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), Point costs 14.3% a year versus 15.9% for Unlock.
Point is cheaper at every growth rate we tested (-3% to 10% a year) over 7 years.
Point is also cheaper if you settle within 3 years or hold for 10.
Side by side
| Point | Unlock | |
|---|---|---|
| What they call it | Home Equity Investment (HEI) | Home Equity Agreement (HEA) |
| How you repay | Share of your home's gain, measured from a starting value set below your appraisal | Share of your home's future value, set with an exchange rate |
| Cash available | $30K to $600K | $15K to $500K |
| Max share of home value | Not published | Not published |
| Equity you must keep | Not published | 30% after funding |
| Fee | Up to 3.9% (minimum $2,000) | Up to 4.9% Exchange rate and cap from a third-party review |
| Cost cap | 18% a year | 19.9% a year |
| Term | Up to 30 years | 10 years |
| Minimum credit score | 500 | 500 |
| Shares losses if value falls | Yes, below the starting value | Yes, you owe a share of a lower value |
Full reviews: Point · 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 | |||
|---|---|---|---|---|---|---|
| Point | Unlock | Point | Unlock | Point | Unlock | |
| 0% a year | 20.2% | 22.6% | 8.3% | 11.5% | 5.7% | 7.9% |
| 2% a year | 20.2% | 22.6% | 11.3% | 13.7% | 8.7% | 10.0% |
| 4% a year | 20.2% | 22.6% | 14.3% | 15.9% | 11.5% | 12.2% |
| 6% a year | 20.2% | 22.6% | 17.1% | 18.1% | 14.1% | 14.4% |
| 8% a year | 20.2% | 22.6% | 18.9% | 20.4% | 16.7% | 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: Point: share of your home's gain, measured from a starting value set below your appraisal. Unlock: share of your home's future value, set with an exchange rate.
- Time to settle: Point up to 30 years; Unlock 10 years.
- Cost cap: Point 18% a year; Unlock 19.9% a year.
- Starting value: Point measures gain from 27% below your appraisal.
Which fits you
- Your home may not appreciate much: Point (8.3% vs 11.5% at 0% over 7 years).
- You expect strong growth: Point (18.9% vs 20.4% at 8% over 7 years).
- You might settle within 3 years: Point (20.2% vs 22.6%).
- You need more than 10 years: Point, which allows up to 30 years.
Questions
Is Point or Unlock cheaper?
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, 7 years), Point costs 14.3% a year versus 15.9% for Unlock. Point is cheaper at every growth rate we tested (-3% to 10% a year) over 7 years.
Which is better if I settle early, Point or Unlock?
Settling after 3 years at 4% growth, Point costs 20.2% a year versus 22.6%.
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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