Resources for mortgage brokers · 3 min read
Condos and Bill 16: What the Mortgage Broker Should Check
For a condo, the unit's condition tells only part of the story. The health of the building and its finances can change a borrower's ability to pay overnight. Bill 16 finally provides tools to measure it.
What Bill 16 changed
Adopted in 2019, the reform of condominium law came fully into effect with the regulation in force since August 14, 2025. Condo syndicates must now have a maintenance log prepared and obtain a contingency fund study. Existing condominiums have until August 15, 2028 to comply.
The regulation also provides for a syndicate certificate, which reports on the state of the finances and the building and which the syndicate must be able to provide to any seller who requests it. For the mortgage broker, these documents are a valuable source of information. They're presented in our inspection guide for mortgage brokers.
The maintenance log and contingency fund study
The maintenance log describes the building's common portions and plans their upkeep and replacement. The contingency fund study relies on that log, notably on the work planned over 25 years for the common portions, to recommend how much the fund should hold at the start of each year and the amounts to contribute.
Together, these documents show whether the syndicate is properly preparing for major upcoming expenses: roof, underground garage, windows, balconies, mechanical systems. A fund well below the study's recommendations often signals an increase in condo fees or a special assessment.
The syndicate certificate
The syndicate certificate gives the buyer, and their broker, a picture of the condominium's situation: state of the finances, planned work, condition of the building. It helps identify, before buying, items that would otherwise have been discovered after signing.
We detail what to look for in what the syndicate certificate reveals. For the borrower, it's often the document that most directly answers the question of future expenses.
When a condominium hasn't yet completed its first study, which is still common before the 2028 deadline, the certificate and recent minutes become even more important. They're often the only structured information available about planned work.
The special assessment risk
A special assessment is an amount required of co-owners, on top of regular fees, to fund an expense the contingency fund doesn't cover. It can represent several thousand dollars per unit, sometimes more, and it often arrives shortly after a meeting decision.
For a borrower who bought at the top of their capacity, a special assessment can create real hardship. Spotting this risk before buying, in the minutes, the study and the certificate, is part of the advice. We explain it in special assessments as a borrower risk.
Inspecting the unit and common areas
A condo inspection focuses first on the private portion: windows, plumbing, ventilation, wiring, signs of leaks or condensation. The inspector also examines accessible common areas, especially the underground garage, which often reveals the building's overall upkeep.
The inspector's findings and the syndicate's documents complement each other: the inspection shows the real condition of what's visible, the documents show how the syndicate plans to maintain it. On the real estate broker's side, see seller declarations and the broker's role.
An example: two condos, two files
Two borrowers are each looking at a condo at the same price in the same neighbourhood. In the first building, the contingency fund study is current, the fund meets its recommendations and the certificate mentions no planned assessment. In the second, the fund is a fraction of what the study recommends, and the minutes have mentioned redoing the underground garage for two years.
On paper, the two purchases are equivalent. In reality, the second borrower risks paying a significant assessment in the coming years. A mortgage broker who has read the documents can reflect this in their advice: a safety margin, a revised target price or the choice of building.
This kind of comparison is exactly what Bill 16 made possible. Before the reform, the information often didn't exist in usable form; today, the broker who takes the time to read it gives their client a genuine advantage.
Requesting documents early
Reading the syndicate's documents takes time: maintenance log, contingency fund study, recent minutes, financial statements, certificate. They must be requested as soon as the offer is accepted, so the borrower and their mortgage broker have time to analyze them before the financing deadline.
To arrange a condo inspection including accessible common areas, see our page for partner brokers. Our consumer article on common areas and the contingency fund can also be passed on to the borrower.
