New survey points to rising demand for flexible, no-payment ways to tap home equity
Homeowners who once viewed traditional mortgages and home equity products as the default path to financial flexibility increasingly look elsewhere, according to new survey findings from Boston-based fintech Hometap.
The research points to a widening gap between what borrowers wanted from housing finance and what banks and mortgage lenders currently offer.
The survey of 1,000 US homeowners, conducted in October 2025, found that “traditional lending doesn’t meet every homeowner’s needs today,” as many respondents said products such as mortgages, HELOCs and home equity loans no longer align with their “financial realities or goals.”
“Homeowners are rethinking what financial flexibility really means,” Hometap CEO Jeffrey Glass said.
“We’re seeing a shift in expectations. People want financing that’s transparent, adaptable, and aligned with their goals. They need solutions that allow them to have a house and a life, not a house or a life. More choices are needed than just a traditional loan.”
Survey responses suggested borrowers have already pulled back from using home equity in familiar ways.
Nearly half of homeowners – 49% – said they would turn to cash reserves, credit cards or personal loans before using a home equity product, and 15% said they would not pursue financing at all.
Another 23% said they would delay or forgo major expenses or life goals if traditional financing do not meet their needs.
Millennials, who largely entered ownership in a higher-rate environment, appear more open to new models. According to a new LendingTree report, millennials aged 28 to 43 made up nearly half (49.7%) of mortgage purchase inquiries in the US's 50 largest metros in 2024.
“Millennials in these metros are making good money and many are growing their families, leaving them in need of more space and pushing them to shop for new homes,” Matt Schulz, LendingTree’s chief consumer finance analyst, said.
“Residents of these metros also tend to have high credit scores, which, when combined with high incomes, means that you likely have a lot of options when getting a loan.”
The Hometap survey also revealed that 26% of millennials would consider “innovative financing” if traditional products do not fit, while 43% of Baby Boomers said they would rely first on savings or emergency funds rather than trying something new.
Among the 75% of homeowners who said they wanted new forms of financing, 86% felt traditional lenders do not have their best interests at heart, and nearly 80% described the process of accessing home equity as “outdated and difficult.”
Flexibility emerged as a key demand, with 87% saying they wish they could tap equity without monthly payments.
Those preferences align with a growing, if still niche, market for home equity investments and shared appreciation agreements, which allow homeowners to receive cash in exchange for a slice of future home value, generally with no interest or monthly payments.
Borrowers remain confident in long‑term home values, but they expect products that share risk, smooth cash flow and adapt as life circumstances change. Firms that fail to respond risk watching a new generation of equity‑sharing and fintech players capture a growing share of demand.
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