Amazon employees will reportedly gain the ability to use company shares as collateral when buying homes, in a new arrangement with online mortgage lender Better.com.

In an interview with the Wall Street Journal (WSJ), Better.com said its ‘Equity Unlocker’ product will grant Amazon’s employees the ability to pledge stock for loans for downpayments, instead of having to sell the stock to raise funds.

Better.com said that to protect itself from declines in Amazon’s stock price, it will charge a higher rate on the mortgages of employees who pledge stock, at between 0.25 and 2.5 percentage points above the market rate.

However, Better.com chief executive Vishal Garg told the newspaper that unlike in stock-based loans that carry the risk of margin calls, requiring borrowers put up more collateral or sell assets to reduce debts, Amazon employees’ loan arrangements would be protected if the stock price slides.

An Amazon spokesperson said the new service aligns with its benefits programme as it seeks to care for the financial wellness, mental wellness and physical wellness of its employees and encourage them to “think like owners”.

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