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Revolutionizing

homeownership

Introducing the

Mortgage Model

In this whitepaper, we introduce the Anyone Mortgage, a new model that offers a groundbreaking solution to the pressing issue of housing affordability and homeownership. By connecting homebuyers with accessible financing, the Anyone Mortgage has the potential to transform the mortgage industry and assist more starters to own a house and so enjoy a stable future.

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The Anyone Mortgage Model

1.1

The Homeownership Challenge

The global housing crisis has led to a significant decline in homeownership rates among starters and the new generation. Stagnant salaries and rising house prices have created a challenging environment for potential homeowners. In response to this challenge, mortgage providers must adapt and innovate to remain competitive and fill the liquidity gap created for the long run and address the needs of aspiring homeowners. Otherwise a liquidity crisis will crash the industry as the trend indicates.

1.2

The Call for Innovation

The Anyone Mortgage model is an innovative solution designed to promote homeownership and create sustainable investments for future generations. Anyone aims to inspire current mortgage providers to consider implementing the Anyone Mortgage, which offers an accessible and secure mortgage option for homebuyers.

The Anyone Mortgage Model:

An revolutionary opportunity for Mortgage Providers & homeowners

2.1

Model Overview

The Anyone Mortgage enables homebuyers to purchase a property with the mortgage provider taking a minimum 49% ownership stake in the house. This allows the buyer to obtain a mortgage for 51% of the property value, reducing the capital, down payment and income requirements for homeownership. When the property is sold, the mortgage provider receives 49% of the resale price as co-owner.

The power of this new mortgage model is that it represents a win-win for the current mortgage providers while delivering lower costs to homeowners. The yield for mortgage providers inherently decreases in low interest seasons as seen in the past years, while house price appreciation in those times is most aggressive. By tapping into the tremendous power of the Anyone mortgage model the existing industry can increase their yield to capital allocation ratio, add more value, allocate more funds in a low liquidity market and solve the growing social problem of house ownership becoming a myth for the new generation. Meanwhile, the cost of living for homebuyers and existing renters decreases significantly due to the new model.

The Anyone mortgage model also solves the tremendous problem looming for those existing mortgage owners that have to renew their mortgage at a higher rate and therefore are on the brink of foreclosure. Those consumers can be protected from a gloomy future by refinancing using the Anyone Mortgage to keep their homeownership endeavor affordable. This is a relevant issue for example in the UK at the moment where the market operates on short contracts instead of 20-30 year fixed rates, like in some other countries.

To conclude, the Anyone Mortgage results in a healthier and more future proof financial situation for mortgage providers and new/existing homeowners.

Asking price

€300,000

Ownership

Monthly cost

€569

Monthly cost

€569

Monthly cost

€569

2.2

Market Potential

The Anyone Mortgage model presents an opportunity for mortgage providers to expand their customer base and address the homeownership needs of hundreds of million of people worldwide. A rare win-win scenario is created where all stakeholders involved benefit from the new mortgage model compared to the traditional mortgage.

Benefits for Mortgage Providers

3.1

Increased Customer Base

By reducing capital and income requirements for the customer, the Anyone Mortgage model enables mortgage providers to tap into a broader customer base, including those previously unable to qualify for traditional mortgages.

3.2

Diversified Revenue Streams

The Anyone Mortgage offers mortgage providers a diversified revenue stream, with interest earned on the 51% mortgage and value appreciation on the 49% ownership stake.

3.3

Enhancing Mortgage Market Stability through the Anyone Mortgage Model

The global housing market has faced numerous challenges, including price fluctuations and financial crises caused by over-leveraging and risky lending practices. The Anyone Mortgage model offers a solution to these issues by providing a healthier and more stable mortgage market through shared ownership between the mortgage provider and the homeowner. This shared ownership structure ensures that mortgage providers have "skin in the game," as they directly benefit from the property's value appreciation and share the risks associated with homeownership.

