Body Corporate Finance
Smart, stress-free funding for your unit titled building's urgent repair, upgrade or compliance needs.
Our Solution
What is Body Corporate Finance?
Body Corporate Finance is the provision of a loan to the Body Corporate of a unit titled building. Loans can be used to fund:
- Weathertightness remediation and façade repairs
- Seismic strengthening and structural works
- Lift upgrades, roofing, plumbing, and electrical
- Green initiatives (solar, EV chargers)
- Fire safety and compliance works
- Insurance premiums, legal or professional fees
- General maintenance and refurbishments.
As an alternative to large one off or progressive special levies need to build up a remediation fund, Body Corporate Finance provides funding to ensure the project can get underway without delay. The Body Corporate then raises levies from owners to repay the loan over the term of up to 10 years.
No personal guarantees.
No mortgages over individual units.
No individual credit checks.
Benefits of Body Corporate Finance
- Start Works Immediately: Projects can proceed without delay, protecting your building from further deterioration and avoiding cost escalations.
- No Personal Guarantees or Mortgages: Owners are not required to provide personal guarantees or provide mortgages over their individual units.
- Ease Cashflow Pressure: Avoids raising up front special levies while allowing repayment of the loan over the loan term of up to 10 years.
- Preserve or Increase Property Value: Prompt repairs and upgrades safeguard the long-term value and marketability of your property.
- Simple Process with Full Support: MOD Finance provides documentation and AGM-ready presentation packs to support decision making.
What is the impact on your Project due to funding issues?
- Project Delays = Higher Costs: Construction costs increase each quarter while defects can deteriorate further.
- Special Levies Can Force Sales: Sudden, large levies can create financial distress, forcing owners to sell at a significant discount to market value.
- Property Value Declines: Neglected repairs reduce desirability, impacting sales and rental returns.
- Legal & Compliance Risk: Non-compliance with building safety standards can result in significant liability and insurance challenges.
- Owner Stress: The requirement to meet large up front levies can cause financial stress to owners and impact the relationships within the building.
What Is the Process?
- Submit a Fact Find: Tell us about your Body Corporate, your project and funding requirement.
- Receive an Funding Proposal: A tailored Funding Proposal will be issued within 48 hours.
- Hold a Committee Meeting (AGM/EGM): Use our ready-to-present materials to inform and educate owners.
- Loan Approval & Documentation: Once approved, formal documentation is completed.
- Drawdown Funds and Begin Works: Funds are advanced and projects can commence without delay.
