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Dealing With Financial Shortfalls

Toronto Condo News
Publication date:
January 25, 2019
Article Summary: 

Condo boards must make difficult decisions when managing a corporation with a financial shortfall due to condo fees exceeding what is spent. The only practical alternatives are a special assessment or loan, which can be a positive development. However, there are costs to a condo loan and borrowing money. Reserve fund studies estimate when building components need to be replaced or repaired based on lifespan. A condo loan can provide a way to undertake certain projects sooner without negatively impacting on condo fees.

It can be used to redirect some reserve fund monies to window and door replacement, defer less urgent projects, and obtain a condo loan for the remainder. This could provide an overall savings for the corporation and residents, without an impact on condo fees. Refinancing an existing mortgage at a lower rate could save thousands of dollars over the life of the mortgage.


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Source Citation: 
Toronto Condo News
Dealing With Financial Shortfalls
January 25, 2019
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