  1. Preventing Over-Leveraging

    The traditional mortgage model often allows for excessive leveraging, which can lead to unsustainable levels of debt for homeowners and instability in the mortgage market. The Anyone Mortgage model addresses this issue by reducing the homeowner’s borrowing requirement, thereby lowering their overall debt levels. Instead of potential home buyers getting the maximum credit to buy a house they can now get a lower mortgage while living in a better house due to this new model. Leading to healthier mortgage provider crediting while improving the living quality of the new homeowner.

  2. Long-Term Market Stability

    The shared ownership structure of the Anyone Mortgage model has the potential to create a more stable mortgage market in the long run. By aligning the interests of mortgage providers and homeowners, this model encourages responsible lending practices and reduces the risk of over-leveraging, leading to a healthier and more sustainable housing market.

The Anyone Mortgage model offers a groundbreaking approach to homeownership by incorporating shared ownership between mortgage providers and homeowners. This innovative model helps to prevent over-leveraging and promotes prudent lending practices, ultimately contributing to a healthier and more stable mortgage market. By adopting the Anyone Mortgage model, mortgage providers can play a significant role in addressing the challenges facing the global housing market and promote responsible, sustainable homeownership for future generations.

Comparison of Traditional Mortgage vs. Anyone Mortgage:

  1. Loan Amount

    • Traditional Mortgage: Homebuyers typically borrow a significant portion of the property’s value, often between 80-100%.
    • Anyone Mortgage: Homebuyers borrow at least 51% of the property value, with the mortgage provider owning the remaining equity in the home with a maximum of to always remain a minority shareholder in the home equity 49%.

  2. Required Down Payment

    • Traditional Mortgage: Homebuyers usually need to provide a down payment of 10-30% of the property value.
    • Anyone Mortgage: No down payment is required as the mortgage provider takes a 49% ownership stake in the property and decreases the need of a down payment due to lowering the total debt taken by the homebuyer.

  3. Interest Earnings

    • Traditional Mortgage: Mortgage providers earn interest on the full loan amount, but they do not participate in the property’s value appreciation.
    • Anyone Mortgage: Mortgage providers earn interest on the 51% mortgage while also benefiting from the property’s value appreciation on their 49% ownership stake.

  4. Risk Exposure

    • Traditional Mortgage: Mortgage providers bear the full risk of loan default, potentially resulting in losses if the property value declines.
    • Anyone Mortgage: The shared ownership structure reduces risk exposure, as it prevents en masse foreclosures due to making refinancing real estate easier thus avoiding forced sales which are not beneficial for homeowners and mortgage providers.

In conclusion, the Anyone Mortgage model provides mortgage providers with greater yields over a 20-year period due to the combination of interest earnings on the 51% mortgage and the appreciation of the property value on their 49% ownership stake. This dual benefit makes the Anyone Mortgage model an attractive option for mortgage providers seeking long-term, stable returns.

Ready-to-Deploy Infrastructure for the Anyone Mortgage is built by Anyone.com

4.1

Legal and Regulatory Considerations

Anyone.com has invested in and created a legal framework with the help of one of the top tier legal firms Kennedy Van der Laan to explore the feasibility of the new mortgage model from a legal and regulatory point of view in the Netherlands. We’ve also invested in looking at the new model from a tax point of view and created an initial design which creates a robust framework for mortgage providers and homeowners. We’ve gone through all scenarios and concluded that the model is feasible and are willing to share our insights with potential partners to start offering the new Mortgage model at Anyone.com.

4.2

Technology Infrastructure

The Anyone Mortgage has the potential to revolutionize the housing market by making homeownership accessible to a wider range of people while offering attractive yields for mortgage providers. To facilitate the seamless integration of this innovative mortgage model, we have developed a comprehensive, compliant, cross-border real estate marketplace and infrastructure that is ready to be deployed in 2023. Our platform is the first real estate marketplace that fully integrates all stakeholders from a to z to facilitate a seamless transaction.

Our real estate marketplace is designed to cater to an international audience, ensuring that the Anyone Mortgage can be offered across borders in partnership with existing mortgage providers.

