Pro Funds Equity Program

Be part of an exciting program to qualify for a 5% interest mortgage in second position up to 95% LTV.

Pro Funds Mortgages is excited to release a ground breaking new mortgage product called Pro-FEP™ (Pro Funds Equity Program). Pro-FEP™ is an exciting program that will allow borrowers access to a second or third mortgage at 5% interest only payments for up to 95% of the property value. This rate and loan to value is unheard of with traditional banks or private lenders!

To be eligible to participate in the Pro Funds Equity Program, borrowers must lend from their registered plans with an amount equal to what they are borrowing. Funds held in RRSP, LIRA, RIF, LIF and TFSA are eligible for the program. Participants in Pro-FEP™ will act as both a borrower and a lender.

The Pro-FEP™ program is effectively a pool of investors who wish to borrow and lend at 5% interest for a 1-3 year term. Pro-FEP™ will allow investors to access their registered funds without actually removing the funds from their plan, borrow at extremely competitive rates, and earn a return of 5% in the plan for the length of the term in the program!


Pro-FEP™ was designed to assist our clients in realizing their wealth and lifestyle goals by growing their real estate investment portfolios. Since Bank lending guidelines have changed significantly throughout the past few years, many investors have been limited on pursuing their real estate focused endeavours. Traditional Bank lenders will only refinance up to 80% of a property value and borrowers must meet cumbersome qualifying guidelines when it comes to income and debt servicing. More and more borrowers are finding it a challenge to conveniently access the equity in their properties.

With many years of knowledge and expertise in private lending, Pro Funds Mortgages has developed a unique Equity program that will allow investors to borrow privately at only 5% interest. Participants in this program will have the ability to utilize private money to pursue their real estate goals that otherwise may not be available. In Pro-FEP™ , investors will be able to access a greater percentage of their property’s equity at lower rates, and with less onerous and time consuming guidelines.

Through this program, our objective is to allow our clients to leverage additional funds in an expedited financing process in which they will be able to use for investment related purposes such as a down payment on an investment property, the purchase of additional properties, or to invest in a mortgage to create monthly cash flow. All of this is possible, provided borrowers have registered funds in a self-directed registered plan available to lend out in the amount equal to what they wish to borrow.


In order to be eligible for the program, participants must: (1) have registered funds available in a self-directed plan, (2) have a property with equity equal to or greater than the amount available in their registered funds, and (3) participants must also agree to lend their registered funds at an equal amount to what they are borrowing. In order to participate in this Equity program the borrower must lend their registered funds to another arm’s length investor prior to borrowing. The 5% interest is a fixed rate and applies to both the lending and borrowing of funds. Each participant will also have the option to select their desired length of term. Each participant can select from 1-3 years to borrow and lend.

In Pro-FEP™ , Pro Funds Mortgages will manage a pool of investors who are looking to participate in the program. There will be a screening process where each applicant is qualified based on their credit score, net worth and annual income in addition to a review of the purpose of the loan. Along with this, real estate being pledged as security, prior debt on the property, and the loan to value (debt to equity ratio) of the property will be qualified. Typical bank criteria does not apply. The approval process is based on the big picture and the security to the lender.

Once the approval process has been completed, each participant will have the ability to lend their funds and then borrow from different members in the program. The Pro-FEP™ program will follow the regular mortgage underwriting investment protocol and therefore each party in the program is a lender and will have the opportunity to review due diligence materials and approve their Pro-FEP™ mortgage loan prior to their commitment.


A Pro-FEP™ specialist/underwriter will review participants borrowing needs and availability of registered funds. Just as with any mortgage approval process, an application will be required along with confirmation of income (self-employed, retired, business owners accepted), a current mortgage statement and confirmation of property value. Appraisals are not necessary if the value can be verified by an MPAC assessment, local market data, and realtor’s opinions of value and or a CMHC approved mortgage from a bank identifying the value in which they are lending on.

The next step is to confirm that registered funds are available to lend through a self-directed plan that will allow for mortgage investments through our selected trust company, Community Trust. Pro Funds Mortgages will also assist all participants in arranging the transfer to Community Trust if required.

Please note that when lending registered funds, they will never be removed from the plan, therefore there are no tax implications. Throughout the program, the 5% interest earned will be deposited monthly into the plan holder’s account. Once the program term is completed, the registered funds will be directly deposited back into the original plan holder account.

Once the details surrounding the length of the term, security, borrower, and the loan amount have been finalized, Pro Funds Mortgages will draft mortgage commitment documents. Ultimately lenders in the program must be comfortable with proceeding on their mortgage investment as Pro Funds Mortgages cannot guarantee these mortgages. Please note that the Pro-FEP™ Equity cannot be amongst related parties and must be arm’s length. This is based on criteria mandated by the plans trust and Canada Revenue Agency.

All transactions will be closed through a law firm. The lender’s registered funds will be registered on the borrower’s chosen property. In this program, each participant will pay their own legal fees. If the mortgage size is $50,000 and under, one lawyer can represent both parties and the legal fees can be shared.
Each lender in the program will earn interest on their registered funds at 5% and each borrower in the program will pay 5% interest only payments. The lender’s monthly interest only payments will automatically be directed into the registered plan account.

Finally, a broker fee will be applicable to each Pro-FEP™ participant for facilitating the program. The fee applicable for each borrower in the transaction is $2,000.00 for investments under $100,000. For investment amounts $100,000 and larger, a 2% fee will be applied. This will be deducted from the advance of funds on closing through the law firm.

Once this transaction is completed, borrowers are now able to leverage their existing real-estate and their registered funds to access cash for new investment opportunities. This traditionally would be difficult to finance with the Banks criteria and is offered at a great interest rate!