What Is the Maximum Equity Release You Can Get in 2026?

When you’re over 55 and own your home, equity release lets you unlock cash tied up in your property without moving. But how much can you actually take out? The maximum equity release isn’t a fixed number-it depends on your age, property value, health, and lender rules. In 2026, most people can release between 20% and 60% of their home’s value, but some cases go higher under special conditions.

How Much Equity Can You Release?

The amount you can release is calculated using a simple formula: your home’s value multiplied by a percentage based on your age and health. For example, if your house is worth $600,000 and you’re 65, you might qualify for 35% of that-$210,000. If you’re 75, that percentage jumps to 45%, giving you $270,000. At 85, it could hit 55% or more, meaning $330,000.

These percentages aren’t random. Lenders use actuarial tables to estimate how long you’ll likely live. The longer they expect you to live, the less they’ll lend upfront because they need to protect their return when the loan is repaid-usually after you pass away or move into long-term care.

There’s also a cap on total borrowing. Most lenders won’t let you borrow more than 60% of your home’s value, even if you’re 90. That’s because the loan balance grows over time due to compound interest. If you borrowed 70%, the debt could eventually exceed the property’s value, leaving nothing for your heirs.

Age Is the Biggest Factor

You must be at least 55 to qualify for equity release in Australia and the UK. But age isn’t just a checkbox-it’s the main driver of how much you get. The older you are, the more you can release. Here’s what typical limits look like in 2026:

• 55-59: 20-25% of property value
• 60-64: 25-30%
• 65-69: 30-38%
• 70-74: 38-45%
• 75-79: 45-52%
• 80-84: 52-58%
• 85+: 58-60%

These aren’t exact numbers. Each lender has its own scale. Some offer higher percentages for people with certain medical conditions. If you have diabetes, heart disease, or a history of stroke, you might qualify for an enhanced equity release plan. These can boost your payout by 10-25% compared to standard rates.

Property Value Matters Too

You can’t release more than your home is worth. Lenders require a professional valuation, and they’ll use the lower of the sale price or the valuation. If your house is worth $400,000 but you think it’s worth $500,000, you’re still capped at $400,000.

Location also plays a role. In high-value areas like Brisbane’s inner suburbs, Sydney’s North Shore, or Melbourne’s bayside, you’re more likely to hit the maximum 60% because lenders see lower risk. In regional towns where property values are lower and harder to sell, lenders may cap you at 50% or even less.

Some lenders also set minimum property values. If your home is worth less than $70,000, you won’t qualify for most equity release products. That’s because the cost of administering the loan doesn’t make sense for tiny payouts.

Health Can Increase Your Maximum

Many people don’t know this: if you’re in poor health, you can get more money. Enhanced equity release plans are designed for people with conditions that shorten life expectancy. These include:

• Chronic obstructive pulmonary disease (COPD)
• Advanced diabetes with complications
• Heart failure or recent heart attack
• Stage 3 or higher cancer
• Severe mobility issues requiring a wheelchair
• Diagnosis of dementia or Alzheimer’s

If you qualify, you might get an extra 10% to 25% on top of your standard rate. For example, a 70-year-old with heart disease might get 50% instead of 38%. That could mean an extra $50,000-$100,000 on a $500,000 home.

You’ll need to provide medical records or a doctor’s letter. The lender will review your history-not just your current symptoms. Some providers even have in-house medical teams who assess your file.

How Interest Affects the Maximum

Equity release loans are usually lifetime mortgages with compound interest. That means interest builds up over time and gets added to the loan balance. The longer you live, the more the debt grows.

Lenders calculate your maximum based on how much the debt could grow over your expected lifetime. If interest rates are high-say 6% or more-they’ll lend you less. If rates are low-around 4% or less-they can afford to lend more.

In 2026, average interest rates for equity release are between 4.8% and 6.2%. That’s higher than standard mortgages but still lower than credit cards or personal loans. The key is understanding that the maximum amount you’re offered today isn’t what you’ll owe in 10 years. It could double or even triple.

Other Limits and Rules

There are other hidden limits you should know about:

• No negative equity guarantee: All regulated equity release products in Australia and the UK promise you’ll never owe more than your home sells for. Even if the debt grows beyond the property value, your family won’t be on the hook.
• Minimum loan amounts: Most lenders require you to take at least $10,000-$15,000. Smaller amounts aren’t worth the setup cost.
• Existing mortgages: If you still have a mortgage, you must pay it off with your equity release funds. You can’t keep both.
• Property type: Only standard homes qualify. Mobile homes, park homes, and properties with unusual structures (like treehouses or converted barns) are usually rejected.
• Joint applications: If you apply with a partner, the lender uses the younger person’s age to calculate the limit. That means you might get less than if you applied alone.

What Happens When You Die?

When you pass away, your home is sold. The lender takes back the loan balance plus interest. Anything left over goes to your estate. That’s why many people choose equity release-they want to enjoy money now without worrying about leaving debt behind.

Some plans let you set aside a portion of your home’s value as a guaranteed inheritance. For example, you might release 40% now and protect 20% for your children. That reduces your upfront cash but gives your family peace of mind.

It’s not a gift-it’s a trade-off. You’re choosing between spending money now or leaving more behind. That’s why financial advice is required before you sign anything.

Why You Need Independent Advice

By law, you must get advice from a qualified equity release adviser. They’re not salespeople. They’re regulated by the Financial Conduct Authority (FCA) or equivalent Australian bodies. Their job is to compare lenders, explain risks, and make sure you’re not taking more than you need.

Many people regret taking out too much too soon. They end up with no cash left for future care, medical bills, or emergencies. Others don’t realize how fast compound interest adds up. A $200,000 loan at 5.5% interest becomes $330,000 in 10 years. That’s not a mistake you can undo.

A good adviser will run projections showing what your debt will be at 80, 85, and 90. They’ll show you how much your home could be worth then-and how much your family might inherit. They’ll also explain alternatives like downsizing, reverse annuities, or government support.

Is There a True Maximum?

Technically, yes-the maximum is 60% of your home’s value. But in practice, it’s more nuanced. Your real maximum depends on:

• Your age
• Your health
• Your property’s value and location
• Current interest rates
• Whether you’re applying alone or with someone younger

There’s no one-size-fits-all number. Two 70-year-olds in the same city with identical homes might get different offers because one has a history of high blood pressure and the other doesn’t.

If you’re thinking about equity release, don’t guess. Get a free, no-obligation quote from a regulated adviser. They’ll give you exact numbers based on your situation. And remember: the goal isn’t to take the maximum possible. It’s to take what you need-without risking your future security.