FAQ

Unlocked Equity is an Australian company specialising in helping Australians through retirement. We help you unlock the value in your home to live better, longer.

Unlocked Equity is led by a team of industry experts with decades of experience in financial services. It is an Australian-owned and registered company and operates in compliance with the Corporations Act 2001.

An Unlocked Equity Agreement is a product designed to give Australians over 60 a safe, transparent way to access their home equity as regular cashflow.

It involves entering an agreement to provide Unlocked Equity with a future share in the sale proceeds of your home. You remain the 100% legal owner of your property throughout the entire agreement.

With an Unlocked Equity Agreement, you remain the 100% legal owner of your property throughout the entire agreement. Unlocked Equity is only entitled to a share of the proceeds when the property is eventually sold.

There are no hidden fees or charges outside of the agreed schedule. Most importantly, Unlocked Equity can never claim more than the maximum share of equity you have agreed to release.

It is important to us that you understand what is being agreed to. That is why we require all customers to receive independent legal advice before signing, and we encourage you to talk to family and seek financial advice.

Any Australian resident over the age of 60 who owns their own home can apply. You do not need to be retired to enter into an Unlocked Equity Agreement.

Unlike a reverse mortgage, an Unlocked Equity Agreement is not a debt product. You are not borrowing money or accruing interest charges throughout your retirement.

With a reverse mortgage, you take on debt that charges interest over time, making the final amount owed unpredictable and potentially much larger than your original borrowing.

An Unlocked Equity Agreement works differently. You agree upfront on the percentage of equity you are releasing over time, regardless of how long you live in your home.

Reverse mortgages can involve ongoing fees, interest rates and complex calculations that are difficult to understand. An Unlocked Equity Agreement is transparent, with no hidden fees, establishment charges or compounding interest. You receive regular cashflow while knowing exactly what share of your property's future sale proceeds will go to Unlocked Equity.

An Unlocked Equity Agreement is designed to be a safe and transparent way to access your home equity and there are some important considerations to understand before proceeding.

Reduced inheritance: An Unlocked Equity Agreement will reduce the amount your estate receives from your property sale, as Unlocked Equity receives an agreed share of the proceeds to fund your payments.

Property sale: Unless Unlocked Equity's share is bought out, the home must be sold once you vacate the property. Unlocked Equity retains the right to appoint the real estate agent from a panel of partners to act on your behalf.

Age Pension: An Unlocked Equity Agreement has been designed to complement your Age Pension. Your individual circumstances determine any effect on your entitlements, so we recommend speaking with Centrelink or your financial adviser before proceeding.

Payment interruption: If Unlocked Equity is unable to make the agreed payments, no further equity will accrue to Unlocked Equity until payments resume.

Downsizing forces you to leave your home to access its value. An Unlocked Equity Agreement lets you stay in your familiar home and community while still accessing your property's equity as cashflow.

Downsizing also involves significant costs and effort associated with selling your current property, buying a smaller one, and physically relocating your entire life.

Unlocked Equity makes money from its agreed ownership share of your home and the proceeds from its sale.

The agreed equity schedule of your Unlocked Equity Agreement also covers all establishment and ongoing service costs, so there are no extra fees or costs payable by you.

An Unlocked Equity Agreement is a home equity release product that enables you to release a portion of your home's value (equity) in exchange for providing Unlocked Equity with a future share in the sale proceeds of the property.

You remain the 100% legal owner of your property throughout the entire agreement and receive an upfront schedule that details the annual payments you will receive and the percentage of equity released.

At any time, you can decide to sell your property or buy out your Unlocked Equity Agreement. If your home is sold, Unlocked Equity will receive its agreed share from the sale proceeds. If you buy out the agreement, the value of the buy-out will be based on an independent valuation.

Below is an outline of how the agreement works. We encourage you to speak with one of our Customer Care team to clarify any questions.

You decide how much to receive in regular cash payments each year, over a term agreed with Unlocked Equity. Your contract term is based on a range of factors including your age, gender, and the state you live in.

Your contract contains a schedule that outlines upfront how much equity you will release with each payment and allows you to specify the maximum percentage of equity you agree to release.

