Shared Equity Mortgage

DEFINITION of 'Shared Equity Mortgage'

Joint ownership of real estate by both lenders and property dwellers. When the property is eventually sold, the owners share in the proceeds, or equity. In the meantime the property occupants benefit from interest and property tax write-offs.

BREAKING DOWN 'Shared Equity Mortgage'

Equity sharing is a great way for homeowners to join forces with lenders to create a win-win scenario for both. The former are able to get into a home at a lower interest rate than might otherwise be possible, while the latter get the benefit of an increasing real estate price without the hassles of being a landlord.