What is a Home Equity Sharing Agreement? A plain-language guide for Ontario homeowners.

Most Ontario homeowners have never heard the term Home Equity Sharing Agreement. That is not surprising — it is a new category in Canada. But it solves a very old problem: what do you do when most of your net worth is locked inside a house you have no intention of selling?

The short version

An HEQ HESA is a private agreement between you and Home Equity Partners. In exchange for a lump-sum advance today (typically 15% to 17.5% of your appraised home value), HEQ receives a share of the change in your home's value when the agreement ends — usually when you sell, refinance, or after ten years, whichever comes first.

There is no interest. There are no monthly payments. It is not a loan.

How it is different from a HELOC or reverse mortgage

A HELOC is debt. You borrow money, interest accrues, and you make payments. A reverse mortgage is also debt — interest compounds silently until you sell or pass away.

A HESA is an equity share. HEQ becomes a passive participant in the future value of your home, not a lender. If your home appreciates, we share in the appreciation. If it declines within the first three years, HEQ absorbs that decline — you do not.

A HESA is not a loan. It is a way to convert some of your future home value into cash today, without adding to your monthly obligations.

Who uses a HESA?

• Retirees who are equity-rich but cash-poor and want to supplement pension income without a monthly payment.
• Self-employed homeowners whose income doesn't fit the mortgage stress test but who have significant equity.
• Homeowners renewing at higher rates who want to consolidate high-interest debt before signing a new term.
• Families with unexpected expenses — medical, education, or supporting adult children — who don't want to add a monthly payment.

What happens at settlement

When you sell, refinance, or reach the 10-year term, you or the sale proceeds settle with HEQ. The settlement amount is the original advance plus HEQ's share of the change in home value. That share is capped, and the exact percentage is set at the start — nothing changes mid-agreement.

The homeowner protections

Every HEQ agreement includes core protections:

• A three-year downside blackout: if your home declines in value in the first three years, HEQ does not participate in that decline.
• Independent legal advice is required before any agreement is funded.
• You remain on title. You control the home. You decide when to sell.

Is it right for you?

A HESA is right for a homeowner who has significant equity, wants to avoid monthly payments, and is comfortable sharing some of the future appreciation in exchange for that flexibility. It is not right for everyone — and that is why we require independent legal and financial advice before proceeding.

The best next step is our equity estimator to see what an advance might look like for your property, or a call with our team to walk through your specific situation.