Team Relocations Joins SIRVA

Team Relocations Is Now SIRVA Worldwide Relocation & Moving!

SIRVA as a global leader in moving and relocation services offers unmatched global breadth and innovative technology, complementing Team Relocations' longstanding reputation for high quality moving and relocation solutions to some of the world's leading multinational organizations.

Our resources combine the unique talents and expertise of leaders across a broad scope of mobility-related services. This synthesis is a key part of our commitment to provide our clients and their employees with the best moving and relocation experience possible.

By combining Team Relocations with SIRVA, we offer 75 office locations worldwide with over 2,900 employees operating in 180+ countries. Customers benefit from our:

  • End to End Service Delivery Model from departure to destination. We will help you with everything including visa and immigration, employee counseling and VIP services. Our relocation specialists are here to help. 
  • Client Advisory Services. We will work with you, according to your specific needs, to achieve more efficient and high-quality relocations. SIRVA offers a multitude of client financial services, from lump sum to expense management, which are designed to help ease the financial burden of relocating your employees. We can assist in compensation and payroll administrations, vendor management, intern management programs, group move management, and management reporting. 
  • Home and Mortgage Services. From home finding to tenancy management, we can help ease the process of moving and help relocating employees have one less thing to worry about.
  • Moving Services. We can help you and your employees get to where they need to be. Whether moving to a new house, a new office or trying to relocate a pet, we have the resources to help make the process go as smoothly as possible for your employees. 
  • Technology Solutions. Our innovative and flexible technology solutions have been developed you and your employees in mind: easy-to-use, intuitive and helps to save time and resources, whilst enhancing reporting capabilities. We continue to invest in order to improve the relocation process for both mobility teams and relocating employees. 


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Supporting Relocating Employees in a Rising US Interest Rate Environment

  • by Daina Mueller
  • Friday, November 11, 2022 9:01:00 AM

External factors, such as rising interest rates, can have a dramatic impact on a company’s ability to attract, retain, and move their key talent. Homeowners today may be reluctant to move due to rising interest rates if their current rate is less than the current market rate.

There are a number of approaches that companies can take to assist transferees in a rising rate environment, including: 

Four approaches

In this article we will discuss each of these approaches, with examples and pros and cons for each.

Options for Addressing Rising Interest Rates

Each of the following options directly addresses the challenges of higher interest rates and offers solutions that can have a positive impact on the employee’s mortgage payment. While there is no solution that will make the transferee “whole” or completely make up the rate difference, providing one of these options may increase the likelihood that the employee will accept the move.

These options may increase your relocation costs, but the amount of support can be controlled by using budgets or by putting a set of pre-determined criteria in place.

Mortgage Interest Differential Allowance 

A mortgage interest differential allowance (MIDA) is designed to assist with the gap between the employee’s new higher interest rate, and the lower interest rate they have on their existing mortgage. This benefit typically applies when the employee’s new mortgage rate is at least two percentage points higher when compared to the mortgage rate on the residence they are selling because of their relocation.

Support is provided for “same type” mortgages only (e.g., 30-year fixed to 30-year fixed, five-year adjustable to five-year adjustable, etc.). It is expected that the employee will apply 100% percent of the equity from the sale of their departure residence towards the down payment and non-reimbursable closing costs on the new residence. Any amount less than 100% can be deducted from the new mortgage amount when making the MIDA calculation.


The MIDA can be paid as a one-time payment, annually, quarterly, or monthly in equal or graduated installments.


Typically, a MIDA is provided for two years; however, programs can range from one to five years. The first payment is paid after both homes have closed and all necessary documentation has been provided.


There are various ways that a MIDA can be calculated:

  • Using the old mortgage balance
  • Using the new mortgage balance
  • Using the higher of the two mortgage balances
  • Using the lowest of the two mortgage balances

Example: Calculation for a two-year MIDA

The MIDA is based on either the old mortgage balance or the new mortgage amount, whichever is less. For example, if the old mortgage balance is $250,000 at an interest rate of 3.50%, and the new mortgage amount is $300,000 at an interest rate of 6.5%, the MIDA is calculated as follows:

  • 6.50%-3.50% = 3.0%; >2% therefore eligible for MIDA
  • Select the lower mortgage amount = $250,000
  • $250,000 x 3.0% (interest rate difference) X two years = $15,000

Mortgage Payment Differential

A mortgage payment differential (MPD) is a pre-determined amount of money that is used to supplement the employee’s mortgage payments for a period of time (typically two to three years). The payment may be evenly distributed or graduated over time. This option is intended to help the employee ease into a higher mortgage payment and is not tied to a change in their interest rate. An MPD is typically used as a solution for high-cost areas, but it can also be effective in a higher interest rate environment.

MPD programs are administered through participating lenders, like SIRVA Mortgage, who are coordinating the destination home purchase loan. Your organization would establish the pre-determined benefit amount, duration, and methodology of the support. SIRVA Mortgage, or your participating lender, would then apply a monthly amount for the duration of the benefit and effectively subsidize the monthly mortgage payment made by the transferee. The MPD cannot be used for any purpose other than to be applied to the transferee’s mortgage payment.