We understand that life happens — you may need to move, downsize or experience other life events. That is why you can exit the agreement without penalty at any time and choose either to sell the property or buy out your contract.

You can also access a one-off cash amount upfront in addition to the regular payments. This is a useful option for funding one-off expenses that help you make the most of your retirement.

Agreed equity release: you decide the percentage of equity you want to release, removing any guesswork.

Certainty: no matter how long you live in your property, or what happens to its value, the maximum percentage you release is agreed from the start.

Flexibility: you can exit the agreement without penalty at any time by selling your property or buying out your contract.

Debt-free: no interest or repayments until the property is sold.

Live where you want: stay in the comfort of your familiar home and community for as long as you wish.

More cashflow: keep more money in your pocket in a way designed to complement the Age Pension.

Retain control: you choose how much equity you release and how much you leave to your estate.

Tax-efficient: payments are not treated as income for tax purposes. Your individual tax position depends on your circumstances, so we recommend speaking with a tax professional or financial adviser.

Flexible access: you can access an upfront capital amount as well as regular payments.

Ownership: you remain the sole legal owner of your property until you choose to sell or buy out the agreement.

Transparency: all fees and charges are included in your agreed equity percentage, meaning you can leave when you want without break penalties or exit fees.

To be eligible for an Unlocked Equity Agreement, you must be:

Aged 60 or older, either single or in a couple relationship.

An Australian resident.

Resident in NSW, ACT, Victoria or Queensland.

And you must:

Own 100% of your property outright and be registered on the Certificate of Title (or equivalent).

Have a current home insurance policy covering the replacement value of the building.

The signatories to the Unlocked Equity Agreement must match the parties listed on the property deed. Couples must be in a married or de facto relationship; Unlocked Equity is not available to friends or other relatives.

The property must be available for houses or freestanding property of less than one hectare.

An Unlocked Equity Agreement is based on economic modelling of expected future property market conditions. There is currently more reliable data and information on freestanding homes than on other types of dwellings. In future, Unlocked Equity may look to expand its offering to other property types.

You can buy out the Unlocked Equity Agreement at any time. The buy-out figure will be based on the percentage of equity that Unlocked Equity has accrued to date, combined with the property value at the time of buy-out.

The property value will be determined by an independent property valuation.

No. Unlocked Equity has a right to a share of the future proceeds of sale. You maintain 100% ownership until the property is sold. As part of setting up the agreement, Unlocked Equity will register a security over the property to protect its interest under the agreement.

You are required to keep your property in good order throughout the agreement, and the building must be insured at all times.

Any capital improvements to the home will ultimately be reflected in the value of the property and incorporated into the final equity percentage as per the agreed formula.

You can leave your property at any time. There are no financial penalties or exit fees for leaving at any point during the agreement.

When you have made the decision to leave, you can either sell the property or buy out your Unlocked Equity Agreement. In both scenarios, Unlocked Equity will be entitled to the share of the property it has accrued to date. This share is set out in your contract schedule.

If your property is to be sold, you or your estate will select an agent from a panel of quality real estate agents in your area. This is designed to achieve the best possible sale value. Once the property is sold, you or your estate will receive the proceeds, less the accrued Unlocked Equity share and any deductions allowed under the agreement.

If you or your estate wish to buy out your Unlocked Equity Agreement, you can do so at any time. The buy-out figure is based on the percentage of equity Unlocked Equity has accrued to date, combined with the property value at the time of buy-out. The property value will be determined by an independent property valuation.

Unlocked Equity earns most of its return through its share of the sale proceeds. It is therefore important that the property sells for the highest possible price, which benefits you, your beneficiaries and Unlocked Equity.

By selecting from our panel of quality real estate partners, all parties can be confident the property is being marketed to achieve its full value. You retain full control over accepting any final sale offer. Unlocked Equity cannot force you to accept an offer.

Unlocked Equity may receive a share of the standard sale commission charged by the nominated agency, as disclosed at the time of engaging the agent.

The goal of the sale process is to achieve the highest possible price in the shortest reasonable time. For this reason, Unlocked Equity requires you to select from a panel of quality real estate partners in your area.

