Did you know that nearly 1 in 5 (19%) individuals aged 55 and above have yet to make any retirement plans?¹ This eye-opening statistic, revealed by Canada Life equity release, underscores the importance of having reliable financial options as you approach retirement.

Canada Life offers bespoke solutions, allowing homeowners to unlock the value of their properties and enhance their retirement funds.

As more people look for flexible ways to boost their retirement savings, equity release is quickly becoming a viable choice—if you're considering this option, discover how Canada Life's equity release plans could be the perfect fit for your retirement goals.

Read on to learn how...

STATEMENT: BankingTimes is a separate third-party information provider and therefore not related to Canada Life, and the information replicated in this section represents the interpretations of BankingTimes only and not the opinions of Canada Life. This piece does not constitute advice, or an incitement to enter any services or products provided by Canada Life.

What is Our Review of Canada Life Equity Release?

Our review of Canada Life equity release finds it a solid and robust choice for homeowners in later life, as this flexible solution allows homeowners aged 55 and above to release cash from their property while maintaining ownership.

Canada Life offers several plan options, including the Lifestyle Lite option, which features lower interest rates, and the Lifestyle Gold option, designed for those seeking a higher cash release.

However, it’s important to note that while Canada Life is a reputable institution, equity release may not be suitable for everyone. The interest on the loan can accumulate quickly, potentially reducing the inheritance left to your beneficiaries.

In our review, we found that Canada Life's equity release product is transparent, straightforward, and backed by solid customer support. However, as with any financial product, it's essential to carefully consider all factors before proceeding.

At BankingTimes, we pride ourselves on being a trusted and authoritative source for equity release insights. Each of our articles is meticulously researched to provide the most accurate and up-to-date information available.

As experienced copywriters, we've examined Canada Life's Equity Release in detail and found it to be a robust product for those later in life. It's a flexible solution, allowing homeowners aged 55 and above to unlock cash from their property while still retaining ownership.

Various plan options are available, including a Lifestyle Lite option with lower interest rates and a Lifestyle Gold option for a greater cash release.

However, it’s important to note that while Canada Life is a reputable institution, the concept of equity release might not be suitable for everyone.

The interest can quickly add up and potentially erode the inheritance one might leave behind.

In our review, we found that Canada Life's Equity Release product is transparent, easy to understand, and comes with comprehensive customer support, but as always, one should carefully consider all aspects before proceeding.

BankingTimes stands as a trusted and authoritative source for insights on equity release. Every article is meticulously researched, ensuring readers receive the most up-to-date and comprehensive information available.

Let us find out what Canada Life equity release is all about.

What Is Canada Life?

Canada Life is a UK-based financial services provider with a strong Canadian heritage, specialising in numerous financial solutions that include wealth management, investment, and protection services.

Committed to promoting financial well-being, Canada Life aims to build a sustainable, resilient, and inclusive future for its customers through a variety of tailored products and services.

Here's a closer look at the provider:

Understanding Canada Life’s Equity Release Offerings

Canada Life’s equity release offerings primarily consist of lifetime mortgages, designed for homeowners aged 55 and over who want to unlock tax-free cash from their property while retaining ownership.

Their overall range includes lump sum lifetime mortgages and flexible drawdown plans, in addition to voluntary repayment options to help manage interest accumulation.

This money can be used for whatever you like, whether it is an overseas trip, home improvements, or helping your children onto the property ladder.

How Do Canada Life’s Equity Release Plans Work?

It offers a range of lifetime mortgages to release equity, which are only repayable upon your death or when you go into long-term care. 

Let us have a look at these.

Capital Select Options

The Capital Select Option has three plans - Super Lite, Lite, and Gold.

All are interest roll-up lifetime mortgage plans with varying loan amounts and interest rates.  

Key features include:

• You can borrow an amount ranging from £10,000 to £1 million.
• There are set charges for early repayment in the first eight years of the loan.
• Options for downsizing protection and waivers for early repayment are provided.
• From the outset, you have the freedom to make as many voluntary repayments as you wish.
• Additional lending options include a cash reserve facility and further advances.²

Lifestyle Select Options

There are also three plans available in the Lifestyle Select Option line, namely Lite, Super Lite, and Ultra Lite.

Like Capital Select, Lifestyle provides a roll-up interest lifetime mortgage with options for voluntary repayments.

