With interest rates at record lows, now may be the best time to refinance a loan made to your condominium corporation.
When a corporation’s existing loan is at a higher rate, refinancing can save money even if there is a pre-payment penalty.
Borrowing money may be a more practical option in communities where owners are unable to fund or finance higher monthly fees or a special assessment.
Loans can make sense to address major expenses to reduce overall costs or provide value. They should be avoided as a solution to paying for an income shortfall due to pandemic-related or other operational expenses.
Loans intended to address an income shortfall, or condo fees being too low, must be addressed in other ways that reduce expenses or increase monthly fees.