Decision matrix
Analyzing MIC's
A decision-stage framework for comparing Mortgage Investment Corporations on LTV, mortgage priority, geography, fees, liquidity, defaults, and concentration, not yield alone.
Yield is a headline. Structure is the story.
Most public MIC comparison charts organize offerings around target yield, minimum investment, geography, and a few portfolio labels. Those fields are useful starting points. They are incomplete decision tools.
Two MICs can publish similar target distributions and still differ materially in lien priority, LTV discipline, construction exposure, redemption gates, fee drag, related-party conflicts, and how management behaves when arrears rise. Chasing the highest advertised target is how investors skip the work that actually protects them.
This page is Diversifi's decision-stage matrix in educational form. Pair it with the due diligence process and the checklist on Peter's Due Diligence Framework. Strategic-alliance overviews for AP Capital MIC and Terrapin MIC stay on this site with equal educational weight so comparison happens here, not on an issuer landing page.
The comparison matrix
Score each MIC on substance, not slogans. Use offering documents, dealer disclosure, and current portfolio reporting. Treat every cell as a question to answer, not a marketing checkbox.
| Factor | What to examine | Why it matters |
|---|---|---|
| Weighted loan-to-value | Average LTV, maximum LTV policy, how second mortgages are counted | LTV is margin-of-safety language, not a guarantee against loss |
| First vs second mortgages | Target mix, actual mix, exception policy | Priority changes recovery order in a credit event |
| Asset mix | Residential, commercial, construction, land, bridge share | Different collateral behaves differently in a downturn |
| Geography and borrowers | Region concentration, top borrowers, property-type clustering | Concentration can outweigh headline diversification |
| Leverage | Bank lines, covenants, purpose of leverage | Leverage can amplify both income and stress |
| Credit history | Arrears, defaults, foreclosures, recoveries, provisioning | Distribution history alone can hide credit drift |
| Fees and compensation | Management fees, origination fees, dealer compensation, waivers | Fee design shapes incentives and net investor outcomes |
| Minimums and accounts | Minimum subscription, registered-plan eligibility claims | Eligibility and account fit are suitability inputs |
| Liquidity | Notice periods, gates, caps, historical suspensions | Private liquidity is a policy, not a market ticker |
| Target vs actual distributions | Stated targets, actual history, cash drag, fee drag | Targets are not promises; history is not destiny |
Loan-to-value and mortgage priority
Loan-to-value compares mortgage debt to property value, typically using an independent appraisal in private lending. Lower LTVs generally imply larger borrower equity cushions, which can improve resilience in some default scenarios. LTV policy is a key diligence item, not a shield.
Ask for average LTV and maximum LTV policy. Ask how second mortgages are treated in the LTV math. Ask whether construction or land loans use as-is or as-complete values, and how that changes risk. Then place that answer beside first versus subordinate exposure. A portfolio heavy in seconds can look attractive on yield and still carry a different recovery profile.
Concentration, leverage, and overlooked risks
Investors frequently overlook the risks that do not fit in a yield column:
- Top-10 loan concentration doing most of the economic work
- Single-city or single-asset-class dependence
- Related-party origination or servicing conflicts
- Redemption machines that work in calm markets and seize in stress
- Distribution continuity funded by unusual liquidity gymnastics
- Manager key-person risk without documented process depth
Diversification is not the number of account statements you receive. It is the number of distinct ways you can be hurt. Read more on concentration and risk labels in Risk, Liquidity and Labels.
If a MIC publishes a target distribution, treat it as a planning assumption under review, not a contracted bank rate. Pair every target with credit history, liquidity terms, fees, and suitability. Past performance is not indicative of future results. Distributions and capital preservation are not guaranteed.
Five questions to examine next
- What job must this capital do in my plan, and what would make me walk away immediately?
- What is the MIC's mandate in one sentence, and what is explicitly out of mandate?
- How do LTV, lien mix, and arrears history look together, not as separate marketing bullets?
- If many investors redeem at once, where does the cash actually come from?
- Who benefits if I subscribe, and can the dealer explain conflicts without defensiveness?
Write your answers before you ask for a recommendation. Then have Harris review those answers with you by phone at 604-761-5405, or request a callback on Request a call.
How to use relationship pages without turning this into product shopping
Use Diversifi to understand the dealer / licensing-house role. Use AP Capital MIC and Terrapin MIC as equal educational overviews of lending posture and diligence questions, not as competing ads. Neither page is an offer to sell securities. Suitability review is required before any investment discussion.
Return to the Learn hub if definitions are still fuzzy. If the matrix clarified your questions, move to a Fit and Risk Call. Education first. Suitability before recommendation.
FAQ
Why not just rank MICs by target yield?
Can I use this matrix on MICs not listed on this site?
Does a lower LTV make a MIC safe?
Where do I go after filling out the five questions?
Ready to talk about fit and risk?
Call MIC Investing for a short educational conversation. Suitability comes before any recommendation. No product pitch on minute one.
Informational purposes only. Diversifi Alternative Investments Ltd. is a registered Exempt Market Dealer in British Columbia, Alberta, Saskatchewan and Ontario. Target yields, distributions, liquidity and capital preservation are not guaranteed.