What is Hometap and Why Isn't It Available in Europe?
Hometap is an American fintech company founded in 2017 that offers home equity investments (HEI). It operates in 17 US states including Massachusetts, New York, and California.
The Hometap model works as follows:
- Homeowner receives a lump sum (typically 15-30% of home value)
- In exchange, Hometap gets a share of future appreciation
- After 10 years, the homeowner must settle — by selling, refinancing, or paying cash
Why doesn't Hometap work in Europe?
- American legal framework (equity share agreements) isn't compatible with European law
- Different mortgage culture — lifetime tenancy rights are more common in Europe
- Hometap explicitly states "we do not operate outside the US"
Comparison: HomeGrif vs Hometap
| Criteria | HomeGrif (Slovakia/Czechia) | Hometap (USA) |
|---|---|---|
| Availability | Slovakia, Czech Republic | Only 17 US states |
| Age Requirement | 50+ years | None (younger allowed) |
| Payment Type | Monthly pension OR lump sum | Lump sum only |
| Settlement | None — lifetime | 10 years — balloon payment |
| Heir Protection | Earlypass guarantee 50% | None |
| Investor Gets | Property share after death | Appreciation share + original investment |
| Right to Live | Lifetime (registered easement) | Only until settlement (10 years) |
| Risk of Losing Home | Zero | Yes, after 10 years |
Key Advantages of HomeGrif Over Hometap
1. No 10-Year Bomb
The biggest difference is the settlement period. With Hometap, you must repay the investment plus appreciation share after 10 years. If you don't have cash or can't refinance, you must sell your home.
"Many homeowners don't fully understand that they'll need to repay the investment within 10 years."
HomeGrif has no settlement period. You stay in your home for life. Settlement only occurs after your death.
2. Monthly Pension, Not Just Lump Sum
Hometap offers only a one-time payment. This can be problematic — if you receive $50,000 at once, you might spend it faster than planned.
HomeGrif offers three options:
- Monthly pension — regular income until death
- Lump sum — if you need cash immediately
- Combination — part upfront, rest as monthly pension
3. Earlypass Guarantee for Heirs
What if you die earlier than expected? With Hometap, your heirs get nothing extra — they must settle the debt to the investor.
HomeGrif has Earlypass guarantee: if you die within the first 5 years, your heirs receive 50% of the property value. This is protection that American products don't offer.
4. Transparent Terms Without Hidden Fees
Hometap charges:
- Origination fee: 3-5% of investment
- Closing costs
- Appraisal fees
- Appreciation share (effective cap around 20% annually)
HomeGrif has all costs included in the pension calculation. What you see is what you get.
Example: Same Apartment, Two Models
Situation: Mr. Smith (65 years old) owns an apartment in Bratislava worth €150,000.
With Hometap (if it worked in Europe):
- Receives one-time: ~€30,000 (20% of value)
- Must repay in 10 years: ~€45,000-60,000 (depending on appreciation)
- If he can't pay, loses home at age 75
With HomeGrif:
- Receives monthly: ~€850 for life
- Total after 10 years: ~€102,000
- Lives at home until death, no settlement stress
- If dies within first 5 years, heirs get 50% of value
Who Should Choose HomeGrif?
HomeGrif is ideal for:
- Seniors 50+ who want to improve cash flow without risking their home
- Mortgage-free homeowners who want to unlock property equity
- Parents who want to help children with mortgage down payments
- Childless couples who want to enjoy assets during lifetime, not leave them to the state
Conclusion: The European Model is Safer
Hometap is an innovative product for the American market. But its 10-year settlement creates significant risk for seniors — many may find themselves forced to sell their home at an unfavorable time.
HomeGrif offers a European alternative with lifetime tenancy rights, monthly pension, and heir protection. If you're looking for a way to unlock your home's value without risk, HomeGrif is the safer choice.
Calculate your monthly pension: Use our online calculator to find out how much you can get from your property.