Unlike Capital Select, these plans’ completion and legal costs are higher, and they do not offer downsizing safeguards or waivers for early repayment.

Key features include:

• Loan values vary between £10,000 and £1 million. 
• There are set charges for early repayment lasting eight years.³

What Are the Interest Rates and Fees?

When it comes to interest rates and fees, the provider offers specific terms across its mortgage products. 

Here is a breakdown.

Interest Rates

The interest rates are fixed throughout the loan's duration for all mortgage choices.

Setup Fees

The setup fees associated with its lifetime mortgages vary, encompassing different valuation, completion, and legal fees.

No valuation fee is required for the first advance, irrespective of property value.

There is no completion fee for the Capital Select Options, whereas Lifestyle Select Options have a £650 completion fee.

Legal fees stand at £474 for Capital Select Options and £799 for Lifestyle Select Options.⁴

Can I Repay My Canada Life Equity Release Plan Early?

Yes, you can repay your plan early, but there are specific provisions and potential costs to consider.

Repayment Options

You have the flexibility to repay the loan either in full or in part whenever you choose. 

The lifetime mortgage plans provide a range of repayment options, allowing you to make unlimited voluntary repayments starting from just £50 from the outset. 

Furthermore, you can repay up to 10% of the initial loan amount annually without facing any Early Repayment Charges.

Early Repayment Charges

While the plans are designed for long-term use, there are specific conditions where Early Repayment Charges (ERCs) may apply. 

These fees operate on a sliding scale, ranging from 0% to 5% of the total loan amount, based on how far you are into your term, and up to 8% for cashback options.⁵

Furthermore

Partial or full early repayments carry administration fees of between £100 and £200.⁶ 

With the complexities of Early Repayment Charges, consulting a financial advisor for guidance is recommended.

How Does the Application Process Work?

There is a four-step process for applying for lifetime mortgages through the provider, with the crucial stipulation that only qualified financial advisors can facilitate these applications.

Here is how the process works: 

• Preliminary discussion: Initiate the process by consulting both your family and an accredited financial advisor. This consultation will provide a Key Facts Illustration (KFI) to explain the primary details and potential costs.
• Paperwork: Your advisor will help you accurately complete and submit the required application form, which must include your solicitor's contact details.
• Valuation and legal advice: An independent specialist will undertake an evaluation of your property. In addition, you should consult your solicitor regarding the legal implications of releasing equity.
• Completion and disbursement: Once the valuation is finalised, an offer letter will be presented to you. Review the offer with the help of your solicitor. Once all the paperwork is in order and vetted, your solicitor will receive the funds, which they will then forward to you.

Benefits and Risks of Equity Release With Canada Life

Always take the time to examine the advantages and potential challenges associated with this form of borrowing. 

Benefits

The benefits encompass a blend of financial advantages and property-related safeguards.

Let us have a look:

• It can help fund your retirement lifestyle or provide financial aid to family members
• You retain ownership of your home
• You do not have to make repayments unless you choose to 
• The loan amount will never surpass the property's worth, providing a safety net against owing more than the value of your home.

Risks

The risks to potential borrowers should be weighed carefully.

Let us dive in:

• With fixed interest rates, the accruing interest can significantly increase the debt, potentially exhausting the property's entire value
• It can reduce the value of your estate
• Opting for early redemption or interest settlement might invoke hefty penalties
• It can affect your eligibility for means-tested benefits

Canada Life FCA Details

The firm is authorised by the Financial Conduct Authority (reference number 110394) to provide banking, consumer credit, insurance, investment, and pension services.⁷

Canada Life Contact Details

For any inquiries, you can phone or email using the below details.

• Phone: 0800 068 0212
• Customer email: hf-customers@canadalife.co.uk

How Did We Review Canada Life?

For a balanced evaluation of the provider’s lifetime mortgage services, we explored various critical elements such as product variety, interest rates, related charges, and repayment methods. 

Additionally, we considered feedback from customers and sought opinions from finance specialists to thoroughly understand the company's offerings.

Common Questions

Conclusion

Establishing clear financial objectives as one approaches retirement is not only wise but essential to ensure a stable and comfortable future. 

Equity release, while a potent financial tool, comes with its nuances and complexities. It is crucial to approach it with a well-informed perspective, weighing both its benefits and potential implications. 

By seeking expert guidance and leveraging the experience of trusted financial professionals, opting for Canada Life's equity release can become a strategic avenue to meet your retirement aspirations.