A mortgage denominated in the market, not in dollars
A $960,000 loan over 30 years. Because the unit itself carries the reference return of a broad equity index, the only thing charged on top is the lender's margin — so the opening payment is lower whenever that margin sits below the conventional rate. Same term, same amortization shape; only the denomination differs.
Conventional at 6.50%
6.50% rate on a dollar mortgage
Level annuity in dollars. The payment never changes.
Market-unit mortgage at 2.50%
2.50% margin over the index
Payments track the index fully, in both directions — they can fall as well as rise.
Market-unit mortgage at 2.25%
2.25% margin over the index
Payments never fall, rise at most 10% per year, and the cap compounds — ten consecutive +10% years is ×2.59. Payment is fixed for each loan year.
The conventional 6.50% is a rate on a dollar loan. The 2.50% and 2.25% figures are a margin over the index — the charge on top of a unit that already carries the market's return. They are not the same kind of number and cannot be compared side by side as if they were.
Payment Trajectory
Total paid per loan year under the Steady growth index path. Market-unit payments move with the index; the bounded tier never falls and climbs at most 10% a year.
All five index paths at once
Opening and year-30 payments for both market-unit tiers. Downside and upside paths carry the same weight — none is more likely than another.
| Index path | Unbounded opening | Unbounded year 30 | Bounded opening | Bounded year 30 |
|---|---|---|---|---|
| Steady growth | $3,815 | $28,875 | $3,670 | $26,106 |
| Boom | $3,829 | $113,643 | $3,670 | $58,211 |
| 2022-style shock | $3,723 | $19,167 | $3,670 | $22,802 |
| Lost decade | $3,793 | $14,678 | $3,670 | $13,271 |
| Crash and recover | $3,659 | $39,111 | $3,670 | $52,919 |
Amortization Schedule
| Month | Payment | Interest | Principal | Unit Balance | Dollar Payoff |
|---|---|---|---|---|---|
| 001 | $3,814.61 | $2,011.31 | $1,803.30 | 958,207 units | $963,624.68 |
| 002 | $3,836.18 | $2,018.90 | $1,817.28 | 956,410 units | $967,255.88 |
| 003 | $3,857.87 | $2,026.51 | $1,831.36 | 954,609 units | $970,893.53 |
| 004 | $3,879.68 | $2,034.13 | $1,845.55 | 952,805 units | $974,537.56 |
| 005 | $3,901.62 | $2,041.77 | $1,859.85 | 950,997 units | $978,187.88 |
| 006 | $3,923.68 | $2,049.41 | $1,874.27 | 949,185 units | $981,844.44 |
| 007 | $3,945.86 | $2,057.07 | $1,888.79 | 947,369 units | $985,507.14 |
| 008 | $3,968.17 | $2,064.75 | $1,903.42 | 945,550 units | $989,175.92 |
| 009 | $3,990.61 | $2,072.44 | $1,918.17 | 943,726 units | $992,850.69 |
| 010 | $4,013.17 | $2,080.13 | $1,933.04 | 941,899 units | $996,531.38 |
| 011 | $4,035.86 | $2,087.85 | $1,948.01 | 940,068 units | $1,000,217.89 |
| 012 | $4,058.68 | $2,095.57 | $1,963.11 | 938,234 units | $1,003,910.16 |
Unit balance is the loan amount owed in index units; the dollar payoff translates that balance at the index level for the month.
Illustrative — not an offer of credit. Program in development.