Head-to-head

Point vs Unlock: which costs less?

How Point and Unlock compare on terms, on cost at different growth rates and timelines, and on who each one fits.

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

PointUnlock
What they call itHome Equity Investment (HEI)Home Equity Agreement (HEA)
How you repayShare of your home's gain, measured from a starting value set below your appraisalShare of your home's future value, set with an exchange rate
Cash available$30K to $600K$15K to $500K
Max share of home valueNot publishedNot published
Equity you must keepNot published30% after funding
FeeUp to 3.9% (minimum $2,000)Up to 4.9% Exchange rate and cap from a third-party review
Cost cap18% a year19.9% a year
TermUp to 30 years10 years
Minimum credit score500500
Shares losses if value fallsYes, below the starting valueYes, 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.

Growth3 years7 years10 years
PointUnlockPointUnlockPointUnlock
0% a year20.2%22.6%8.3%11.5%5.7%7.9%
2% a year20.2%22.6%11.3%13.7%8.7%10.0%
4% a year20.2%22.6%14.3%15.9%11.5%12.2%
6% a year20.2%22.6%17.1%18.1%14.1%14.4%
8% a year20.2%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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HEI Compare and HEI Calculator are sister sites run by the same independent team. Both use the same provider terms and the same cost model. About us.