If a borrower has a clear exit plan, we may offer a 6-month open mortgage. This means the client can pay out their loan early without penalty, as long as everything goes to plan.
Many investors consider shorter-term mortgages—especially when there is a clear exit plan—to be lower-risk investments. We attract these opportunities with the offer of flexibility to our borrowers.
How is this beneficial to the investor?
The most appealing benefit to investors is a much shorter commitment of funds.
If you are a new investor with us, a 6-month open mortgage is an excellent way to experience the entire life cycle of a direct mortgage investment (DMI), without having to commit to a full 1-year term. If you discover that the investment experience works for you, then we would be thrilled to repeat the process with other properties.
One final note, before committing to a short-term mortgage, it is important to understand the intended plan does not always happen as quickly as the client hopes. It is not uncommon for these mortgages to extend beyond the initial 6-month term.
If you like the idea of a shorter-term investment, please connect with your Hosper Investment Service Representative. No question is too big or too small – We’re happy to help!