Example: Calculation for a $300,000 loan on a 30-year fixed rate at 6.50% with a $12,000 benefit (4% of the loan amount)

Year(s) Monthly P&I payment  Company's monthly  contribution   Employee's monthly P&I payment Company's annual  contribution
 1  $1,896.21 $500  $1,396.21 $6,000
 2  $1,896.21 $330 $1,566.21  $3,960
 3  $1,896.21 $170 $1,726.21  $2,040
 4 - 30  $1,896.21 $0 $1,896.21  $0
Total Company Contribution = $12,000


Mortgage Subsidy

A mortgage subsidy reduces the employee’s mortgage interest rate for a period of time. A participating lender would administer the mortgage subsidy for the duration of the benefit. Mortgage subsidy dollars cannot be used for any purpose other than to reduce (temporarily) the interest rate on the employee’s loan. The cost is determined once the interest rate is locked and the transferee has determined their exact loan amount. An option is to cap the buydown at a certain dollar amount. A mortgage subsidy is typically used as a solution for high-cost areas, but can also be effective in a higher interest rate environment.

Example: Calculation for a 3-year mortgage subsidy, for $300,000 mortgage, 30- year fixed rate of 6.5%

Year(s) Subsidized rate  Monthly *P&I payment   Company's monthly subsidy contribution  Employee's monthly *P&I payment @ subsidized rate Company's annual subsidy contribution
 1 3.50%  $1,896.21 $549.08 $1,347.13  $6,588.96
 2  4.50% $1,896.21 $376.15 $1,520.06  $4,513.80
 3  5.50% $1,896.21 $192.85  $1,703.36 $2,314.20
 4 - 30  6.50% $1,896.21 $0   $1,896.21 $0
Total Company Contribution = $13,416.96


*The subsidized rate paid by the employee is 3% below the note rate in the first year, 2% below the note rate in the second year, and 1% below the note rate in the third year.

Mortgage Points

Points are a way for a relocating employee to permanently buy down their interest rate and lower their monthly payment. One point is equal to 1% of the loan amount, so for a $300,000 mortgage loan, one point would cost $3,000. While the reduction in the interest rate may vary with the market, the most common result is that each point bought will reduce the mortgage rate by approximately 0.25%. The cost of points cannot be deferred and must be paid at the time of closing. While the up-front cost will be higher than it would be without points, the home buyer is trading the initial expense for ongoing lower monthly payments.

As part of a relocation, companies typically take one of the following approaches when providing points:

  • Provide a standard amount: 1 point or 2 points
  • Provide points on a sliding scale based on the current interest rate. The higher the interest rate, the greater the number of points provided
Interest Rate Point(s) 
 7% or less  0
 7.01% - 7.49%  1/2
 7.5% - 7.99%  1
 8% - 8.49%  1 1/2
 8.5% and above  2


  • Provide point(s) if the new interest rate is greater than the designated spread between the existing mortgage rate and current rate.

Interest Rate Spread Point(s) 
0 to 2%  0
2.01 to 3%  1/2
3.01 to 4%  1
4.01 to 5%  1 1/2
5.01% +  2


Interest Rate Cost of Point(s) Monthly Payment Interest Paid over 10 years Interest Paid over 30 Years
6.50% $0 $1,896.21 $181,872.87 $382.633.47
6.25% 1 point: $3,000 $1,847.15 $174,371.33  $364,974.58 
6.00%  2 points: $6,000 $1,798.65 $166,895.36 $347,514.57


Pros and Cons of Rising Interest Rate Approaches

Method Pros  Cons
Mortgage Interest Differential Allowance (MIDA)
  • Easy to administer
  • Can be cancelled at any time
  • Benefit ceases when the employee leaves the company
  • May cost more unless caps are in place
  • Tax assistance may be necessary
  • If SIRVA BGRS is administering, they  will need to be updated if employment is terminated, depending upon payment distribution
 Mortgage Payment Differential (MPD)
  • Easy to administer
  • Can be cancelled at any time
  • Directly impacts the employee’s mortgage payment
  • Flexible – allows the employer to designate a capped dollar amount and period of time for easing the employee into a higher payment
  • No rate, product, or program restrictions
  • Benefit ceases when the employee leaves the company
  • Tax assistance is not necessary
  • Only participating relocation lenders can administer
  • Lender will need to be updated if employment is terminated
 Mortgage Subsidy
  • Easy to administer
  • Can be cancelled at any time
  • Directly impacts the employee’s mortgage payment
  • Benefit ceases when the employee leaves the company
  • Tax assistance is not necessary
  • Product or program restrictions
  • The cost is harder to predict until the interest rate is secured and the loan amount determined
  • Lender will need to be updated if employment is terminated
  • Only participating relocation lenders can administer
  • Easy to administer
  • Directly impacts the employee’s mortgage payment
  • One-time expense paid at the time of loan closing
  • Flexible – can be set by an interest rate level or by a spread of origination and destination interest rates
  • Tax assistance is not necessary
  • Typically, 1 point only buys down the rate by .25%, depending on the market
  • Is a permanent buydown, therefore, if the transferee leaves the company, the transferee will continue to reap the benefit of the lower rate over the life of the loan


How Can You Assist Your Relocating Employees?

Using the methods outlined above can help you support your relocating employees in navigating this challenging market, have a positive impact on your employees’ mortgage payments, and improve the chances of the willingness of employees to relocate. Which solution you choose is dependent on your employees’ individual circumstances, and on your relocation strategy and budget.

Whatever the financing needs of your transferees may be, SIRVA Mortgage is here to help. With 30 years of focus and expertise in relocation mortgage lending, we understand the important role home financing plays in the relocation process. Please visit our mortgage website to learn more, or contact us, at


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