Individual Private Lenders
Use your registered accounts or locked-in plans to invest in mortgages
Through CWB Trust Services' Arm’s Length Mortgages, an individual private lender can maximize funds from registered accounts (e.g. RRSP, RIF, TFSA, LIRA, LIF, etc.) with very few restrictions, by investing in mortgage funding solutions. The borrower then makes mortgage payments back into the lender's registered account, and pays the lender interest on the amount borrowed.
Application to funding in five easy steps
- The lender opens a CWB Trust Services self-directed registered account (e.g. RRSP, TFSA, RRIF) and funds the account.
- The lender sends completed copies of CWB Trust Services Investing in an Arm’s Length Mortgage and Instruction to Solicitor forms to their lawyer to detail the mortgage’s terms.
- The lender’s lawyer conducts the required investigation on the property, drafts the mortgage documents, and sends a request for funding.
- CWB Trust Services receives the paperwork from the lender’s lawyer and issues funds to the lawyer from the lender’s registered self-directed account.
- The lawyer sends CWB Trust Services a final report with the registered mortgage, title certificate, insurance binder, and if required by the lender, title insurance.
Deposits held in CWB Trust Services’ registered accounts (ie. RRSPs, RIFs, TFSAs, LIRAs, and LIFs) are eligible for CDIC insurance coverage of up to $100K CAD equivalent. For more information about CDIC coverage, please visit the CDIC website.