Most banks will lend against a house without much thought. Ask them to finance a church, mosque, gurdwara or temple and the conversation changes. These are special-purpose buildings, there are fewer buyers if a lender ever has to sell one, and the borrower is usually a non-profit or charity whose income comes from donations rather than a paycheque. That combination is why many congregations get turned down at their own bank and assume that is the end of the road.

It usually isn’t. A smaller group of lenders, including some credit unions, trust companies and private lenders, do finance places of worship. They simply want the file put together the way they look at risk.

Reviewing a congregation's financial statements before applying for a mortgage

What lenders look at

The main question is whether the organization can carry the payment from its regular income. Expect to provide a few years of financial statements, a record of donations and membership over time, the current budget, and details of any other income such as hall rentals or daycare space. The lender will also want an appraisal of the property, the names of the board members or trustees who can sign for the organization, and its governing documents. A congregation that has built up a building fund and can put a meaningful amount down is in a much stronger position than one asking to borrow most of the purchase price.

Situations I can help with

Buying a first building after years of renting space. Refinancing an existing mortgage that is coming up for renewal. Borrowing against a paid-off building to fund an expansion or renovation. Bridge financing while a capital campaign is still collecting pledges. Construction financing for a new building, which is advanced in draws as work on site is completed.

How I work with congregations

Before anything goes to a lender, I sit down with your treasurer or board and go through the numbers, so we know where the file is strong and what needs explaining. Then I take it to lenders who actually do this kind of financing rather than sending it everywhere. Rates, terms and approval depend on the organization, the property and the lender, and every application is subject to lender approval.

If your board is planning a purchase, a renewal or a building project, call me at 416-721-3080 or email fmalik@dominionlending.ca and we can go through it together.

Faisal Malik | Mortgage Agent Level 2
Dominion Lending Centres Edge Financial | Brokerage Licence #10710
Mortgage Agent Licence #M11000317
Independently Owned & Operated
Website: https://faisalmalik.ca/