Help retire
our high-interest
construction loan
mortgage

At the recommendation of the staff and finance team, the board has authorized an end-of-year bond issue to deal with the high-interest rate second mortgage that burdens us right now. Between November 1 and December 18, 2020, you can purchase 1–5 year bonds at interest rates that greatly surpass what you will currently get from the banks and credit unions.

Our goal is to sell $735,000 worth of bonds to pay out our second mortgage and free up needed cashflow for the 2021 budget.

The bonds are being offered for 1-5 years with increasing interest rates over the five years. They will have a starting rate of 2.5% in the first year and growing to 3.5% in year five. The longer you leave the bond with us, the more interest you earn. Interest is paid to you annually on the anniversary date or compounded into calculations in subsequent years. Bonds are available in $1,000, $5,000, $10,000, $25,000, and $50,000 denominations, and there is no maximum for the number of bonds a person may purchase. Bonds are also available to businesses that may want a return on their reserve.

DETAILS

  • Regular Interest is accumulated monthly and is paid to the registered owner on each annual anniversary date.
  • Bonds are available in $1,000, $5,000, $10,000, $25,000, and $50,000 denominations.
  • The interest rates posted reflect the guaranteed rate per year for the term of bond purchased. (e.g. purchasing a 3 year bond guarantees 2.5% the first year, 2.75% for the second year, and 3% for the third year.)
  • There is no maximum for the number of bonds purchased per purchaser.
  • By completing this request, the purchaser agrees to all the rates and terms as defined by Harvest Bible Chapel Barrie.

To get started, send a request to the church office using the online form or by calling 705.739.8613.

Complete This Form To Get Started

Rate Charts

Frequently Asked Questions

The church owes $735,000.00 for an open line of credit that was used for the construction/renovations of our new church building at 7 George Street.

The interest rate is 8% and the loan doesn’t renew for another year—December 31 2021, so currently the church has to pay $12,500.00 each month in payments. In order to reduce this payment, the church needs to get the loan refinanced by another bank [which we haven’t been able to find] or pay this existing loan out in full.

If we sell $735,000.00 in bonds to our church family, we still owe the same amount of money, but now we pay a much lower rate of interest on the balance per year (2.5% up to 3.5%). The church then owes the principal of the bonds over the next 5 years and then the loan is completely paid off (instead of being rolled into a long term mortgage).

The goal is that by December 2025, the church will only be in debt for a 1st mortgage on the property at 7 George – and has been able to bless the church family with the higher interest rates on their savings (instead of giving the interest to a bank)!

The minimum term for a bond purchase is 1 year [December 2021], which is when the 1st mortgage is up for renewal. This gives the church an opportunity to renegotiate the 1st mortgage at a lower rate, and for an amount which includes the shortfall between what’s left in the savings account and what is owed in bonds. By January 2022, the church will have enough to pay out all the outstanding bonds should that be necessary.

The bonds are considered an investment so the only tax implication is regarding the interest earned. T5’s will be issued every year for any interest earned over $50.00 per bond holder.

Hard copies of actual bonds will be sent out to every purchaser in January 2021.

Right. If you purchase a 5 year compounded bond, you will be paid back the principal and all the interest at the end of 5 years. If you buy a 3 year bond, you will be paid back the principal and interest at the end of 3 years.

Keep in mind 2 things:

  1. You can always cash your bond in early if you need your funds. Harvest will need 30 days notice and you will forfeit any interest that would have been earned in the year you cash it out (e.g. If you buy a 5 year bond and cash it out during year 3 before December, you will only be paid interest on the first 2 years)
  2. After purchasing your bond, you can’t buy additional years once it matures. For example, if you buy a 3 year bond, you won’t be able to buy another 2 years once it matures in 2023.

From the date the church receives the funds to pay for your bond.

You are agreeing to the terms posted on this website when you fill in the request form. Church bonds are perfectly legal and have been used in this manner by many churches over the years.
That is the only risk – but not much of one considering the church would have to go bankrupt and the value of 7 George would have to drop well below market value, leaving the church without an equity position to pay back any debtors.
HARVEST BIBLE CHAPEL BARRIE

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