How Equity Release Works

A step-by-step guide to releasing equity from your home in New Zealand, covering both home reversion and reverse mortgage processes.

Eligibility Requirements

General Requirements

Age 60 or older (some providers require 65+)
Own your home outright or small mortgage remaining
Property must be your main residence
Property in good condition and acceptable location

Property Requirements

Standalone house or townhouse (usually)
Minimum value typically $300,000+
Located in main urban areas (varies by lender)
Standard construction and no major defects

The Equity Release Process

1

Initial Research & Advice

Start by understanding your options and getting independent financial advice. Consider your goals, family situation, and long-term needs.

What to consider:

  • • How much money do you need?
  • • What will you use the money for?
  • • How important is leaving an inheritance?
  • • Do you prefer no debt or maximum cash?
2

Property Valuation

Get a professional valuation of your property. This determines how much equity is available and forms the basis of all offers.

Valuation factors:

  • • Location and local market conditions
  • • Property size, condition, and features
  • • Recent sales of comparable properties
  • • Future saleability and market appeal
3

Application & Assessment

Apply with chosen providers. They'll assess your eligibility, property suitability, and provide formal offers.

Assessment includes:

  • • Age and health verification
  • • Property inspection and valuation
  • • Financial background checks
  • • Legal title verification
4

Legal Process & Settlement

Once you accept an offer, lawyers handle the legal documentation. This typically takes 4-8 weeks to complete.

Legal requirements:

  • • Independent legal advice mandatory
  • • Cooling-off period (usually 10 days)
  • • Property title updates
  • • Final documentation signing

Typical Timeline

1-2

Weeks

Research, advice & initial applications

2-3

Weeks

Valuations & formal offers

4-6

Weeks

Legal process & documentation

Settlement

Receive your funds

Your Protections

Legal Safeguards

  • • Mandatory independent legal advice
  • • 10-day cooling-off period
  • • Right to stay in home for life
  • • No negative equity guarantees (most loans)

Regulatory Oversight

  • • RBNZ supervision of lenders
  • • Credit Contracts and Consumer Finance Act protection
  • • Financial Markets Authority oversight
  • • Banking Ombudsman complaint process

Calculate Your Options

See estimated amounts you could release with our calculator tool

Try Calculator

Compare All Options

See detailed side-by-side comparison of home reversion vs reverse mortgages

Compare Options

Costs and Fees

Typical Costs

Property Valuation

$800 - $1,500 (usually paid by provider)

Legal Fees

$2,000 - $4,000 (your solicitor)

Application Fee

$0 - $500 (varies by provider)

Ongoing Costs

Interest (Reverse Mortgage)

Compounds annually, typically 6-8%

Property Maintenance

You remain responsible for upkeep

Insurance & Rates

Ongoing property costs continue

Common Mistakes to Avoid

❌ Rushing the Decision

Take time to understand all options and implications. This is a major financial decision affecting your estate.

❌ Not Getting Independent Advice

Always use your own financial adviser and solicitor, not those recommended by the provider.

❌ Ignoring Family Impact

Discuss plans with family members who may be affected by reduced inheritance.

❌ Not Comparing All Options

Consider downsizing, family loans, or government assistance before equity release.

Ready to Start Your Equity Release Journey?

Begin with our free assessment tool or explore our comprehensive guides to make an informed decision.

Start Free AssessmentRead Ultimate Guide