\n
Default risk \u00e2\u20ac\u201c<\/strong> If the borrower defaults, recovery requires legal action or property resale.<\/p>\n<\/div><\/li><\/i><\/span>\n
Liquidity \u00e2\u20ac\u201c<\/strong> DMIs typically require a one-year minimum and cannot be sold before term.<\/p>\n<\/div><\/li><\/i><\/span>\n
Concentration risk \u00e2\u20ac\u201c<\/strong> Unlike a MIC, your return is tied to one borrower and one property.<\/p>\n<\/div><\/li><\/ul>Mitigating risk depends on strong underwriting, low loan-to-value ratios, and reliable home property appraisals.<\/span><\/p>\n<\/div>The Hosper DMI Program<\/h2><\/div>For investors who prefer hands-on mortgage investing, Hosper offers a structured Direct Mortgage Investment program in Ontario.<\/p>\n
Key features:<\/p>\n<\/div>
- <\/i><\/span>
\n
Loans secured directly on title.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Yields up to 14% depending on risk level.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Wide choice of loans each month.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Managed by mortgage professionals who handle compliance and enforcement.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Monthly interest income (unless borrower issues delay payments).<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Cash-only investment (no RRSPs or TFSAs).<\/p>\n<\/div><\/li><\/ul>
Hosper also applies its Paragon Process, a system of accredited appraisers, strict underwriting, and renovation partners to maximize recovery if a borrower defaults.<\/p>\n<\/div>
MIC vs DMI: Key Differences<\/h2><\/div>\n
.custom_table table {
\nwidth: 100%;
\ntable-layout: fixed;
\nborder-collapse: collapse;
\n}
\n.custom_table th,
\n.custom_table td {
\npadding: 8px;
\nvertical-align: top;
\nwhite-space: normal;
\nword-break: break-word;
\n}<\/p>\n
Both options provide exposure to the Canadian real estate market but serve different investor needs. MICs focus on diversification and convenience, while DMIs emphasize control and potentially higher yields.<\/p>\n<\/div>
Who Should Choose a MIC?<\/h2><\/div>- <\/i><\/span>
\n
Investors looking for fixed income investments in Canada.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Retirees seeking steady dividend payments.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
People who want exposure to the Canadian real estate market without hands-on involvement.<\/p>\n<\/div><\/li>
- <\/i><\/span>
\n
Investors interested in holding assets in an RRSP or TFSA for tax efficiency.<\/p>\n<\/div><\/li><\/ul>