How Home Value Changes Affect Your Unison Agreement
The Homeowner’s Guide to Equity Sharing with Unison, Part 3: How We Share Value
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You own it. So own it.
Use the wealth in your home to achieve your life goals.
One of the defining features of an Equity Sharing Agreement is that Unison participates in the change in your home’s value.
The Investor Percentage
When you receive your Initial Payment, Unison is assigned an Investor Percentage. This determines the portion of the change in value Unison shares in when the agreement ends.
Unison secures that Investor Percentage through a recorded Memorandum of Agreement and Security Instrument at closing. Similarly to how a contractor can use a lien to secure payment for major home improvements, this structure ensures the shared-appreciation arrangement survives for both parties.
Importantly, Unison bears real downside risk and can lose most or all of its investment if home values decline significantly after the initial restriction period.
For primary residences, the Investor Percentage is typically calculated at 4x. In simple terms:
If you unlock 10% of your home’s value today, Unison’s Investor Percentage would typically be 40%.*
(*Secondary and investment properties may use a different multiple.)
What Happens When the Agreement Ends?
There are three possible market outcomes:
| Market Scenario | What Happens |
|---|---|
| Home Value Increases | We receive the Initial Payment, plus our Investor Percentage of the increase above the OAV. |
| Home Value Stays the Same | You repay the Initial Payment; you enjoyed the use of funds with no monthly payments. |
| Home Value Decreases (after 3 years) | We share in the loss with you, which can reduce the amount you owe of the Initial Payment. |
It’s important to note that during the first three years (five years for some older agreements), Unison generally shares in gains, but not in losses. If the agreement ends during this Restriction Period and the home has declined in value, the Ending Agreed Value is set at a minimum of the Original Appraised Property Value.
There is also an Equity Appreciation Limit, which caps Unison’s maximum return in the early years to balance that restriction period. Once the Restriction Period passes, Unison shares proportionally in any loss — reducing your repayment obligation and providing genuine risk-sharing on depreciation. However, if you choose to buy out of the agreement at any time, Unison does not share in losses.
And don’t forget: throughout the life of the agreement, you keep all the equity you build by paying down your mortgage. That equity is always yours, in all scenarios.