Hosper Mortgage Investments is a fully licensed mortgage administrator recognized by FSCO. We comply with all CRA requirements regarding tax reporting and audit. For the convenience of our investors we can provide a statement of earnings to assist with their annual tax filings. However, since all our investments are direct mortgage investments, there is a self-reporting obligation on each investor to self-report their interest income received from the borrower. Hosper Mortgage does directly not report investment income to the CRA or issue a T5 statement. We advise each investor to consult an accountant to obtain proper taxation advice based on your specific circumstance. There can be no guarantee that the current tax position prevailing at the time of an investment will not change.

The majority of our approved loans have a 12-month term. In the mortgage industry, this is considered a short term loan. Short term loans are preferred by private mortgage investors because they protect the investor by limiting exposure to long term market volatility. On a case by case basis, we do occasionally offer 6-month and 24-month loans.

Regardless of term length, all of our mortgage agreements allow for renewal at the sole discretion of the investor(s).

The above notwithstanding, we advise that mortgage investments are generally illiquid. We recommend you do not invest funds which you may need urgently as the resale of mortgage investments is possible, but cannot be guaranteed.

The minimum return on investment 8%. This is the interest rate paid to you, the investor, to borrower your funds. Occasionally, the annualized yield can increase if the borrower decides to return your funds earlier than expected. (Continue reading for more information on early discharge). In many cases, the return on investment has exceeded 10%.

Personal Bankruptcy and Consumer Proposal are both remedies that Canadians may use when in financial distress. However, it is important to understand that both of these remedies deal with a borrower’s unsecured debt only. Neither Bankruptcy or Consumer Proposal dismiss a borrower from their obligations under a mortgage loan. This is because a mortgage is a secured loan, securitizing the property as collateral. The only way to discharge a mortgage registered on title is to pay it out from available funds, alternative financing or from the proceeds of the sale of the property.

It is also important to note that a mortgaged property cannot be sold or transferred without discharging the mortgage. That is why all real estate transactions in Ontario require the work of real estate lawyer(s).