Relocation Guide

A major component of corporate relocation programs has always been home sale assistance and purchasing a new residence at the transfer destination. As the market has evolved, demand for assistance with purchasing a new home has risen.

Relocation Home Purchase Assistance

Historically applicable to transferees who are already homeowners (though applicable to renters as well), home purchase assistance typically includes the employer:

• Reimbursing closing costs incurred when buying a home in the employee’s new location.
• Paying one or more points on the new mortgage.
• Setting up direct billing with the new mortgage lender to control and reduce administrative requirements.
• Extending a “bridge loan” to their employee if their former home is not sold in time for the move.
• Offering transferees home purchase assistance amounts relative to the new housing costs. This depends on the employer’s location.
• Providing a temporary “buydown” of prevailing interest rates for the first three to five years at the new location. This is most common in periods of rising interest rates.

While controlling relocation costs remains a top priority, employers must still hire and retain the most talented employees available. Adopting a relocation policy that effectively addresses these common issues can be a wise business decision.