Strata FinancesJuly 9, 2026 · 7 min read

Strata Loan, Special Levy, or Higher Fees? How BC Stratas Fund Big Projects

A special levy isn't the only way to fund a big repair. Here's how a special levy, higher strata fees, and a strata loan compare for BC buildings — and how to qualify to borrow.

When your building faces a six-figure repair — a new roof, repiping, a failing elevator, or building-envelope work — the money has to come from somewhere. In BC, a strata corporation really has three levers to pull: charge a one-time special levy, raise strata fees to build up savings, or take out a strata loan and repay it gradually. Each spreads the cost differently, and the right choice depends on how urgent the work is, how much your owners can absorb at once, and how healthy your contingency reserve already is.

For a boutique building — the under-150-unit stratas we manage across Metro Vancouver and the Fraser Valley — this decision is especially personal. Fewer owners means a big repair bill divides into larger individual shares, so getting the funding approach right genuinely matters.

Where the big number comes from

Most major projects don't arrive as a surprise. They show up in your depreciation report — the long-range plan that maps out when big components will need replacing and roughly what they'll cost. If your report flags that the roof is near end-of-life or the CRF is thin, that's your cue to start planning the funding, ideally years before the invoice lands. (If your report says you're behind, our guide on what to do when your depreciation report says you're underfunded walks through the next steps.)

The other number that matters is what's already sitting in your contingency reserve fund (CRF) — the strata's shared savings account. A well-funded CRF can absorb part or all of a project on its own, shrinking whatever levy, fee increase, or loan you need to cover the rest.

Option 1: The special levy (pay it all now)

A special levy is a one-time charge on top of regular strata fees, raised for a specific project and approved by owners — for a standard levy shared out by unit entitlement, that means a 3/4 vote at a general meeting. Once it passes, every owner owes their share, whether they voted for it or not.

The upside: it's clean and final. The strata raises exactly what it needs, does the work, and there's no ongoing debt or interest cost. It's also the fastest route when a repair is urgent.

The downside: a large lump sum can be brutal on owners who don't have the cash on hand, and there's no hardship exemption in BC — owners have to find their share one way or another. If a levy would put real strain on your neighbours, it's worth reading options for owners who can't afford a special levy before you finalize the plan, because those pressures often push councils toward borrowing instead.

Option 2: Higher strata fees (save ahead in the CRF)

The quieter, longer-game option is to raise regular strata fees and steadily grow the contingency reserve so the money is there when the project arrives. Instead of one painful hit, owners pay a bit more each month for years.

This is the option prevention is built on. BC has tightened the rules around minimum CRF contributions and depreciation-report planning, so many stratas are already contributing more than they used to — see our summary of the new contingency reserve fund rules and our guide to how much a strata's contingency fund should be. Steady contributions are what your strata fees are partly meant to cover in the first place.

The catch: saving ahead only works if you start early. If the roof is failing now, you can't retroactively fund it through modest monthly contributions — that's precisely when a levy or a loan becomes necessary. Think of higher fees as the strategy that keeps you out of the other two.

Option 3: A strata loan (borrow now, repay over time)

A strata loan is money borrowed by the strata corporation itself — not by individual owners — to pay for a major project up front. The corporation then repays the lender over several years, usually by folding the payments into strata fees or by structuring the special levy as a series of instalments rather than one lump sum. There are lenders in Canada that specialize in exactly this kind of financing.

For a lot of buildings, this is the middle path that solves the affordability problem. Instead of demanding a large cheque from every owner at once, the work gets done immediately and the cost is spread across time — and across future owners who'll also benefit from the new roof or elevator, not just whoever happens to own on levy day.

What you give up is the interest cost, and the loan still needs owner approval — borrowing generally requires a 3/4 vote, so it isn't something council can arrange alone. Owners who can pay cash sometimes prefer a levy to avoid paying interest, so many stratas offer a hybrid: those who want to pay their share upfront can, and the balance is financed. It's a good idea to confirm the exact approval threshold and mechanics with a strata lawyer, because the wording of the resolution matters.

How a BC strata qualifies for a loan

This is the part owners are most surprised by: a strata corporation can borrow much like a small business can, and lenders assess the strata's financial health rather than any single owner's credit. Broadly, a lender will want to see:

A specific, costed project — a defined scope with real contractor quotes, not a vague wish list.
Owner approval — a passed resolution (typically the 3/4 vote) authorizing the borrowing.
Healthy strata finances — reasonable reserves, a sensible budget, and low arrears. A building where lots of owners are behind on fees is a red flag.
The strata's collection power — lenders lean on the fact that a strata can legally levy owners and, if needed, lien a unit to recover unpaid amounts, which makes the loan relatively secure.
Adequate insurance and governance — up-to-date insurance and clean records signal a well-run corporation.

Small buildings sometimes worry they're too little to borrow. Some lenders do set minimum loan sizes, but boutique stratas absolutely qualify for financing when the fundamentals are sound — and a well-organized set of financials makes the application far smoother. Exact terms, rates, and amortization periods vary by lender and change over time, so treat any figures you hear as a starting point and get current quotes before you take the plan to owners.

Which mix fits your building?

There's no single right answer, and the best plan is often a blend. A common approach: draw part of the cost from the CRF, cover part with a modest levy for owners who can pay, and finance the rest with a loan repaid through fees. Ask three questions:

How urgent is it? Emergency work leaves less room to save ahead — it's levy or loan.
Can owners absorb a lump sum? If a big cheque would cause hardship across the building, borrowing spreads the pain.
What's fair across time? If future owners will benefit as much as current ones, financing shares the cost more evenly.

The honest conversation to have — well before the resolution is written — is which of these your owners can actually live with. That's a conversation your strata manager should be helping you run.

This article is general information about the BC Strata Property Act, not legal or financial advice. Approval thresholds, loan terms, and CRF rules change and turn on your own bylaws and facts — confirm your situation with a strata lawyer, your lender, and a financial advisor.

Frequently asked questions

Can a strata in BC actually take out a loan? Yes. A strata corporation can borrow money to fund major work, with owner approval — generally a 3/4 vote. The corporation is the borrower, not individual owners, and repayment is usually built into strata fees or a staged levy. Confirm the exact process and wording with a strata lawyer.

Is a strata loan better than a special levy? Neither is universally better. A levy is cheaper (no interest) and final, but demands cash from every owner at once; a loan costs interest but spreads the hit over years and across future owners. Buildings where a lump sum would cause widespread hardship often lean toward borrowing.

Do individual owners have to qualify for the strata loan? No. Lenders assess the strata corporation's finances — its reserves, arrears, budget, and collection power — not each owner's personal credit. That's what makes borrowing viable even when some owners couldn't personally finance their share.

What if we haven't saved enough in the contingency fund? Then the shortfall gets covered by a special levy, a loan, or a combination. Going forward, raising regular fees to rebuild the CRF is how you avoid facing the same scramble on the next big project.

Does raising strata fees need the same vote as a levy? Generally no — the annual budget (which sets fees) passes by majority, while a special levy or borrowing typically needs a 3/4 vote. Because rules and thresholds change, confirm the specifics for your building with your manager or a strata lawyer.