Clay Financial Launches HESA to Help Canadian Homeowners Tap into Wealth

Last year, Toronto-based Clay Financial closed a $1.7 million pre-seed funding round.

This year the fintech’s flagship service, its Home Equity Sharing Agreement, has officially launched in the Greater Toronto Area.

Clay aims to help Canadians tap into their home equity without selling or taking on debt. The company’s HESA allows homeowners to convert equity into cash in exchange for a share of their home’s future appreciation.

The fintech posits that while home equity represents a substantial portion of Canadian homeowners’ wealth, there have typically been few ways to access that wealth.

With no monthly payments, the HESA is a flexible alternative to traditional debt products like home equity lines of credit and reverse mortgages, according to Clay.

“We thought there had to be an option for people who wanted to stay in the home they love and didn’t want to—or couldn’t—take on the burden of debt,” the company stated.

There are no restrictions on how Canadian homeowners can use a HESA to achieve their financial goals, according to Clay. Whether they want to supplement their retirement income, pay off debts, renovate their home, diversify their wealth, start a business, or buy a property, a HESA is designed to provide financial flexibility to help achieve goals.

“This announcement is a big milestone for us,” Clay stated. “We also think it’s a big win for Canadian homeowners, who now have a true alternative to selling their homes and taking on debt to access their existing home equity.”

According to the fintech, the HESA is a contract that can last up to 25 years, acting
“a bit like an investment in your home equity.”

Alongside the HESA for Torontonians, Clay unveiled a new website with resources such as their Estimate Tool, which can help you understand how much equity you may be able to access with a HESA, and a Dashboard to track every step of your application and manage your HESA online.

“Whether you’re looking for $50,000 or $500,000, a HESA provides an alternative to traditional debt products like home equity lines of credit and reverse mortgages,” the fintech states online. “We’re excited about the world of possibilities it can unlock for Canadian homeowners.”