General

What is Homeshares?

Homeshares is a consumer finance company with a mission to redefine how real estate ownership is viewed. We help homeowners access the equity they've built up in their home without taking on debt that increases monthly payments.

Whats the difference between Home Equity Sharing and a Home Equity Loan?

We offer up to 10% home equity financing with no monthly payments, in exchange for a share of future home value appreciation. In comparison, traditional home equity loans or HELOCs are difficult to qualify for and have set interest rates with monthly payments.

Is there really no interest rate or monthly payment?

That’s correct. There are no interest or monthly payments associated with the Home Equity Sharing Program. Homeshares was created with the vision to reduce the debt burden and cash flow problems many homeowners face. Instead of charging you monthly payments, we share in the future appreciation or depreciation of your home value. 
You can learn more about our financing solution here.

How can I use the funds?

You can use the funds in any way you’d like. Most homeowners use the funds for debt consolidation (mortgages, credit cards, personal loans etc.), home renovations or help their children with rising university tuition expenses.


ELIGIBILITY

Who is eligible for the Home Equity Sharing Program?

We work with existing homeowners who are looking to cash out their home equity wealth. More information on qualification can be found here.

What type of properties are eligible?

We are able to offer financing for the following types of properties:

  • Single family homes
  • Townhouses
  • Commercial properties

If you have any questions about the eligibility of your home, please reach out to us.

Do you offer financing for rental or investment properties?

Yes. Our home equity financing solution works for secondary homes, rental and investment properties.

I already have an existing mortgage and HELOC, can I still apply?

Yes. As long as you have a loan to value (LTV) of less than 80% across all existing loans against your home, you can apply for the Home Equity Sharing program. If your circumstances are different, we would be happy to see where we can help.

I have a low credit score, is that ok?

Yes. Our unique underwriting approach looks beyond credit scores and evaluates other factors such as your income, savings, property details etc. You can learn more about our eligibility guidelines here.

What provinces is the Home Equity Sharing Program available in?

We are currently available throughout Ontario. 
Not from Ontario? No worries. We are rapidly expanding to serve more homeowners across the country. Please contact us and provide us with your information - we will be sure to update you when we launch in your area.

Can I use Home Equity Sharing for short-term needs?

Yes, but we do not recommend to do so as Home Equity Sharing is intended for long-term financing needs (such as over 3 years).


HOMESHARES OFFER

How can I get an offer?

Getting a Home Equity Sharing offer is easy. Our initial offer is free. You can start here.

How is the percentage Homeshares receives calculated?

The percentage is calculated based on data collected from you during the application process and coupled with our own underwriting and risk analysis model. This percentage is disclosed upfront and does not change over time.

How is the value of my home calculated?

For the initial offer, we use a combination of data from 3rd party databases along with our own proprietary pricing system to come up with the home value. Once you proceed to the final application, the final home value is based on a independent 3rd party appraisal.

How long does it take to receive financing?

We can generally provide financing within 1 week of your initial offer. To get started, please click here.

Can I remodel my home at any time?

Yes. You can remodel your home or make changes to your home. In fact, many homeowners apply for financing to make home improvements and repairs.

Can I refinance my primary mortgage after receiving funds from Homeshares?

Yes - as long as you maintain the outlined minimum equity requirement (20%-25% of the home's value) after taking into considerations all liens and our investment. If you believe you are a special case then please do not hesitate to contact us. While we always strive to give you flexibility, we cannot guarantee that you will have access to home equity loans or refinancing.

Who is responsible for property taxes, insurance, and property maintenance costs?

The homeowner is responsible for all the associated costs for their home, such as property taxes, insurance, the first mortgage etc. We expect homeowners to continue making these payments on time. 


REPAYMENT

When do I have to pay back Homeshares?

You have up to 10 years to pay back Homeshares. However, you can also pay us back earlier if you wish. We do not have any early exit fees or penalty.

What is the amount due at the end of the term?

At contract expiry, the final amount due is based on the appreciation or depreciation of your home’s value. The percentage is disclosed upfront at the start of the contract and remains constant throughout. You can see a sample payout to see how it works here.

How is appreciation or depreciation calculated?

We base these calculations on a 3rd party home appraisal when you choose to pay us back. We use that value to determine the appreciation of the home.

Can I exit the contract before the end of the term?

Yes. You can exit the contract at any point of time before the end of the term. The final payment amount will be based on the home value at that time and the percentage share of the appreciation. There is no prepayment penalty or additional fees if you exit before the end of the term.

Do I have to sell my home for final payment?

No. You do not need to sell your home. We offer complete flexibility for repayment and work with you on a variety of options, including refinancing, cash payments etc.


FEES

What fees do I have to pay?

The initial offer is free and has no commitments tied to it. If you decide to proceed, we charge a one-time servicing fee of 4% of the financing amount before transferring the funds.

What closing costs do I have to pay?

In addition to the servicing fee, you are also responsible for solicitor and home appraisal fees.