Strata Corporation Financing In Vancouver, BC

Strata Corporation FinancingUnique financing available to strata corporations looking to finance large repairs, upgrades, retrofits, or maintenance projects for the strata common property. This is an alternative to mortgage financing since by law you cannot mortgage strata owned common property. The financing is set up as a loan secured by way of future strata fee revenue. The loan is very flexible, can be up to $10 million and have an amortization of up to 25 years.

This type of loan is perfect for both strata corporations and the individual owners. It brings financing stability to any project since each owner instantly qualifies.  It is an alternative to a special levy where each owner has to find their own financing by way of:

  • Cash: Savings or Investments
  • Line of Credit: Unsecured
  • Home Equity Line of Credit: Secured to a Property
  • Refinance: Existing First Mortgage
  • First mortgage: New Traditional or Non-Traditional Mortgage
  • Second mortgage: Private Financing
  • Third mortgage:  Private financing


With the millions of dollars spent on fixing the leaky condo developments built in the 1980’s and 1990’s, the British Columbia government had offered home owner interest free loans which allowed these owners to stay in their homes rather than being financially strapped or being forced into bankruptcy. With the high demand, these loans dried up in 2009.  A new financing program was in need to make sure many more buildings would be able to finance the urgently needed repairs. A few financial institutions started offering amortized loans at market value directly to the strata corporations themselves. Fast-forward to 2015 financing strata corporations for major projects has become big business!

Why Financing is in Demand

There are a few reasons:

  1. Many strata run residential complexes with limited reserve funds are getting older and the life cycle of the plumbing, roofs, exterior finishes etc. are over and in need of immediate attention.
  2. Over the years, many strata corporations and their individual owners failed to address building envelope and other maintenance issues in the infant stages, now they have no option but to move forward on large projects to save their property values from plummeting.
  3. This type of funding allows the strata corporation and individual owners flexible and affordable options to expensive levies and special assessments. This allows owners to stay in their homes and projects get the ¾ vote to go ahead with the work needed.
  4. Depreciation Reports: in December of 2011 BC Housing made it a new requirement for strata corporations to obtain a depreciation report every 3 years unless the corporation is less than 4 units or an annual meeting with a ¾ vote by the owners in favor of waiving the requirements.  These depreciation reports are a good snap shot produced by an independent body giving vital information to the physical inventory of common property and other assets, anticipated maintenance, repairs, upgrades, retrofits etc. over the next 30 years. These reports provide very useful information to the current owners, property management companies, realtors, prospective buyers & mortgage and insurance companies.

It is thought that within a few years, if there is not a valid depreciation report on file with a building it will be red flagged by both mortgage and insurance companies and resale values will plummet.  Mortgage lenders are also looking to offset their risk on lending on a building by charging a mortgage client a higher interest on the loan.

Benefits to Strata Corporation

Flexible financing for each strata corporation’s unique needs:

  • Loan is funded directly to the strata corporation, so no delay in work or scheduling due to waiting for individual owners to get approved for funds.
  • Loans are spread over the life of a project; this keeps it affordable for individual owners in every situation.
  • Easier to get owners on board to pass a ¾ vote to start a project.
  • Preserves existing reserve funds
  • No personal guarantees
  • No title charge
  • Loan is renewed at fair market rates
  • Easier to manage future budgets and cash flow
  • Efficiencies are gained by contractor’s only setting up once to complete multiple facets of a project.
  • Up to 100% financing of the project cost
  • Several projects can be completed at once
  • Loans for established or new strata’s
  • Plans available for strata corporations of all credit profiles.

Benefits to The Strata Owners

Convenient financing options to keep people in their homes:

  • Allows owners to finance a special levy monthly through the strata loan, or the traditional way by a few installments as proposed by the strata or in full.
  • Lessens impact on owners’ savings or level of debt.
  • No personal credit application or guarantee required.
  • Allows the cost of major repairs to be passed to future owners who benefit from the work as well.
  • Individual owners are instantly approved
  • Immediate increase to resale value
  • Easier for future buyers to obtain mortgage financing

Up to 100% Project Financing

Virtually any project can be financed that involves supplies or installation including:

  • Repairs/ Maintenance
  • Upgrades to equipment/ Energy retrofits
  • Remodeling
  • Soft costs like consulting, lawyers, engineers, etc.

Examples of some Strata Common Property Projects We Finance

Window upgrades Skylights
Heating & Air Conditioning Chimneys
Roofing Elevators
Security systems Exterior Cladding
Balcony Upgrades/Replacement Painting
Garage Doors Stucco
Car-park upgrades & coatings Acquisition of Care Taker Suite
Plumbing retrofits Waste Management
Fire retrofits Paving
Lighting retrofits Landscaping
Fitness Equipment Fencing
Insurance Deductible Computer/ Software

* = Required Field