the ‘hidden’ costs like closing fees and application fees. A competitive interest rate could quickly be offset by fees that were overlooked.
  6. Work with a Broker Experienced in Church Mortgages
    While it is possible to shop on the mortgage market without a broker, it is not recommended. You will spend time exploring mortgage options, talking to lenders, and engaging in back and forth negotiations that could ultimately turn out fruitless.

    Hire a mortgage broker that has a history of success in obtaining church mortgages in Ontario. They will work with your interests as a priority, finding the most competitive packages that best suit your financial situation. In most cases, a broker will be able to secure lower interest rates and fees, which will more than offset the cost of hire.

    Church mortgages can sometimes be more complicated than standard commercial mortgages, but there are plenty of favourable options out there. With a broker you’ll get the best offers, allowing you to achieve your goals.

To book an appointment to discuss your needs and learn more about how Mortgage Capital Investment can help you, call 416-877-7438 or

Lowest Residential Mortgage Rates in Canada*

Term OUR RATE Bank Rate
3 Year Fixed/ 25 yrs 2.54 2.850%
3 Year Variable/ 25 yrs 0.99% Promo 1.86%
5 Year Fixed/ 25 yrs 2.64% 2.84%
5 Year Variable/ 25 yrs 1.20% Promo 1.65%
5 Year Fixed/ 30 yrs 2.74% Promo 3.04%
5 Year Variable/30y 1.45 1.85

Updated: JAN 17, 2022

* Current promotion rates may provide an additional 0.05% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.

LOWEST REGULAR RATES IN CANADA*   * Current promotion rates may provide an additional 0.10% discount. Rates may vary between geographic regions and the posted rates on this website may not be available in your area. Please contact our MCI office for more details and current promotions.

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