As we move into 2026, many South African homeowners and property investors are finding themselves “asset rich but cash poor.” You might own a property that has significantly increased in value over the last decade, but that wealth is locked within the brick and mortar of the building.
If you have a major financial goal—whether it’s starting a new business, funding a child’s university education abroad, or carrying out a complete home renovation—you don’t necessarily need to save for years or sell your home to find the capital. Equity release allows you to tap into the value you’ve already built up in your property.
At New Heights Finance, we specialise in helping you navigate the complexities of a Home Equity Loan, ensuring you can access the cash you need while maintaining ownership of your most valuable asset.
What is Equity Release?
Equity release is the strategic process of unlocking the value tied up in a property that no longer has an outstanding mortgage. Because there is no existing bank bond, the property represents 100% equity.
By taking out a loan against this unencumbered asset, you are essentially “re-gearing” the property. Instead of a high-interest personal or business loan, you are using your title deed as security to access capital at the most competitive rates available in the South African market.
Why 2026 is the Year to Leverage Your Equity
With the economic landscape of 2026 presenting both challenges and unique opportunities, bond-free homeowners are using equity release for high-impact financial moves:
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Business Expansion & Acquisitions: Entrepreneurs are using the equity in their private homes to fund business growth or buy out competitors. Property-backed finance is almost always cheaper than traditional business credit.
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Offshore or Local Property Investment: Using the cash from a primary residence to pay a significant deposit (or the full purchase price) on a new investment property allows you to grow your portfolio without liquidating your current holdings.
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Major Capital Expenditure: Whether it’s a complete solar and off-grid power overhaul or a substantial home renovation, using equity allows you to fund large projects at a fraction of the cost of unsecured credit.
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Estate Planning & Wealth Transfer: Some owners use equity release to provide their children with a “living inheritance,” helping them enter the property market or start businesses while the parents retain residency in the home.
The Advantages of the “Bond-Free” Advantage
Because your property is already paid up, the application process for equity release is significantly more streamlined and offers superior terms:
Accessing the cash in your bond-free property is a transparent, four-step process:
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Valuation: We facilitate a professional valuation of your property to determine its current 2025 market value.
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Affordability Assessment: While the property is the security, we ensure the monthly repayments fit comfortably within your current income profile.
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Lender Matching: We package your application and present it to our network of specialised lenders to secure the lowest possible interest rate.
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Registration & Payout: A new bond is registered at the Deeds Office, and the funds are paid directly to your designated account.
Is Equity Release Right for You?
This solution is designed for the disciplined homeowner who views their property as a strategic financial tool. It is most effective when the released funds are used for “wealth-building” purposes—investments or improvements that will ultimately provide a return higher than the cost of the interest.
If you are sitting on a bond-free home and need a significant capital injection for your next big move, your title deed is the key.
Contact New Heights Finance today to see how much cash you can unlock from your bond-free property.
Frequently Asked Questions: Equity Release in South Africa
1. Do I still own my home after releasing equity?
Yes, absolutely. You remain the registered owner of the property on the title deed. Equity release is simply a loan secured by the property. You continue to live in and maintain the home just as you did before; your only new obligation is the monthly repayment to the lender.
2. Can I release equity if I still have a small bond remaining?
For the specific Equity Release product discussed here, the property generally needs to be fully paid-up (bond-free). If you have a small remaining balance, the new loan would first be used to settle that balance in full, with the remaining significant portion paid out to you as cash.
3. How much cash can I actually get from my property?
While every lender has different criteria, you can typically access between 50% and 80% of the current market valueof your property. For example, on a bond-free home worth R2,000,000, you could potentially access up to R1,600,000 in cash, depending on your personal affordability.
4. How long does the process take?
Because equity release involves registering a new bond at the Deeds Office, it is not as fast as an unsecured personal loan. You should generally allow for 3 to 6 weeks from the time of application to the payout of funds. This includes the valuation, approval, and legal registration stages.
5. Are there restrictions on how I spend the money?
No. Once the funds are paid into your account, they are yours to use as you see fit. Whether you are investing in a new business, paying for overseas education, or installing a high-end solar system, the choice is entirely yours. However, we always recommend using the capital for assets that appreciate or provide a return.
6. What happens if I want to sell the house later?
You can sell your property at any time. When the house is sold, the outstanding balance of the equity release loan is settled from the proceeds of the sale, and the remaining profit goes to you, just like a standard mortgage.
