Borrowing

Borrowing is becoming more common for condominium corporations.  The loans are repaid by the monthly condo fees, typically to avoid a special assessment so that not only the current owners are paying a current shortfall, but instead the cost is paid by owners (potentially multiple owners) over time. The condominium can borrow as a corporation so that each owner does not need to qualify for individual financing. When a unit sells, the payments for the loan are transferred to the new unit owner over time in a seamless process as the condominium corporation pays the loan back from the condominium fees. The right solution depends on a number of factors that need to be explored with a lender that is experienced with condominium loans. More Boards are choosing to present borrowing to their owners as an option so that the owners can decide how to fund the projects that need to be carried out. This process can empower the condo owners to decide the best approach for funding as the owners have to vote on a borrowing bylaw in order to proceed with the loan. 

Ryan Griffiths, CWB Maxium