We will face crucial decisions regarding finances as we seek to fulfill the mission of the church. The choice to take on mortgage debt is one such decision and is perhaps the one most fraught with potential consequences. While it may seem like a necessary step in securing a church building, expanding facilities, or remodeling, at least three dangers of incurring debt should give us pause.

Hindering ministry initiatives

One of the primary dangers of mortgage debt is its hindrance to the advancement of ministry initiatives. Every dollar spent on mortgage payments is a dollar that could have been invested in hiring staff, funding outreach programs, or supporting evangelistic initiatives. The burden of mortgage debt limits the financial flexibility of the church and constrains its ability to respond to emerging needs and opportunities.

The long-term commitment of mortgage payments locks the church into a fixed financial obligation, leaving little room for innovation or adaptation to changing circumstances. During the COVID-19 pandemic, for instance, our church was debt free which enabled us to maintain ministry programs and staffing without government assistance or extra stress.

Missing out on financial miracles

Another hazard is potentially robbing the congregation of witnessing a financial miracle. Throughout Scripture, we see countless examples of God's provision and miraculous intervention in times of need. By relying on a mortgage as the solution to a church's facility needs, we may inadvertently limit our faith and miss out on the opportunity to experience God's miraculous provision firsthand.

When churches operate within their means and trust in God's provision, they open themselves up to the possibility of miracles. These supernatural moments not only strengthen the faith of the congregation but also serve as a powerful testimony to the surrounding community.

For example, we needed a new well dug at Hillside Church during our recent building project. This was not part of our original budget and was putting a real hardship on our financial strategy for the addition of a multipurpose room. To our surprise, a well-drilling company called one afternoon, offering to drill the well for free. They wanted to test out a new drilling rig.

This miracle would not have come about without our congregation feeling the burden to finance this with cash, causing us to pray and spread the word of our need. This is only one of several stories of God's provision during this $1.2 million building expansion.

Overextending financial resources

Finally, taking on mortgage debt can lead to the perilous trap of spending more than the church can afford. The allure of fancy remodels can tempt us to overextend our financial resources, risking financial instability and placing undue stress on the congregation. What begins as a well-intentioned investment in the future can spiral into a burden that weighs down the church for the future.

When churches find themselves saddled with significant debt, they are forced to divert valuable resources away from ministry and toward paying off what is owed instead. This can impede the church's ability to fulfill its mission and may ultimately jeopardize its long-term viability.

As stewards of God's resources, we must exercise prudence and restraint in our financial decisions, avoiding the temptation to pursue growth at any cost. The challenges associated with mortgage debt are real. There can be circumstances in which taking on debt is necessary; however, it should be approached with caution and only considered as a last resort.

Let us prayerfully consider the implications of mortgage debt on our churches and commit ourselves to making wise and faithful financial decisions for the glory of God.

Eric Daniel is passionate about empowering others to grow in their Spiritual Leadership. He founded Global Ministry Advance in 2023, a coaching organization, for the purpose of assisting ministers, missionaries and Christian organizations in the development of goals and strategies for greater health. Eric became Senior Pastor of Hillside Church in Napa, CA in 2002, and also serves as an Executive Presbyter for the Northern California and Nevada District Council of the Assemblies of God. Learn More »