What is Strata Finance?
What can a strata loan be used for?
For Strata Managers
Your Questions Answered
Is this a personal loan against my name?
No, the loan is taken out by the owners corporation or body corporate. It is an unsecured loan and no personal guarantees are required.
What happens if not everyone agrees?
To proceed with a loan it must be agreed upon at a general meeting. If the resolution is passed then all owners will make contributions towards loan repayment through their levy payments.
What happens if I sell my property?
If you sell, the new owner will take on the levy payments therefore continue to pay towards the loan.
As this is unsecured, who is responsible for the loan?
The owners corporation or body corporate is responsible for the debt and ensuring loan repayments are made.
What happens if I want to repay the loan early?
The entire loan can be paid early with no penalty (except if the loan is in a fixed interest rate period). This needs to be agreed upon by the owners corporation or body corporate and once given this directive we can organise the rest.