We have optimized most processes required to buy and sell houses, from property listings to mortgage applications, making it convenient for homebuyers, sellers, real estate agents, notatries and mortgage providers to transact on our platform. This streamlined approach reduces the time and effort required to complete transactions and ensures a smooth and fully integrated experience for all parties involved.

Our platform has been designed to enable the direct offering of the Anyone Mortgage to homebuyers. The infrastructure is already in place to facilitate the application, approval, registration and management of the Anyone Mortgage, creating a seamless and efficient process for mortgage providers and home buyers alike.

With the infrastructure ready to be deployed, we are seeking collaborations with mortgage providers who can bring their expertise and reach to the table. By partnering with established mortgage providers, we can leverage their experience to make the Anyone Mortgage a reality fast for millions of aspiring homeowners.

4.3

First (private) transactions are successfully completed in the Netherlands

The first transactions are already a fact and executed in the Netherlands. The legal infrastructure of co-ownership of real estate is already mature and well established and the Netherlands is leading on a European level in regards to compliance. We’re now looking for partners in The Netherlands, UK, Germany, Spain and the US to roll out the Anyone mortgage across the world for maximum impact as the first wave and after that we aim to mobilize our technology & solutions worldwide in any and every market that would benefit from it.

Integrating Stakeholders into the Real Estate Marketplace: Streamlining Transactions and Financing

5.1

An integrated marketplace

The real estate marketplace is often characterized by complex processes and interactions among various stakeholders, including realtors, notaries, and property valuators. By integrating all these stakeholders directly into our marketplace, we aim to streamline transactions and financing, making buying and selling houses easier, more efficient, and hassle-free for everyone involved.

5.2

The Benefits of Integrating Stakeholders

The first transactions are already a fact and executed in the Netherlands. The legal infrastructure of co-ownership of real estate is already mature and well established and the Netherlands is leading on a European level in regards to compliance. We’re now looking for partners in The Netherlands, UK, Germany, Spain and the US to roll out the Anyone mortgage across the world for maximum impact as the first wave and after that we aim to mobilize our technology & solutions worldwide in any and every market that would benefit from it.

  1. Enhanced Collaboration and Communication

    Integrating all stakeholders into the real estate marketplace enables seamless collaboration and communication among realtors, notaries, agents, property valuators, mortgage providers, and home buyers & sellers. This consolidated approach eliminates the need for multiple platforms and processes while streamlining the entire process, making it easier for everyone to work together toward a common goal.

  2. Faster Transactions

    With all stakeholders operating on the same platform, transactions can be completed more quickly and above all much more transparently. Real-time communication and data sharing enable faster decision-making, reducing the time it takes to close a deal. This increased efficiency benefits both homebuyers and sellers, who can move forward with their plans more rapidly.

  3. Simplified Financing

    Integrating mortgage providers and other stakeholders directly into the marketplace simplifies the financing process for homebuyers. By offering the innovative Anyone Mortgage alongside traditional mortgage options, homebuyers can easily compare and choose the best financing solution for their needs. With all parties working together on the same platform, securing financing becomes a breeze.

  4. Reduced Costs

    The streamlined processes facilitated by the integration of stakeholders can result in reduced transaction costs. By automating and consolidating various tasks, the platform limits the need for intermediaries and reduces the associated fees, ultimately making buying and selling houses more affordable for everyone.

  5. Increased Transparency

    Integrating all stakeholders into the marketplace fosters transparency throughout the entire transaction process. With real-time updates and easy access to information, all parties can stay informed and make better decisions. This increased transparency promotes trust and confidence in the real estate & mortgage servicing industry, benefiting all stakeholders.

Other models that currently are being contemplated and or could be tested:

6.1

Shared Equity Mortgages (SEM)

SEMs involve a third party (often a government body or a non-profit) providing a portion of the down payment in exchange for a proportionate share in the future appreciation of the home. This reduces the upfront cost for the buyer and also shares the risk of property price fluctuation. When the house is sold, the third party recoups their investment plus a share of the profit generated from home price appreciation.

