In a recent development, Amazon has partnered with embattled online mortgage lender Better.com to provide its employees with an exclusive homebuying benefit. This innovative program, known as Equity Unlocker, enables employees to utilize their vested equity as collateral for a down payment when purchasing homes.
A Unique Program with a Twist
Better.com’s Equity Unlocker is a pioneering initiative that allows Amazon employees in Florida, New York, and Washington State to finance their homes without selling their shares. This means that employees can pledge their vested equity, which can be used as collateral for the down payment, without having to part with their shares.
Benefits Extend Beyond Current Employees
Not only current Amazon employees but also former employees with vested equity are eligible to use this service. Following the company’s recent layoffs, many former employees may benefit from this program. Additionally, the mortgage tool can be used for secondary vacation homes or investment properties.
Closing Costs and Loan Terms
The closing cost associated with securing a loan through Equity Unlocker ranges between 2% and 5% of the loan amount, as stated on Better.com’s website. While this may seem like a competitive offer, there is a catch. According to reports, Better.com will charge a higher interest rate on mortgages pledged with stock, ranging from 0.25 to 2.5 percentage points above the market rate.
Amazon’s Stance on Employee Benefits
When reached for comment, Brad Glasser, an Amazon spokesperson, expressed the company’s commitment to enhancing its benefit offerings and supporting employees’ overall well-being. "As part of that, we offer a wide-ranging slate of financial benefits, including saving resources, tools to grow financial knowledge, and programs that help employees feel financially sound," he stated.
A Creative Partnership with Uncertain Future
This partnership between Amazon and Better.com may seem surprising given the latter’s recent struggles. However, it is worth noting that Better.com has been an AWS customer since 2015 and utilizes their loan origination system powered entirely by Amazon software. Despite facing challenges such as mass layoffs and regulatory scrutiny, Better.com remains committed to expanding its services nationwide.
Eligibility and Availability
The Equity Unlocker program will be available to eligible employees in public and private companies across the United States. While Amazon may be the initial testing ground for this initiative, Better.com aims to make it accessible to a broader audience.
The Benefits of Equity Unlocker
- Enables employees to utilize their vested equity as collateral for a down payment
- Offers competitive closing costs ranging between 2% and 5% of the loan amount
- Supports short- and long-term financial success for employees at Amazon and beyond
The Catch: Higher Interest Rates on Mortgages Pledged with Stock
Better.com will charge a higher interest rate on mortgages pledged with stock, ranging from 0.25 to 2.5 percentage points above the market rate.
What’s Next?
The Equity Unlocker program is expected to be available nationwide for employees in public and private companies across the United States.
As Amazon continues to prioritize employee benefits and support overall well-being, this partnership with Better.com may signal a new era of innovative solutions for homebuying. However, it remains to be seen how this initiative will impact the industry as a whole.
Innovative Partnerships like This one will always bring great change and innovation to the world
