Head-to-head

Unlock vs Unison: which costs less?

How Unlock and Unison 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), Unison costs 14.7% a year versus 15.9% for Unlock.

Unison is cheaper below about 5.1% annual growth; Unlock is cheaper above it (settling after 7 years).

Settle within 3 years and Unison is cheaper; hold for 10 and Unlock is.

Side by side

UnlockUnison
What they call itHome Equity Agreement (HEA)Equity Sharing Agreement
How you repayShare of your home's future value, set with an exchange rateShare of your home's change in value, up or down
Cash available$15K to $500KUp to $500K
Max share of home valueNot published15%
Equity you must keep30% after fundingNot published
FeeUp to 4.9% Exchange rate and cap from a third-party reviewUp to 3.9%
Cost cap19.9% a yearNone published
Term10 yearsUp to 30 years
Minimum credit score500Not published
Shares losses if value fallsYes, you owe a share of a lower valueYes

Full reviews: Unlock · Unison. 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
UnlockUnisonUnlockUnisonUnlockUnison
0% a year22.6%8.3%11.5%3.5%7.9%2.4%
2% a year22.6%15.2%13.7%9.6%10.0%8.2%
4% a year22.6%21.6%15.9%14.7%12.2%12.7%
6% a year22.6%27.6%18.1%19.1%14.4%16.5%
8% a year22.6%33.3%20.4%23.1%16.5%20.0%

Ten-year agreements are shown at year 10 when you'd hold longer. Open this example in the calculator.

Key differences

  • How you repay: Unlock: share of your home's future value, set with an exchange rate. Unison: share of your home's change in value, up or down.
  • Time to settle: Unlock 10 years; Unison up to 30 years.
  • Cost cap: Unlock 19.9% a year; Unison publishes none.
  • Starting value: Unison measures gain from 5% below your appraisal.
  • How much you can take: Unlock doesn't publish a limit; Unison up to 15% of your home's value.
  • Credit: Unlock minimum 500; Unison doesn't publish one.

Which fits you

  • Your home may not appreciate much: Unison (3.5% vs 11.5% at 0% over 7 years).
  • You expect strong growth: Unlock (20.4% vs 23.1% at 8% over 7 years).
  • You might settle within 3 years: Unison (21.6% vs 22.6%).
  • You need more than 10 years: Unison, which allows up to 30 years.

Questions

Is Unlock or Unison cheaper?

In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, 7 years), Unison costs 14.7% a year versus 15.9% for Unlock. Unison is cheaper below about 5.1% annual growth; Unlock is cheaper above it (settling after 7 years).

Which is better if I settle early, Unlock or Unison?

Settling after 3 years at 4% growth, Unison costs 21.6% 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.