If you own your home and want extra cash for retirement, equity release might be on your radar. It lets you unlock part of your house value without moving out. Think of it as a partner that pays you now while you keep living in the same place.
There are two main products: a lump‑sum payment and a draw‑down plan. With a lump sum, you receive a one‑off amount based on your age, mortgage balance, and property value. A draw‑down plan gives you a smaller amount at the start and lets you request more later, usually up to a set limit.
The money you get is added to the loan on your property. You won’t have to make monthly repayments; the loan and interest roll up until the house is sold – either when you pass away or move to care. At that point, the sale proceeds cover the debt and any remaining equity goes to your heirs.
Pros are clear: no monthly bills, immediate cash, and you stay in your home. It can fund home renovations, travel, or pay off high‑interest debt. The biggest downside is that the loan interest compounds, so the amount owed can grow quickly. Also, the equity you leave for your family shrinks.
Before you sign up, check these points:
Shop around and compare offers. Use a regulated adviser – they’re required to run a suitability assessment and can help you avoid hidden traps.
Another practical tip: ask for a “capped interest” product. It limits how much interest can accrue, giving you more certainty about the total debt.
Finally, keep your paperwork tidy. Lenders will need proof of ownership, a recent valuation, and evidence of age. Having these ready speeds up the process.
Equity release isn’t for everyone, but for many retirees it provides a way to enjoy the later years without the pressure of monthly loan payments. Weigh the trade‑offs, talk to an adviser, and decide if unlocking your home’s equity matches your retirement goals.
Learn the typical minimum credit score needed for an equity loan in Australia, how lenders assess risk, and practical steps to improve your chances or explore alternatives.
Read More >>
Not sure where to get equity release in 2025? See when to use a broker vs direct lender, how to compare deals, fees, and safeguards, plus practical next steps.
Read More >>
This article dives into the real reasons why tapping into your home's equity can cause more harm than good. You'll learn how borrowing against your house puts your future at risk, exposes you to higher debt, and can even threaten your home ownership. We'll unpack hidden costs, sneaky fees, and what happens if you hit unexpected money troubles. Rather than sugarcoating anything, you'll get straight talk about why equity release often leads to regret. You'll also get tips on safer ways to improve your finances.
Read More >>
Ever wondered if you’re on the hook for paying back the equity you pull from your home? This article breaks down how equity release works, the different options out there, and who’s responsible for repayment. We’ll also look at what happens if you move or pass away while you’ve still got money borrowed against your house. Get straight answers—no jargon, no confusion—so you can make smart decisions about your home’s value.
Read More >>
Equity release is a popular way for homeowners to access cash tied up in their property. But, what does repayment look like? This article digs into the ins and outs of equity release repayment, including how much you might expect to pay back, the repayment options available, and how different factors affect these costs. Whether you're considering a lifetime mortgage or a home reversion plan, understanding your repayment obligations can help you make informed financial decisions.
Read More >>
Seeking ways to manage debt can be daunting, but using home equity might be a viable solution. Releasing equity allows homeowners to convert part of their property's value into cash without selling their home. Understand the benefits and risks involved, compare different methods, and explore real-life experiences to make informed decisions. This article delves into practical steps to leverage equity release for debt management.
Read More >>