What can you finance with a condo term loan?
A unique loan product to condominium corporations and strata plans who are faced with unexpected capital repairs and replacements, additions and alterations and reserve fund shortfalls.
Major repairs and replacements
Local distribution companies and other government or government-regulated entities offer programs that incentivize condominium corporations to reduce greenhouse gases and other emissions and improve energy efficiency through retrofits. When condominium corporations have experts evaluate the viability of these retrofits, they often find that when financed by a CondoCorp Term Loan, the savings created by the retrofits are greater than the cost of the loan payments.
Balcony, Window and Door Restoration
The windows, doors, and balconies of a condominium are unit owners personal use common elements and protect their unit from the outdoor environment. Over time the windows, doors, and balcony can wear, and allow moisture seepage into the unit ultimately resulting in rot. Degradation of the balcony structure is also a concern. Proper maintenance should be taken to ensure a cool summer, warm winter, and the unit owners safety while enjoying their balcony. Typically, these renovations are undertaken together and can form a significant expense. It is often the case that these renovations will be a large financial burden on the unit owners. Depending on the financial constraints of these owners, CondoCorp Term Financing could be a viable alternative to a special assessment.
Parking Garage Restoration
Surface level and below grade parking spaces typically cost between $100 and $500 per stall per year to maintain and repair. This includes waterproofing and repairs of degraded concrete and other structural elements of the system. The CondoCorp Term Financing program can offer financing schedules tailored to manage these
Elevator Repair and Replacement
As buildings age, one of the most fundamental components of the condo, the elevator system, will need to undergo repairs, updating and replacement in some instances. Because elevators are required for access to condominium residences, to ensure continuous service, repairs must often be undertaken over an extended period. Morrison Financial offers financing tailored to these schedules, which can take 18 months or longer to complete.
Reserve Fund Replenishment
Often a reserve fund study will reveal that a corporation has an inadequate balance to pay for anticipated repairs and replacements of common elements of the corporation for the ensuing 5, 10 or 30 years. This is often the result of a recent negative surprise that resulted in an unexpected and expensive repair and replacement project. To avoid a substantial special assessment of the unit owners, a loan can be used to replenish the reserve fund.
Additions or Alterations
What is an addition or alteration?
An addition or alteration can be made without notice to the owners if in the opinion of the board it is necessary to maintain security and safety of property or assets and is less than the lesser of 3% of the annual budget and $30,000. Condominium Atc, 1997 – 97 (5)
What is required to approve the work?
The corporation shall send a notification to owners of the proposed modification, which states that any issues should be brought forth through requisition of a meeting. If the modification is substantial the board requires 66 2/3% of units to vote in favor.
Can a condominium borrow for this?
Refinancing of Guest Suites
Purchases from the Developer
Sample condominium financing projects
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“Morrison Financial has been CLT Logistics primary financial partner for over 17 years, and has supported us through numerous growth spurts. CLT has today established itself as one of the premier product logistics and manufacturing companies in Canada, in the Health, Beauty and Household categories, shipping to over 10,000 retailers globally. We could not have made this successful journey without the help and support of Morrison Financial, who we continue to count as a partner beyond that as a source of financing.”
Condo Term Loans
“The most important [financial] development in the condominium industry in years.”
“Morrison Financial consistently provides dependable and highly professional lending services to the development community. Having worked with Morrison Financial for many years, the Morrison team has continuously exceeded our expectations in terms of delivering creative and comprehensive financial solutions, personalized service and timely administrative oversight. This has helped our company, and our clients, in being able to successfully fund our Projects and meet critical timelines. Morrison Financial are reliable business partners who understand the importance of creating relationships while performing a valuable financial service.”
Condo Term Loans
“A true win-win situation for both the condominium corporation and the contractor. We found the people at Morrison Financial to be completely professional and responsive.”
“Morrison Financial helped the senior management team of Thinkpath Engineering Services (TES) complete a management buyout in 2011, and since then has provided us with flexible asset based term lending. We have enjoyed not only having Morrison Financial as a lender and equity partner, but also as an important business partner whose expertise we can rely on as we continue to grow. They understand our business and financing needs and have provided a lending structure and pricing that supports our operating and growth objectives. They have made important contributions to key financial decisions and opportunities. With nearly four decades of experience, TES continues to be a global leader in engineering and design services, and we are fortunate to have Morrison Financial as a financial partner.”
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