What are the terms of the loan?
Every file is different, but loans are generally made over a period of 1 to 5 years at a rate comparable to that of a personal line of credit at major financial institutions. Loans are repayable in full at any time, with no fees or penalties.
What are the advantages for co-owners?
For co-owners, the Capital RPK program offers a financing opportunity to those who do not have cash available at the time of contribution and whose borrowing options are limited or more expensive. One of the advantages for co-owners is that assessment funding directly from the condominium association does not affect the borrower’s credit rating.
What is the cost for the co-owners who pay the special contribution without financing it with Capital RPK?
No. When issuing a notice of special assessment, each co-owner decides whether or not to appeal for this financing. Those who do not use the funding do not pay anything.
However, by using Capital RPK, the syndicate makes sure that all co-owners are able to pay the special contribution on time. This allows work to start on time and ensures fairness between all co-owners.
What are the benefits for the syndicate?
The financing option offered by Capital RPK costs nothing to the syndicate or to the co-owners who do not use the financing. Only those who decide to fund their membership fee incur an additional cost, which translates into an interest rate on the amount funded.
For the syndicate, there is no additional risk because it has all the usual remedies in the event that a co-owner does not make his monthly repayments. This option gives it greater flexibility in terms of its cash flow and the possibility of obtaining the amount of contributions in time for the implementation of projects.