Equity Release Calculator

Estimate how much you could access through equity release and see how it affects your estate value over time.

Your Equity Release Estimate
Maximum Accessible Equity

Estimated Estate Value

Note: This is a simplified estimate. Actual amounts depend on lender criteria, product type, and market conditions.

Interest compounds annually. Most products include a No Negative Equity Guarantee.

Key Considerations

Remember:

  • Most equity release products offer up to 50% of home value for seniors
  • Interest compounds over time, reducing your estate value
  • Higher interest rates significantly impact your estate
  • Always get independent advice from FCA-registered advisers
  • Consider alternatives like downsizing before committing

If you’re over 55 and own your home, you might be wondering how to unlock the cash tied up in your property without moving. Equity release lets you access that value while staying put. But not all options are the same. The best way to get equity release depends on your finances, family situation, and long-term goals. There’s no one-size-fits-all answer-but there are clear paths to avoid costly mistakes.

What equity release actually means

Equity release is a financial product that lets homeowners aged 55 or older borrow against the value of their home. You don’t make monthly repayments, and the loan-plus interest-is paid back when you die or move into long-term care. The most common types are lifetime mortgages and home reversion plans.

A lifetime mortgage is the most popular option. You take a lump sum or regular payments, and the debt grows over time as interest is added. You keep full ownership of your home. A home reversion plan means you sell part or all of your home to a provider in exchange for cash. You can usually stay living there rent-free, but you no longer own that share.

Both options reduce the value of your estate. That’s why it’s critical to understand how much you’ll leave to your family-and whether that matters to you.

How to choose the right equity release product

Not all equity release deals are created equal. Some charge 6% interest. Others cap how much the debt can grow. Some let you make voluntary payments. Others don’t. The best way to get equity release starts with comparing these features:

  • Interest rate: Fixed or variable? Look for deals under 5.5%-anything higher eats away at your equity fast.
  • No negative equity guarantee: This is non-negotiable. It means you’ll never owe more than your home’s value, even if property prices drop.
  • Drawdown options: Can you take money in stages? This saves you from paying interest on cash you don’t need yet.
  • Transferability: If you ever need to move, can the loan go with you? Most can’t, but some newer products allow it.
  • Early repayment fees: Some providers charge 25% or more if you pay back early. Avoid those.

For example, if you’re 70 and need $80,000 to pay off debts and help your grandkids, a drawdown lifetime mortgage lets you take $40,000 now and the rest later-only paying interest on what you’ve used. That could save you tens of thousands over time.

Why you need independent financial advice

By law, you must get advice from a specialist adviser registered with the Financial Conduct Authority (FCA). This isn’t a formality-it’s your protection. Many people regret their decisions because they didn’t understand the long-term impact.

Advisers check your full financial picture: your income, other assets, health, family plans. They’ll show you alternatives you might not have considered, like downsizing, selling a second property, or even a regular home equity loan if you still have income.

Some firms offer free initial consultations. But be careful: if they only push one product, they’re probably tied to a single provider. Look for advisers who work with multiple lenders and charge transparent fees-usually between $500 and $1,500. That’s a small price to avoid losing $100,000 in inheritance.

Two symbolic paths from a house: one leading to security and family, the other to debt and loss.

What happens to your home when you die?

When you pass away or move into care, your home is sold. The lender takes back the loan amount plus accumulated interest. Whatever’s left goes to your estate.

But here’s the catch: interest compounds. If you take out $100,000 at 5.8% interest, after 15 years, you owe around $240,000. If your home is worth $400,000, your heirs get $160,000. If it’s worth $300,000, they get nothing.

That’s why many people use equity release to pay off existing debts first. If you have a $50,000 mortgage at 4.5%, paying it off with equity release at 5.8% might seem worse-but you’re removing monthly payments. That frees up cash flow. For retirees on fixed incomes, that peace of mind matters more than the extra interest.

Common mistakes people make

People rush into equity release because they’re pressured by family, scared of running out of money, or misled by flashy ads. Here are the biggest errors:

  • Using it for short-term spending: Buying a new car or going on a luxury trip sounds good now, but it’s expensive in the long run. The interest compounds for decades.
  • Not telling your family: If your children find out after you’re gone that you’ve used up most of the home’s value, it causes resentment. Talk to them early.
  • Choosing based on the highest payout: The provider offering you the most cash is often the one with the worst terms. Always compare interest rates and guarantees.
  • Ignoring means-tested benefits: If you get Age Pension or other government support, taking a lump sum could reduce your payments. Always check with Centrelink before acting.

