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Condominium Corporation Loan

A Condominium Corporation Loan is also known as condo corporation financing or a condo corp loan. This product helps condominiums receive money to complete repairs to their building.  A loan is usually the best option. It helps keep a healthy reserve fund and prevents the unit owners from going through a special assessment.

Specialized Lending Solutions for Condo Boards

 

It is a challenge for the Condo Boards, and their property managers to find borrowing solutions.  Most of the major banks and financial institutions in Canada are not willing or able to provide a loan.  This is because you cannot put up common property as collateral. Our mortgage brokerage has over a dozen lenders, from banks to private lenders, ready to work with you. We are highly trained with years of experience.

Why Would the Condominium Need or Want to Borrow?

Condo corporations generally need money when they need repairs to the common property. In most cases, there is not enough in the reserve fund to cover the costs. Most of the time a property is over 20 years old and in need of repairs and upgrades. However in some cases properties built less than 10 years ago need corrections to construction defects. Condo corporations  can take out a loan and amortize it over 5 , 10, or even 20 years.  This helps keep the reserve plentiful and the condominium financials healthy.

Condo Board’s Obligations

Condo Boards are required by law to repair common property when necessary and have to make the necessary repairs. For this, they either need to have the money in their reserve fund or get it from the unit owners. If they do not have the money in the reserve, the Condo Boards, and the property managers have to approve a Special Assessment. In this case, each owner pays their share of the total repair cost.  If the unit owner is not able to pay the portion of any special assessments they risk the same consequences they would suffer if they neglected to pay the common element fees. To avoid this scenario, our mortgage brokerage provides condo corporation financing. This is generally the best solution. It eliminates the need for the owners pay a large lump sum of money  at once.

Get Started With A Free Consultation

Condominium Corporation Loans are a beneficial option for Condo Boards, property managers and owners. This solution generally maintains or increases the equity value of their property and condo financials.

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