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Loan
One of the various means of funding/financing an capital project  (such as re-roofing) or certain major maintenance project (such as exterior painting).

There are two types of loans:
Loans are subject to terms, such as


Types of capital projects that are covered
The following list is not exhaustive but represents the common types of projects have been underwritten.

  • Roofing
  • Garage/car-park upgrades
  • Window upgrades
  • Balcony upgrades/replacement
  • Fire or plumbing retrofit
  • Elevator modernization
  • Security systems
  • Lighting retrofit
  • Heating and air conditioning
  • Painting/stucco renewal


Some of the benefits to the strata corporation

A strata loan provides funds directly to the strata corporation, not the individual owners. This allows the corporation to provide owners with the option to pay large repair or maintenance bills over time in convenient and manageable installments.
  • Provides an alternative or supplement to a lump-sum special assessment (special levy).
  • There is no delay to work scheduling.
  • Large expenses/costs can be spread over years.
  • Flexible terms and rates make it affordable and cost-effective.
  • Convenient – no personal credit application or enquiry is needed, and the application can be completed over the phone.


Some of the benefits to the individual home owners

  • Lessens impact on owners' personal savings or level of debt.
  • Doesn’t impose a significant or impossible financial burden, especially for those on a fixed or limited income.
  • Smaller payments spread over a period of time are easier to manage.
  • No loss of equity when owners wish to sell their property due to payout of lump-sum special assessments; new owner can take over the monthly payments similar to strata fees.
  • No personal credit application or enquiry needed.
  • No visit to the owner’s financial institution required.
  • No personal guarantee required. 
  • Allows the cost of major repairs to be passed through to future owners who benefit from the work as well.
Advantages to financing:
  • Work is completed all at once so the complex does not become a continuous construction zone.
  • No one has to wait to have their new roof while the contingency fund is replenished.
  • Property values immediately increase, or are restored, for everyone.
  •  The work is done at today’s prices (Inflationary costs are unpredictable.)
  • The borrowing can be extended over a longer period of time – therefore lower monthly payments.
  • The borrowing can be extended over a longer period of time – current owners only pay for the portion of the roof they “use” ie: stop paying when    they no longer live in unit
  • Any tax credits available to current owners reduces their overall cost. 
  • Loan amounts can be for ALL common area items need repairs or improvements ie: parking lot, elevator, boiler, geo-thermal, etc
  • Interest rates are fixed for term acting as a hedge against inflationary pressures.
  • Mortgages are not required
  • Personal Guarantees are not required
  • Owners personal credit is not impacted
  • Loan stays with the unit. Does not follow the owner when they leave
  • The cost of borrowing can be less than paying for a levy (depending if owner has to personally borrow. Depending on what they do with the cash they would have had to pay – invest in RESP, pay down mortgage, travel, etc)


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