If you and your company are looking to purchase a church or educational centre you will need a very specific type of financing. You and your company will need to consult your staff counsel or other legal authorities before applying for this type of financing known as an institutional mortgage.
Sometimes referred to as “religion financing,” institutional mortgages are available for those looking for funding for houses of worship. These mortgages are also needed to purchase education centres, such as primary and secondary schools.
Institutional mortgages are considered niche lending by banks and lenders. However, like traditional mortgages, institutional mortgages are available in long-term, short-term, fixed-rate and variable rate financing.
Traditional mortgages are generally reserved for first-time home buyers. They are not given to corporations, companies, developers or religious institutions because in order to obtain funding for a larger buildings that are not owner-occupied (like a church or school), there is more land at stake and lawyers will need to be involved in the purchase. Institutional mortgages are considered niche lending because they refer to a very specific type of property that is owned by a larger entity instead of a first-time home buyer or landlord.
When applying for an institutional mortgage you will need your company’s legal counsel to submit the below paperwork on your behalf. The same applies if you are looking for funds for a religious institution like a temple or church.
Your lawyers will tell you to put together the following package:
Yes! Not all lenders will grant this type of mortgage. Industrial mortgages, because of their specific nature – i.e., they are usually not owner occupied or have any tenants – are considered risky. A mortgage broker can help you secure an industrial mortgage by proving to lenders that you and your company are not risky borrowers. Brokers have access to different lenders and can find one that offers the right industrial mortgage for your situation. In general, it is best to work with a broker when trying to acquire any mortgage whether it is residential, commercial or institutional. Apply now and speak to a broker to see if the building you wish to purchase will need an industrial mortgage.Back
Canada’s mortgage website
Your home is your most valuable asset. It is probably the single largest investment you will make in your lifetime. Your home is more than a place to rest your head and raise a family. Your home contains equity. It is a treasured resource and in some cases, can even be used as an ATM (aka cash back mortgages and HELOCs – don’t worry we’ll get there).
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