A type of mortgage that allows borrowers to take out loans against extra capital added into the account. In this sense, this bond treats a mortgage much like a savings account. It provides a balance to a savings account that is equal to the equity of the home/housing unit.

Such a bond enables mortgage holders to access the equity in their home loans. It represents borrowing against a home, so if the borrower fails to repay the loan, the lending bank can repossess the property.