CondoCorp Term Financing™

Morrison Financial provides a unique financing product to condominium corporations which are faced with unexpected extraordinary expenses in relation to the repair or maintenance of common elements.

CondoCorp Term Financing™

How our product can be a solution for your problem.

Flexible Loan Amounts

Loans may range from $300,000 to $10 million, depending on situations.

Flexible Loan Amortization

Loan amortization from ten to twenty five years as warranted by circumstances.

Experienced and flexible lender

We understand the need for flexible solutions to the condo unit owners.

CondoCorp Term Financing™

Morrison Financial provides a unique financing product to condominium corporations which are faced with unexpected extraordinary expenses in relation to the repair or maintenance of common elements. Such expenses can substantially deplete reserve funds, and could impose unwelcome lump-sum special assessments on the unit owners. Alternatively, necessary repairs and maintenance may be postponed, ultimately resulting in higher costs. This is a growing problem as condominium properties age.

Since 1994, our CondoCorp Term Financing™ division has offered condominium corporations a solution for exactly these circumstances. CondoCorp Term Financing™ allows condominium corporations to pay large repair or maintenance bills over time, in convenient and manageable monthly installments.

To read what experts have to say about CondoCorp Term Financing™, please see our Testimonials section.

Frequently Asked Questions

A list of the questions we are asked most often

How do we know if we should borrow?

Deciding whether or not to borrow is a matter for the condominium board and unit owners, with input from professional advisors, including whomever assists in planning the reserve fund requirements.

What kind of project is eligible for financing?

Virtually any type of common element repair or maintenance project can be financed, including: roofing, brick pointing, garage work, windows, balconies, fire retrofitting, elevators, CFC compliance, security systems, landscaping, waterproofing, heating and air conditioning, and general refurbishing.

What about delaying the work?

The corporation should look at the work to be done and the consequences of delaying or spreading the work over several years. While deferring work may save financing costs, it can dramatically increase future construction costs and may negatively impact market value in the interim.

How long do we have to repay the loan?

The repayment term (amortization period) ranges from 5 years to 25 years, but the interest rate cannot be fixed for longer than five years. If you choose a repayment term longer than five years, the balance outstanding at the end of five years is either paid in full or the interest rate is fixed at then current rates. This is much like renewing a mortgage after a five-year term.

Should we repay the loan as soon as possible?

Prompt repayment (shorter amortization) will reduce the financing costs, but it is important to evaluate what the unit owners can reasonably afford to pay monthly. If unit owners cannot meet monthly payments, their ability to retain their units may be threatened. While the work is necessary, unit owners should not be put under too much stress.

What is the monthly payment?

As with any loan or mortgage, the monthly payment depends on the amount borrowed, the term of the loan and the interest rate. In our experience, an affordable monthly payment for each unit owner is usually the most important issue. Financing is customized to achieve this whenever possible.

How do we actually get the funds?

Once the financing is approved (usually within 48 hours), the implementation is simple. The turnaround time to close the loan is usually within a two week period of our receipt of fully completed and executed documents. Funds are either dispersed directly to the corporation’s lawyer or directly to the contractor(s), as directed by the corporation.

What about legal liability?

Your corporation’s lawyer will recognize the documentation as being fairly standard for this kind of financing. It is important that the borrowing is properly approved in accordance with the corporation’s by-laws and the Condominium Act. In this regard, a standard legal opinion of the corporation’s lawyer will be required. There is no mortgage security taken and unit owners are not required to sign individually. Each unit owner is, however, liable for his or her proportionate share, just as he or she would be liable for any other expense approved and incurred by the corporation.

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Testimonials

“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.”

Norman Shore

Manager, Re-roofing Division, Dominion Sheet Metal & Roofing Works

“The most important [financial] development in the condominium industry in years.”

Johnathan Fine

Condominium Lawyer, Fine & Deo, Barrister & Solicitors