Buying in a Strata with remediation projects outstanding?
As strata complex start to age, upgrades will be required. Some with remediation projects and other large expenses. The challenge can be in getting approved for a mortgage while the project is still in process.
Many lenders will not lend money on strata complexes where large scale projects such as drainage, water ingress, crawl space repairs, roofs and other envelope or building related are being done. This can be especially true if you are trying to put 5-20% down. There are certainly exceptions to every property, Lenders like to see a remediation project is complete, with warranty and completion letter in place. Some lenders, who don't ask for minutes or AGM's when they approve you, will be your best option.
If the property is "flagged" at the insurer (CMHC or Genworth) already with projects on their radar, you can expect a long and arduous process to get all the documents to them to prove it's complete.
So before you put in your offer on your dream home, check the Annual General Minutes and ask your Realtor if there are any outstanding remediation projects either upcoming or in process. If there is, please give me a call to discuss where is the fastest and easiest place to get the mortgage...as your options WILL be limited.
Kiki Berg, Mortgage Expert