One client in Bondi, 72, took out $120,000 to fix up her home and pay for a new roof. She didn’t tell her kids. Five years later, the home sold for $1.1 million. After paying back $180,000, her children got $920,000. She’d made a smart, thoughtful decision.

Another client in Penrith took $150,000 to fund a holiday and buy a new TV. He didn’t understand the interest. When he passed away, the debt was $230,000. His home sold for $220,000. His children got nothing. He’d lost his legacy.

Alternatives to equity release

Before you commit, ask: is there another way?

  • Downsizing: Sell your big home, buy a smaller one, and pocket the difference. You get cash without debt. But you lose the home you’ve lived in for decades.
  • Home equity loan: If you still have income (like a part-time job or pension), you might qualify for a traditional loan with lower rates and fixed repayments.
  • Reverse annuity: Some providers offer monthly payments in exchange for a share of your home’s future value. Less common, but worth asking about.
  • Family support: Some families arrange informal loans or co-ownership. It’s not perfect, but it avoids interest and keeps the home in the family.

One woman in Wollongong sold her 4-bedroom house for $1.3 million and bought a 2-bedroom unit for $700,000. She kept $580,000 in cash. She used $200,000 to pay off debts, $150,000 to help her daughter with a deposit, and left the rest in a savings account. She’s happier, safer, and has more control.

Legal documents and a house model on a desk, with family softly visible in the background.

How to start the process

If you’re serious about equity release, here’s your step-by-step plan:

  1. Check your eligibility: You must be 55 or older, own your home, and have little or no existing mortgage.
  2. Use a free online calculator: Try the Equity Release Council’s tool to estimate how much you can release based on your age and property value.
  3. Get independent advice: Find an FCA-registered adviser through the Equity Release Council website. Ask them to compare at least three providers.
  4. Review the offer: Read the key facts document. It will show you the interest rate, projected debt, and what your heirs could inherit.
  5. Talk to your family: Even if you don’t want their input, they deserve to know what’s happening.
  6. Apply and complete legal checks: Your solicitor will review everything. Don’t skip this step.
  7. Receive your funds: Once approved, the money usually arrives within 4 to 8 weeks.

Don’t feel rushed. The whole process can take months. That’s fine. This isn’t a car purchase. It’s your home, your legacy, your future.

Is equity release right for you?

Equity release isn’t for everyone. It’s best for people who:

  • Own their home outright or have a small mortgage
  • Don’t plan to leave a large inheritance
  • Need cash for health, home repairs, or debt
  • Want to stay in their home for the rest of their life

It’s not right if you:

  • Plan to move soon
  • Have other assets you can sell
  • Want to leave a large inheritance
  • Can still work or get income from other sources

If you’re unsure, talk to an adviser. Not to sell you something. Just to help you see the full picture.

Can you get equity release if you still have a mortgage?

Yes, but you’ll need to use part of the equity release funds to pay off the existing mortgage. Most lenders require the mortgage to be cleared before the equity release loan is finalized. If your mortgage is small, this is usually straightforward. If it’s large, you might not get enough cash left over to make it worthwhile.

Does equity release affect my Age Pension?

It depends on how you take the money. If you take a lump sum and keep it in a bank account, it counts as an asset and could reduce your pension. If you take regular payments, they’re usually treated as income. Centrelink has specific rules-always check with them or a financial planner before proceeding.

Can I still move house after taking equity release?

Most traditional lifetime mortgages don’t allow you to move. But some newer products, called portable lifetime mortgages, do. These are rarer and often come with higher fees. If you think you might move in the future, ask your adviser specifically about portability before signing anything.

What happens if property values drop?

With a regulated lifetime mortgage, you’re protected by the No Negative Equity Guarantee. Even if your home’s value falls below the loan amount, you or your estate won’t owe the difference. This guarantee is required by law for all FCA-approved products.

Is equity release safe?

Yes-if you go through the right channels. Only use FCA-registered advisers and lenders who are members of the Equity Release Council. These providers follow strict rules on transparency, interest caps, and guarantees. Avoid cold callers, door-to-door salespeople, or deals that sound too good to be true. The system is safe when used properly.

Next steps if you’re considering equity release

Start by getting a free valuation of your home. Use a local real estate agent-not an online estimator. Then, book a no-obligation consultation with an FCA-registered equity release adviser. Bring your property title, recent bills, and a list of your financial goals.

Ask them: "What’s the worst-case scenario for my family?" and "What’s the best alternative I haven’t thought of?" If they don’t answer clearly, walk away.

Equity release can give you freedom in retirement. But it’s not a quick fix. It’s a long-term decision that affects your legacy. Take your time. Get good advice. Make sure it’s the right choice-for you, and for the people who will come after you.