The dream of owning a home in the Greater Toronto Area (GTA) has come true for many people, but in certain cases at a steep cost: the inability to afford anything beyond the basic expenses of everyday life.

Helping out a loved one, securing retirement, paying off high-interest debt, starting a business or updating one’s home– these have become unattainable financial goals for many homeowners with limited disposable income. And even if you have built up equity in your home, you still may not be able to access (or choose to access) some of the more traditional debt products currently available in the marketplace, including HELOCs, second mortgages and/or reverse mortgages. According to Ipsos, 77% of Canadian homeowners’ net worth currently remains trapped in their home.

Thankfully, The Home Equity Partners are offering an exciting new financial product in the GTA that is set to make a difference in the lives of cash-strapped homeowners. The Home Equity Sharing Agreement (HESA) is designed to empower homeowners to help achieve their financial goals – without taking on more debt. There are no monthly payments, no interest charges, and no usage restrictions. And for investors, the product delivers scalable investment opportunities into the largest asset class in the world: owner-occupied residential real estate.

“We believe our HESA fulfils a very acute need among Canadian homeowners,” says Shael Weinreb, Founder & CEO of The Home Equity Partners. “We’re excited to be able to offer this innovative product in a market that is ripe for change and that will greatly enhance the lives of Toronto homeowners.” 

The Home Equity Partner’s home ownership investment is not a loan. It is a long-term investment in the homeowner’s property.

Here’s how The Home Equity Partners HESA works: If you live in the GTA and have at least 30% equity built up in your principal residence, you may qualify for a HESA. If so, The Home Equity Partners will give you an upfront payment for anywhere between 5% and 17.5% of your home’s current market value. The transaction is then secured against the homeowner’s property. 

The Home Equity Partners share in the appreciation of your home at a rate of four times the percentage of your home’s value being accessed through the HESA. That means if you tapped into 5% of your home’s value, you’d share 20% of the future appreciation with The Home Equity Partners.

On the other hand, if your home value instead drops, The Home Equity Partners will share in the depreciation of your home as well. 

“We offer a 10-year term, and you can exit the arrangement at any time,” explains Alicia Pedicelli, Chief Revenue Officer. “So the money you pay us will depend on how much your home has appreciated (or depreciated) in value.”

The Home Equity Partners are also making it a priority to ensure every homeowner who signs up for their product understands how it works.

“We’re all about transparency,” says Weinreb. “That’s why we prioritize open communication with homeowners every step of the way. We’ll always do our best to answer every question openly and honestly.”

Weinreb and Pedicelli are confident that the HESA will appeal to a diverse range of homeowners. From retirees seeking to improve their lifestyle without relocating, to middle-aged individuals aiming to eliminate high-interest debts, and young professionals looking to invest in more properties or pay off student debt – the door is open to every homeowner who qualifies. 

Weinreb points out that, “This type of home equity product has been available in the U.S. since 2004. We’re pleased to finally be able to offer our HESA to GTA homeowners, now helping improve their quality of life significantly.”

The Home Equity Partners will also be offering some additional value-add benefits for its customers in the near term. “Through strategic business relationships, we will be able to offer our homeowners unparalleled savings, further enhancing the value proposition of our product," Weinreb says.

The Home Equity Partners is a dynamic Canadian company based in Toronto. Their management team has extensive experience in Real Estate, Marketing, Customer Service, Sales, Finance, and Acquisitions/Dispositions, supported by an Advisory Board who share the company’s values. 

Weinreb has a wealth of experience that he brings to bear with The Home Equity Partners. He most recently held executive roles with Republic Developments and Starlight Investments, and was the President and Chief Operating Officer at Freed Developments. There he helped manage and oversee various areas of the business, including corporate strategy, acquisitions, dispositions, leasing, sales, reporting, and marketing.

Pedicelli brings over 20 years of experience in the banking industry, with a focus on treasury and personal banking. With a proven track record in building and maintaining beneficial partnerships, she provides keen insight into market trends and customer needs. 

Visit theheqpartners.com for more information on The Home Equity Partners.