The short answer
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, settled after 7 years), Hometap costs 14.1% a year versus 15.9% for Unlock.
Hometap is cheaper at every growth rate we tested (-3% to 10% a year) over 7 years.
Settle within 3 years and Unlock is cheaper; hold for 10 and Hometap is.
Side by side
| Hometap | Unlock | |
|---|---|---|
| What they call it | Home Equity Investment | Home Equity Agreement (HEA) |
| How you repay | Share of your home's total value at settlement | Share of your home's future value, set with an exchange rate |
| Cash available | $15K to $600K | $15K to $500K |
| Max share of home value | 27% | Not published |
| Equity you must keep | 25% after funding | 30% after funding |
| Fee | Up to 4.5% Fee from a third-party review | Up to 4.9% Exchange rate and cap from a third-party review |
| Cost cap | 18.5% a year, compounded monthly | 19.9% a year |
| Term | 10 years | 10 years |
| Minimum credit score | 585 | 500 |
| Shares losses if value falls | Yes, you owe a share of a lower value | Yes, you owe a share of a lower value |
Full reviews: Hometap · Unlock. Sources for every term.
Cost at different growth rates and timelines
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. The cheaper of the two is highlighted.
| Growth | 3 years | 7 years | 10 years | |||
|---|---|---|---|---|---|---|
| Hometap | Unlock | Hometap | Unlock | Hometap | Unlock | |
| 0% a year | 20.6% | 22.6% | 9.7% | 11.5% | 6.7% | 7.9% |
| 2% a year | 22.7% | 22.6% | 11.9% | 13.7% | 8.8% | 10.0% |
| 4% a year | 22.7% | 22.6% | 14.1% | 15.9% | 11.0% | 12.2% |
| 6% a year | 22.7% | 22.6% | 16.3% | 18.1% | 13.1% | 14.4% |
| 8% a year | 22.7% | 22.6% | 18.5% | 20.4% | 15.2% | 16.5% |
Ten-year agreements are shown at year 10 when you'd hold longer. Open this example in the calculator.
Key differences
- How you repay: Hometap: share of your home's total value at settlement. Unlock: share of your home's future value, set with an exchange rate.
- Cost cap: Hometap 18.5% a year, compounded monthly; Unlock 19.9% a year.
- How much you can take: Hometap up to 27% of your home's value; Unlock doesn't publish a limit.
- Credit: Hometap minimum 585; Unlock minimum 500.
Which fits you
- Your home may not appreciate much: Hometap (9.7% vs 11.5% at 0% over 7 years).
- You expect strong growth: Hometap (18.5% vs 20.4% at 8% over 7 years).
- You might settle within 3 years: Unlock (22.6% vs 22.7%).
Questions
Is Hometap or Unlock cheaper?
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, 7 years), Hometap costs 14.1% a year versus 15.9% for Unlock. Hometap is cheaper at every growth rate we tested (-3% to 10% a year) over 7 years.
Which is better if I settle early, Hometap or Unlock?
Settling after 3 years at 4% growth, Unlock costs 22.6% a year versus 22.7%.
More comparisons
Run your own numbers
Every figure here uses a standard example. The calculator runs your home, your mortgage, and your assumptions through every provider at once.
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