You retain full control over accepting any final sale offer. Unlocked Equity cannot force you to accept an offer. Unlocked Equity may receive a share of the standard sale commission charged by the nominated agency, as disclosed at the time of engaging the agent.

You can sell your property to whomever you choose, on the basis of market value at the time of sale.

If you wish to sell to a family member or friend, an independent property valuation must occur (or have occurred in the prior 30 days), and the sale price must be at least the value determined by that valuation.

No. You retain 100% legal ownership of your property and can live in it for as long as you wish.

However, once you and any other party listed on your Unlocked Equity Agreement cease to occupy the property, it must be sold or Unlocked Equity's share bought out.

For example, if you and your spouse have passed away, it must be sold. If your estate wishes to maintain ownership, it can complete a buy-out of the contract balance.

Once your property stops being your primary place of residence, it must be sold or Unlocked Equity's share bought out.

If you decide to leave the property vacant for more than 30 days and it remains your primary place of residence, please contact our team to let us know.

Yes. You must maintain appropriate property insurance throughout your Unlocked Equity Agreement. You will be asked to provide a currency of insurance certificate each year, ensuring it covers the replacement cost of your building.

Property insurance protects both you and Unlocked Equity by ensuring the value of your property is protected in the event of an unforeseen incident such as flood or fire.

We recommend speaking with an independent professional adviser to consider whether an Unlocked Equity Agreement is right for you, including any potential impact on your Age Pension entitlements or your estate planning goals.

We require all customers to seek independent legal advice as part of entering into an Unlocked Equity Agreement.

We also strongly encourage you to discuss your plans with loved ones and other beneficiaries. This avoids surprises and unnecessary difficulties for those you care about when managing an estate. We will provide you with information you can share with your family before deciding to proceed.

Your Unlocked Equity Agreement has a 30-day cooling-off period that allows you to reconsider entering the contract. We would encourage you to talk with us first to understand your options.

If you choose to terminate within the first 30 days, you can repay the amount you have received plus an application fee. If you are outside the cooling-off period, standard exit terms apply — that is, selling your property or completing a buy-out (see above).

Yes. All customers are required to have their Unlocked Equity Agreement countersigned by a legal representative. This ensures that you fully understand your contract before entering into it.

An Unlocked Equity Agreement has been designed to complement your Age Pension. Whether it affects your individual entitlement depends on your personal circumstances, so we recommend seeking independent advice from Centrelink or your financial adviser before proceeding.

Complaints can be raised with our Sales & Service team by phone, or sent to hello@unlockedequity.com.au.

Unlocked Equity uses independent property valuation professionals who rely on comparable market data and analysis for your area. If you are not satisfied with the valuation, you have the right to request an alternative independent valuation at your expense.

An Unlocked Equity Agreement is separate from your superannuation. It does not affect your super balance, contributions, or fund entitlements. If you have specific questions about your superannuation, we recommend speaking with your financial adviser or superannuation fund.

Payments you receive under an Unlocked Equity Agreement are not treated as income for tax purposes, as they represent an advance against a future share of your home's sale proceeds rather than earnings.

Your home is also generally exempt from capital gains tax under the main residence exemption.

Together, this means an Unlocked Equity Agreement can be a tax-efficient way to access your home equity. Your individual tax position depends on your circumstances, so we recommend speaking with a tax professional or financial adviser before proceeding.

Yes, as long as you meet the minimum age requirement of 60 years, you can enter into an Unlocked Equity Agreement. We would recommend you seek advice in relation to any impacts on social security entitlements you may have.

Unlocked Equity does not provide personal financial advice. We are happy to help you understand the product itself. We also require you to speak with a legal professional before signing the contract, as part of our application process, to ensure you fully understand the agreement you are entering into.

We recommend identifying your own legal professional. If you are having trouble finding one, we can help by identifying relevant experts in your state. Unlocked Equity does not receive any financial benefit from these referrals.

Yes. Unlocked Equity currently requires you to have no mortgage registered against the title of your home. If you would like more information specific to your circumstances, we recommend seeking financial advice.