As homeowners rethink financial flexibility, new data highlights homeowner frustration with traditional lending and growing demand for modern solutions

A new survey from Hometap, the Boston-based financial technology company pioneering home equity financing solutions, finds that traditional lending doesn’t meet every homeowner’s needs today. While most remain confident in the long-term value of their homes, they say existing products like mortgages, HELOCs, and home equity loans no longer align with their financial realities or goals.

Even as homeownership continues to represent stability and wealth-building potential, high interest rates and rising costs have made it harder for many to make traditional products work. Many homeowners are taking a closer look at where their housing costs are creating strain, something Hometap has seen through growing engagement with its Cost of Homeownership Assessment. The survey findings show a shift in what homeowners want from financing tools: greater flexibility and financing options that evolve with life changes and rising homeownership costs.

“Homeowners are rethinking what financial flexibility really means,” said Jeffrey Glass, CEO of Hometap. “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."

Hometap’s latest survey findings underscore how homeowner sentiment is evolving, from cautious decision-making to changing expectations around lending and financial flexibility:

• Homeowners are approaching borrowing with caution: Nearly half (49%) say they would turn to cash reserves, credit cards, or personal loans before using a home equity product, and 15% wouldn’t pursue financing at all. Another 23% say they would delay or forgo major expenses or life goals if traditional financing didn’t meet their needs—showing a growing preference for financial control over quick access to cash.
• Millennials are leading the shift away from traditional lending: Millennials, who entered homeownership in a high-rate environment, are far more likely than older generations to question traditional lending and explore new options. 26% would consider innovative financing if traditional products don’t fit their needs, compared with 43% of Baby Boomers who say they would rely on savings or emergency funds before trying something new.
• Frustration with lenders runs deep: Among the 75% of homeowners who say they want new types of financing, 86% feel traditional lenders don’t have their best interests at heart, and nearly 80% describe the process of accessing home equity as outdated and difficult. Together, these findings reflect widespread skepticism toward a system that many feel no longer works in their favor.
• Flexibility is the new benchmark for financing: 87% of homeowners wish they could tap into their home equity without monthly payments, underscoring a desire for simple, adaptable products that align with modern financial realities.

“The home equity industry has been slow to evolve, but homeowners are thinking differently now,” said Pat, a South Carolina homeowner. “We want financing options that meet us where we are and move with us as life changes.”

Read the full report here.

Methodology

Hometap surveyed 1,000 homeowners in the U.S. ages 18+ through AYTM (Ask Your Target Market) in October 2025.

About Hometap

Founded in 2017, Hometap is a Boston-based fintech company on a mission to make homeownership less stressful and more accessible. Starting with its industry-leading home equity investment product, the company has helped over 22,000 homeowners across the U.S. access their home equity without having to take on additional monthly payments or sell their home. Hometap expanded its suite of innovative financial products and services in 2022 with the Home Equity Dashboard. This digital platform is designed to help homeowners at every stage of their journey make more informed financial decisions about their home — and take action on those decisions — with confidence. Learn more at hometap.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251211707304/en/