Refinancing a Condo Corporation Loan

Refinancing a loan made to a condominium corporation at a lower interest rate can save money, even if there is a pre-payment penalty. Loans can be a practical option for communities where owners cannot fund higher monthly fees or a special assessment. However, loans should not be used as a solution for paying for income shortfalls due to pandemic-related or other operational expenses. Instead, other ways to reduce expenses or increase monthly fees should be considered.