6.2

Rent-to-Own

In this model, a portion of the tenant's monthly rent payments goes towards a future down payment on the property. This allows renters to build equity over time, while also giving them the opportunity to live in the home before deciding to purchase it. Rent to own or Lease to Own as we called it in the domain industry helped many startups afford the right brand from day one and could help starters accomplish the same in the housing market.

6.3

Delayed Purchase

In this model, a real estate company buys a house on behalf of a client, who then rents the home from the company while saving up for a down payment. Once the client has saved enough, they can buy the house from the company at a prearranged price.

6.4

Graduated Payment Mortgages (GPMs) with an equity angle

These are loans where the payment starts small and increases over time. This could help younger buyers who expect their income to rise in the future. If the salary of the starter does not increase significantly, the mortgage provider takes a stake in the equity of the house instead of increasing the mortgage payment giving starters a bigger chance to own the house but not putting them in unwanted financial risk.

6.5

Mortgage Guarantees for starters powered by governments

Another approach is for third parties (like government entities) to provide guarantees on mortgages for first-time homebuyers or those with low income. This reduces the risk for lenders and might make them more willing to offer mortgages to these groups.

6.6

Variable Interest & Equity Mortgage

Similar to the Anyone Mortgage, this model could allow the homeowner and the mortgage provider to share in both the interest and the home's appreciation. However, the split could vary over time based on predefined metrics, such as local housing market conditions, the homeowner's payment history, or changes in the homeowner's income. This could provide additional flexibility and risk-sharing benefits.

6.7

Performance-Based Mortgage

The interest rate on the mortgage could be linked to the homeowner's financial behavior. For example, if the homeowner maintains a good credit score, saves a certain amount each month, or improves the home's energy efficiency, the interest rate could be reduced. This model could incentivize good financial habits and sustainable living. In this model it is crucial to define the right variables and find a way to track these variables in an unbiased manner.

6.8

Community Mortgage

In this model, a group of homeowners in the same community could pool their resources to collectively buy and own their homes. The mortgage provider would receive both interest payments and a share of the overall appreciation of the community's homes. This could create shared incentives for maintaining and improving the community. This model might work for establishing new micro communities and financing the development of these communities. Since the community is close knit the model could introduce less risk in volatile markets for the lender and the community overall.

6.9

Income-Share Mortgage

Similar to income-share agreements for student loans, the homeowner could agree to pay a certain percentage of their income each year instead of a fixed mortgage payment. The mortgage provider could also receive a share of the home's appreciation. This model could make homeownership more accessible for people with variable or uncertain income. A minimum income has to be set though to avoid cash flow issues.

6.10

Sustainability Mortgage

The interest rate could be linked to the home's environmental impact. If the homeowner reduces the home's carbon footprint (for example, by installing solar panels or improving insulation), the interest rate could go down. The mortgage provider could also receive a share of the home's appreciation. This model could encourage sustainable home improvements.

From all the above potential models, the original Anyone mortgage model is elected by Anyone to be our main focus as it seems to be most effective, efficient and legally doable as the 49/51 model resolves the tremendous liquidity issue that home buyers face, while delivering a higher return on capital allocated by mortgage providers.

However, we invite our dear readers to use the above models as inspiration to explore new opportunities to solve one of the greatest challenges starters face in a market that is becoming less and less inclusive and heading towards a massive liquidity crisis for existing stakeholders. We strongly believe that it’s in the best interest of everyone to start innovating around how we look at housing and most importantly home ownership to give people a fair chance to be able to have a stable and bright future.

Conclusion

The Anyone Mortgage model presents a unique opportunity for mortgage providers to revolutionize homeownership and address the housing crisis. By adopting this innovative model, mortgage providers can expand their customer base, diversify revenue streams, and enhance their reputation as industry leaders. This whitepaper calls upon mortgage providers to consider the Anyone Mortgage model as a means to create a more inclusive and sustainable future for homeownership.

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