Passive Partnerships
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How your equity changes over time under different scenarios — home loan vs Passive Partnership

For the same home and deposit, how much equity does a Resident Owner build (or lose) over one year — with a home loan versus a Passive Partnership? Because a PP costs less each week, the difference is invested into buying more of your home. And when prices fall, a PP has no bank loan to sink you into negative equity. For the full explanation, read equity and house-price risk.

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Assume both pay the same total each week

 Home loanPassive Partnership

Changes in your equity value over the year — equity at start of year (calculated from the left-hand table)

 Home loanPassive Partnership

Starting with equity, see how it changes with different house-price changes

House pricesHome loanPassive Partnership

If interest rates change — the weekly payment

Interest rateHome loanPassive Partnership

Read the full explainerEquity and house-price risk: home loan vs Passive Partnership — how the leverage works, and why PP can never go into negative equity. →
Where to next — two calculators most worth a look Renting vs mortgage vs PP →See how buying with PP costs less each week than renting or a mortgage Below 20% & top-up →See what happens (and what's owed) if your share dips below the 20% minimum See all calculators →The full set — seven interactive models, every figure editable