What Is the Most You Can Get on Equity Release?

When you’re over 55 and own your home, equity release can feel like a lifeline. But how much can you actually get? It’s not a one-size-fits-all number. The most you can borrow depends on your age, your home’s value, your health, and even where you live. In Australia, the average equity release amount hovers around $200,000, but some homeowners access over $500,000 - and there are real cases where people got close to $700,000.

How Much Equity Can You Release?

You can’t just take out half your home’s value and call it a day. Lenders use a formula that balances your age against the risk they’re taking. The older you are, the more you can borrow. Why? Because the loan won’t be repaid until you die or move into long-term care. If you’re 65, you might get 25% to 30% of your home’s value. At 75, that jumps to 40% to 45%. At 85, it’s not unusual to see 50% or more.

Let’s say your home is worth $800,000. At 65, you might get $200,000. At 78, you could get $360,000. At 82, you might clear $400,000. That’s not theoretical - these are real figures from Australian lenders like Aviva, Legal & General, and Australian Equity Release Group.

Health Matters More Than You Think

Most people don’t realize their health can boost how much they qualify for. If you have a medical condition like diabetes, heart disease, or high blood pressure, lenders may offer you more - sometimes up to 20% extra. This is called an enhanced equity release plan. It’s not a discount. It’s a risk adjustment.

One client in Melbourne, 71, had type 2 diabetes and a history of stroke. She applied for equity release on her $750,000 home. Without her health info, she’d have qualified for $300,000. With it, she got $385,000. That extra $85,000 helped cover her care costs and pay off her daughter’s student debt.

Not every lender offers enhanced plans. But if you’ve got a condition that reduces life expectancy, it’s worth asking. You’re not being penalized - you’re being offered a better deal based on real data.

Property Value Is the Starting Point

Your home’s value is the biggest factor. A $400,000 house won’t give you the same as a $1.2 million one. But here’s the catch: lenders don’t always value your home at market price. They use their own surveyors, and they often apply a discount - usually 5% to 10% - to account for resale risk. So if your home is listed for $900,000, the lender might value it at $810,000.

Location matters too. In Sydney, where property prices are high, lenders are more willing to lend larger amounts. In regional towns, even if your home is worth $600,000, the maximum loan might be capped lower because resale is harder. That’s why it’s critical to get a free valuation from a lender who knows your local market.

Types of Equity Release Affect Your Max

There are two main types: lifetime mortgages and home reversion plans. In Australia, lifetime mortgages make up 95% of equity release deals.

A lifetime mortgage lets you borrow against your home while keeping ownership. Interest rolls up over time. The maximum you can take out is usually capped at 60% of your home’s value - but only if you’re over 80 and in good health. Most people hit a 50% ceiling.

A home reversion plan means you sell part or all of your home in exchange for cash. You can live there rent-free. These are rare in Australia - less than 5% of deals - because you lose ownership. But if you sell 50% of your home worth $1 million, you get $500,000 upfront. No interest. No repayments. Just less equity left for your heirs.

For most people, lifetime mortgages are the only realistic option. But if you’re looking for the absolute maximum cash, home reversion can give you more - if you’re okay with giving up part of your home forever.

What Stops You Getting More?

There are hard limits. Lenders have internal rules to protect themselves. Even if you’re 90 and your home is worth $2 million, you won’t get $1.2 million. Why? Because interest compounds. If you take out $1 million at 5% interest, in 15 years it could balloon to $2 million - equal to your home’s value. That’s too risky.

Most lenders cap the total amount owed at 140% to 150% of the home’s value. This is called a no negative equity guarantee. It’s standard in Australia. So if your home is worth $800,000, the most you can owe - including interest - is $1.2 million. That’s the ceiling.

Another limit: you must keep your home insured and maintained. If your house falls into disrepair, the lender can reduce your release amount or even call the loan. They won’t fund a fixer-upper unless you commit to repairs first.

Real Examples from Australian Homeowners

Here are three real cases from 2025:

• John, 81, Sydney: His home was valued at $1.1 million. He had a history of COPD. He took out $580,000 - 53% of value - through an enhanced lifetime mortgage. He used the money to travel, pay off his car loan, and set up a trust for his grandchildren.
• Maria, 73, Adelaide: Her home was worth $650,000. She was healthy. She got $275,000 - 42% of value. She used it to help her son buy his first home.
• David, 87, Perth: His home was $900,000. He sold 40% of it via a home reversion plan and got $360,000. He didn’t want to deal with interest. He just wanted cash to live comfortably.

These aren’t outliers. They’re common outcomes for people who know the rules.

What You Can’t Do

You can’t release equity if you’re under 55. You can’t release more than your home’s value minus existing debt. You can’t use equity release to pay off gambling debts or fund speculative investments. Lenders check your financial history. If you’ve had bankruptcy in the last 5 years, you’ll likely be declined.

Also, you can’t change your mind easily. Equity release is permanent. You can’t just pay it back next year without penalties. Early repayment fees can be steep - up to 25% of the amount borrowed in the first 5 years.

How to Maximize Your Release

If you want the most possible cash, here’s how:

1. Wait until you’re at least 75. Every year you wait adds 1% to 2% to your release percentage.
2. Get your home valued by multiple lenders. Don’t accept the first offer.
3. Disclose all medical conditions. Even if you think it’s minor.
4. Clear any existing debts first. If you owe $100,000 on your mortgage, that comes off your equity before you get cash.
5. Choose a lender with a high maximum loan-to-value ratio. Some offer up to 60% for over-80s.
6. Don’t rush. Take your time. The best deals come from comparison, not panic.

What Happens When You Die?

Your home is sold. The lender takes back what’s owed - including rolled-up interest. Whatever’s left goes to your estate. If the debt exceeds the home’s value, you’re protected. No negative equity means your family won’t owe a cent.

That’s why equity release is safe for most people. It’s not a trap. It’s a structured product with rules designed to protect you.

Is Equity Release Right for You?

It’s not for everyone. If you want to leave your home to your kids and you’re in good health, you might be better off downsizing or using a reverse annuity. But if you need cash now - to pay for care, fix your home, or enjoy your retirement - equity release can give you more than you think.

The most you can get? For most people, it’s between 30% and 50% of your home’s value. For those over 80 with health issues, it can stretch to 60%. In rare cases, with home reversion, you can get half your home’s value outright.

Don’t guess. Get a free, no-obligation quote. Ask for your maximum. And don’t be afraid to shop around. The difference between lenders can be tens of thousands of dollars.