Equity Release › Does releasing equity increase my repayments?

Does releasing equity increase my repayments?

Yes. Releasing equity increases your loan balance, so unless you extend the term or change the structure, your repayments generally rise. The increase depends on how much you draw, the rate, and the loan term.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

This is the trade off people sometimes overlook. The cash is useful, but it is borrowed, so it has to be repaid with interest. Whether the higher repayment is worth it depends on what the funds achieve. If the money grows your wealth or saves more than it costs, it can make sense.

The key points

A larger loan usually means higher repayments.
The rise depends on amount, rate, and term.
Extending the term can soften the repayment.
Weigh the cost against what the funds achieve.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.