Funds to Homeowner
Homeowner Repays
Homeowner Keeps
Annual Cost
Funds Today
Equity Sharing Terms
| Home Value Change / Year | % | % | % | % |
|---|
*Annual Cost will never exceed what is permitted under Canadian law.
How It Works
- No monthly payments or interest: The homeowner receives a lump sum today. HEQ is repaid only when the homeowner exits the agreement.
- What the homeowner repays: At exit, the homeowner repays the Initial Payment plus HEQ's share of any increase in the home's value, or minus HEQ's share of any decrease.
- HEQ's share: The Investment Percentage is the Initial Payment as a percentage of the Appraised Home Value. For example, $100,000 on a $1,000,000 home is 10.0%. If the home's value goes up, HEQ receives 4x that percentage of the increase (40.0%). If the value goes down, HEQ shares the decrease at that same percentage (10.0%).
- How the change in value is measured: The change is measured from the Starting Agreed Value (the Appraised Home Value less a 5.0% Risk Adjustment) to the Ending Agreed Value (the sale price, or a new appraisal for a Homeowner Buyout).
- Flexible exit: The term is up to 10 years. The homeowner can exit at any time by selling the home or buying out HEQ's share, with no prepayment penalty.
- Early exit and buyout rule: For a Homeowner Buyout, or a sale within the first 3 years, the Ending Agreed Value cannot be lower than the Appraised Home Value.
- Eligible homes: The HESA is available to homeowners in the Greater Toronto Area who own and live in a single-family home, semi-detached home or townhome. Condos are not eligible at this time.
- HESA limits: The homeowner needs at least 30.0% equity, and the existing mortgage and secured debt (including HELOC limits) plus the Initial Payment cannot exceed 75.0% of the Appraised Home Value. The Initial Payment ranges from $50,000 to $500,000, and from 5.0% to 17.5% of the Appraised Home Value.
- Renovations and upkeep: This calculator does not account for either. At exit, value added by permitted renovations over $25,000 is excluded in favour of the homeowner, and value lost to poor upkeep is added back in favour of HEQ. Both are determined by an independent appraisal or inspection.
Ready to Submit?
Submit through Perch Capital MIC
Send the application through Filogix or Velocity and note that it is for HEQ.
Estimates are illustrative and provided for discussion purposes only, and do not constitute an offer or a commitment to enter into a Home Equity Sharing Agreement. To secure the obligations of the homeowner under the Home Equity Sharing Agreement (HESA), HEQ registers a mortgage against title to the Property. Notwithstanding the registration of a mortgage against the Property, HEQ is not a licensed mortgage broker and does not offer, arrange or administer mortgages, or participate in mortgage brokering activity and HESAs do not constitute a mortgage. HEQ works with and arranges HESAs and the related transaction through licensed mortgage brokers.
This website and its content are provided for general informational purposes only and do not constitute financial, legal, tax, mortgage, or investment advice. Before entering into a Home Equity Sharing Agreement, homeowners are required to discuss their options with their own licensed mortgage broker and obtain independent legal representation. All HESA transactions are subject to eligibility requirements in HEQ’s sole and absolute discretion, independent property appraisal, third-party underwriting, and applicable Ontario laws and regulations.