SOLUTIONS
When a condo corporation faces a special assessment, unit owners bear the full cost immediately. There is another option. Condominium Lending Group provides financing that replaces the lump sum with fixed monthly payments. No personal guarantees. No security registered against individual units.
Financing Arranged
Condo Corporations Served
Provinces & Territories Served
Initial Response Time
THE CHALLENGE
A special assessment on a condo is an additional charge levied on unit owners to cover expenses the reserve fund cannot absorb. It might arise from an underfunded reserve or a building system that failed earlier than projected.
The repair itself is not the problem. Buildings need work. What creates the financial strain is how the cost is collected. A special assessment demands the full amount from every unit owner at once, sometimes thousands of dollars per unit, with 30 to 90 days to pay. Some owners can manage that. Many cannot.
Owners who bought their unit recently had no opportunity to contribute to the reserve fund during the years it was underfunded. They now carry the full cost of a problem they did not create. Boards that issue large special assessments without presenting alternatives often face owner pushback and, in some cases, litigation.
THE SOLUTION
Condominium Lending Group lends directly to the condo corporation. The corporation uses those funds to complete the required repair or cover the shortfall, and repays the loan over time through monthly contributions collected from unit owners as part of common expenses.
The loan is made to the corporation, not to individual owners. No security is registered against individual unit titles. Owners do not provide personal financial information or guarantees. Their financial obligation is limited to their proportionate share of the monthly repayment, which is a fraction of what a direct special levy would cost.
For a 100-unit building facing a $500,000 project, a direct special assessment means $5,000 per unit. A condo corporation loan repaid over 10 years typically costs each owner between $50 and $80 per month.
THE PROCESS
Most corporations receive an initial response within one business day. Here is what the process looks like from first contact to funded.
Reach out with a brief description of your building, the financing need, and your timeline. You do not need final pricing or a confirmed project scope to start the conversation.
We review your reserve fund study, financial statements, and project details. Most corporations receive an initial response and preliminary financing overview within one business day.
Once the financing structure is confirmed, your board presents the terms to unit owners. We provide the repayment summary, the per-unit monthly impact, and the documentation the board needs to run a clear and compliant borrowing bylaw vote.
Once the bylaw is approved, funds are advanced directly to the corporation. Repayment begins through monthly common expense contributions.
WHO WE WORK WITH
The different types of corporations that Condo Lending works with across Canada.
Registered condo corporations in Ontario, BC, and Alberta facing reserve fund shortfalls, unexpected repairs, or capital projects where the cost exceeds available reserve funds.
BC strata corporations dealing with a strata special levy or contingency reserve fund shortfall. Financing works the same way under the Strata Property Act as it does under the Condominium Act.
Mixed-use condo corporations with commercial components qualify for the same financing structures as residential corporations. The presence of commercial units adds complexity to the governance evaluation but does not disqualify a corporation. Contact our team to discuss the specific structure of your building.
No. The loan is made to the condo corporation as a legal entity. It does not appear on any unit owner’s personal credit report and has no effect on their credit score or borrowing capacity. Owners are not asked to provide personal financial information. Their obligation is limited to their proportionate share of the monthly common expense increase used to repay the loan.
Yes. To pass a borrowing bylaw, the board first approves it, then it goes to a vote of all unit owners. The threshold in Ontario is a majority of all owners in the corporation — not just those present at the meeting. That means 50% of units plus one must vote in favour. We provide the documentation and financing summaries your board needs to present clearly to owners before the vote.
Yes. A condo corporation loan does not prevent unit sales. The existence of the loan is disclosed as part of the Status Certificate when a unit is sold, which is standard practice for any material financial obligation of the corporation. Maintaining competitive condo fees after implementing a loan is an important consideration for boards, but the loan itself does not restrict sales.
They are the same concept under different legislation. A special assessment is the term used in Ontario and most provinces under the Condominium Act. A strata special levy is the term used in British Columbia under the Strata Property Act. Both create the same financial burden on unit owners. Condominium Lending Group provides financing for both, structured around the governance requirements of each province.
Most corporations receive an initial response within one business day. For reserve fund or special assessment financing, the full process from initial contact to funding typically takes 2 to 4 weeks. Having your reserve fund study, current financial statements, and project details ready at the outset shortens the timeline. Contact us early. Boards that engage a lender before finalizing their communication to owners are in a much stronger position.
GET STARTED
There is no cost to the initial conversation. Tell us about your corporation and we will walk you through your financing options — no pressure, no obligation.
