The short answer
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, settled after 7 years), Hometap costs 14.1% a year versus 14.7% for Unison.
Unison is cheaper below about 3.6% annual growth; Hometap is cheaper above it (settling after 7 years).
Settle within 3 years and Unison is cheaper; hold for 10 and Hometap is.
Side by side
| Hometap | Unison | |
|---|---|---|
| What they call it | Home Equity Investment | Equity Sharing Agreement |
| How you repay | Share of your home's total value at settlement | Share of your home's change in value, up or down |
| Cash available | $15K to $600K | Up to $500K |
| Max share of home value | 27% | 15% |
| Equity you must keep | 25% after funding | Not published |
| Fee | Up to 4.5% Fee from a third-party review | Up to 3.9% |
| Cost cap | 18.5% a year, compounded monthly | None published |
| Term | 10 years | Up to 30 years |
| Minimum credit score | 585 | Not published |
| Shares losses if value falls | Yes, you owe a share of a lower value | Yes |
Full reviews: Hometap · Unison. Sources for every term.
Cost at different growth rates and timelines
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. The cheaper of the two is highlighted.
| Growth | 3 years | 7 years | 10 years | |||
|---|---|---|---|---|---|---|
| Hometap | Unison | Hometap | Unison | Hometap | Unison | |
| 0% a year | 20.6% | 8.3% | 9.7% | 3.5% | 6.7% | 2.4% |
| 2% a year | 22.7% | 15.2% | 11.9% | 9.6% | 8.8% | 8.2% |
| 4% a year | 22.7% | 21.6% | 14.1% | 14.7% | 11.0% | 12.7% |
| 6% a year | 22.7% | 27.6% | 16.3% | 19.1% | 13.1% | 16.5% |
| 8% a year | 22.7% | 33.3% | 18.5% | 23.1% | 15.2% | 20.0% |
Ten-year agreements are shown at year 10 when you'd hold longer. Open this example in the calculator.
Key differences
- How you repay: Hometap: share of your home's total value at settlement. Unison: share of your home's change in value, up or down.
- Time to settle: Hometap 10 years; Unison up to 30 years.
- Cost cap: Hometap 18.5% a year, compounded monthly; Unison publishes none.
- Starting value: Unison measures gain from 5% below your appraisal.
- How much you can take: Hometap up to 27% of your home's value; Unison up to 15% of your home's value.
- Credit: Hometap minimum 585; Unison doesn't publish one.
Which fits you
- Your home may not appreciate much: Unison (3.5% vs 9.7% at 0% over 7 years).
- You expect strong growth: Hometap (18.5% vs 23.1% at 8% over 7 years).
- You might settle within 3 years: Unison (21.6% vs 22.7%).
- You need more than 10 years: Unison, which allows up to 30 years.
Questions
Is Hometap or Unison cheaper?
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, 7 years), Hometap costs 14.1% a year versus 14.7% for Unison. Unison is cheaper below about 3.6% annual growth; Hometap is cheaper above it (settling after 7 years).
Which is better if I settle early, Hometap or Unison?
Settling after 3 years at 4% growth, Unison costs 21.6% a year versus 22.7%.
More comparisons
Run your own numbers
Every figure here uses a standard example. The calculator runs your home, your mortgage, and your assumptions through every provider at once.
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