Frequently asked questions

Eligibility

  • We welcome applications from a broad range of clients, including first-time buyers and investors. While we follow responsible lending practices under the CCCFA, our criteria are flexible. A guarantee may be required for loans made under a business or trust structure.

  • No. Pro Fund Me loans are only available for new homes built by The Building Collective. Our model relies on collaboration with developers and builders, who help fund the loans.

Pro Fund Me loans

  • Pro Fund Me provides clients with the option to borrow up to 10% of the value of their new home for approved builds. This loan has a 1% interest rate, fixed for 30 years. With a pre-approval letter from Pro Fund Me, clients can use this loan alongside their own savings when seeking a mortgage from main lenders. This may reduce the amount needed from the bank and improve the overall terms of their mortgage application.

  • You can borrow up to 10% of the home’s value, subject to approval.

  • We can offer these favourable terms due to partnerships with builders and material suppliers. Builders contribute a portion of their profits from new home sales into Pro Fund Me, allowing us to offer low-cost loans to buyers.

  • The 1% fixed interest is used to cover the costs of administering and managing the loan. Pro Fund Me operates with low overheads, ensuring that the loan structure is sustainable and affordable for borrowers.

  • Pro Fund Me loan borrowers grant Pro Fund Me an Equitable Mortgage which Pro Fund Me secures with a lodged caveat over the property. This is recorded behind the main bank’s first mortgage. The caveat ensures Pro Fund Me’s interest is protected, but it does not give the right to enforce a mortgagee sale. The loan remains in place throughout the 30-year term unless the property is sold, and/or loan repaid in full.

  • Only approved mortgage brokers can facilitate Pro Fund Me loan applications. We currently work with brokers from Vega Group and Newpark Financial Services. You can register on our website to connect with one of our approved brokers. In future we aim to have an inclusive program that all eligible financial advisors can access for their customers.

  • Yes, Pro Fund Me is the lender. We provide the loan directly to borrowers, while Neo Prime Limited manages servicing and administration.

  • With Pro Fund Me, you pay much less in interest because the rate is just 1%, compared to higher bank rates. This can help make buying a home more affordable by reducing the amount of money you need from the bank.

  • Apart from the 1% interest, there may be some small fees involved when you first set up your loan, like a documentation or settlement fee. These will be clearly explained to you before you take the loan, so there won’t be any surprises. They can also be found in a fees schedule.

  • No, the Pro Fund Me loan is designed to make it easier for people who may not have a large deposit. The loan helps reduce the amount you need to borrow from your main bank, but you still need some of your own savings or deposit to buy a home.

  • The main cost of your Pro Fund Me loan is the 1% fixed interest rate over 30 years. There may also be some small fees involved when the loan is set up, like a documentation or settlement fee, but these will be clearly explained to you before you sign the loan agreement. We aim to keep all costs as low as possible and provide full transparency on any charges.

Repayments

  • Pro Fund Me partners with Neo Capital Holdings Limited, which handles loan administration and repayment collection. Borrowers can access an online platform provided by Neo Prime to view their balance and manage payments.

  • Your repayments will be made to Pro Fund Me, with Neo Capital Holdings Limited managing the collection of repayments on our behalf.

  • Yes, Neo Capital Holdings Limited provides an online platform where you can manage your Pro Fund Me loan repayments.

  • Yes! You can pay off your Pro Fund Me loan early at any time without penalties. This means you won’t be charged any extra fees if you choose to repay the loan faster than 30 years. Normal other fees may still apply. Please refer to our fees schedule.

  • If you miss a payment, it’s important to contact Pro Fund Me or Neo Capital Holdings Limited as soon as possible. We will work with you to find a solution. Missing payments may affect your ability to borrow in the future, so it’s best to keep up with payments or talk to us if you’re having trouble.

Changes in circumstances

  • When the property is sold, the Pro Fund Me loan must be repaid, similar to the main/first mortgage.

  • If you refinance with a different bank, the Pro Fund Me loan will remain in place. You'll need to include the details of the Pro Fund Me loan in your new mortgage application.

Loans and mortgages

  • A mortgage is a type of loan used to buy a home. When you get a mortgage, the bank lends you money to pay for the house, and in return, you agree to pay the loan back over time, with interest. The bank also takes a legal claim over your property (called a "first mortgage") until the loan is repaid.

  • A caveat loan is a loan where the lender (like Pro Fund Me) registers an interest in your property, but it doesn’t give them the right to force a sale. It just means that when you sell the property, the loan must be paid off before you can fully transfer the property to someone else.

  • A fixed interest rate means that the rate you pay on your loan won’t change. With Pro Fund Me, the interest rate is fixed at 1% for the entire 30 years of the loan, which gives you certainty about what you’ll pay.

  • Pro Fund Me offers you a loan of up to 10% of your new home’s value at a low interest rate (1% fixed for 30 years). This loan works alongside your main bank loan, but it’s smaller and costs less.

  • Yes! We encourage you to speak to one of our approved mortgage brokers or reach out to us directly if you have any questions. We want to make sure you fully understand how the loan works before you sign up.

  • An equitable mortgage is when you give Pro Fund Me an interest in your property without registering a full second mortgage. Instead of registering a second mortgage on the property title, we use a caveat as security.

    A caveat is a legal notice on the property’s title that ensures Pro Fund Me’s interest is protected. It means that if you sell your property, the Pro Fund Me loan must be repaid. However, unlike a second mortgage, a caveat does not allow Pro Fund Me to force a sale of your home if you miss payments.