EasyKnock A-Z

Our easy-breezy guide to everything from home equity to mortgage and more.

Annual Inflation Premium

Greater of 2.5% or CPI annual increase of funding amount

Equity Release

Generating liquidity from your equity, while also retaining the right to use the asset.
Ex: “Sell and Stay” pays homeowners a lump sum of cash and mortgage payments, but still gives them the right to rent, repurchase, and sell their homes as stated in.

Funding Amount

EasyKnock’s initial payment (includes paying off mortgage balance).

Loan To Value (LTV)

A financial ratio expressing the proportion of borrowed money to the value of the purchased asset
Ex: If a home with a $200,000 market value has a $50,000 mortgage balance, the LTV ratio is 25%.

Mortgage Balance

The full amount owed by a homeowner at a period of time, including remaining principal owed, accrued interest (also referred to as the outstanding principal balance or OPB)


In finance, an option is effectively a contract allowing an entity the right to buy or sell an asset at a predetermined price on a specific date. The entity, however, is under no obligation to exercise the option.
Ex: In a “Sell and Stay” agreement, homeowners are given a “Lease Termination Option” giving them the right to rent, repurchase, or sell their home.

Repurchase Price

Funding amount + inflation premium

Sale Leaseback

An arrangement involving the sale of an asset, wherein the seller leases the asset from the purchaser after the sale is complete
Ex: In a “Sell and Stay” agreement, the homeowner is the seller, and EasyKnock is the purchaser.

Sellout Value

Successor purchase price – repurchase price – closing costs (remainder of equity after fees).