The Canada Life smartER Lite plan offers a lower loan-to-value ratio compared to many of Canada Life's product range from age 55 upwards. It is therefore designed for those looking for a lower equity release lump sum, but in conjuction with a very competitive interest rate.
Even when offering one of the lowest loan amounts, the smartER Lite Plan still allows ad-hoc or structured voluntary repayments. Being part of the smartER suite, the only difference between this Lite plan and the Gold and Gold Plus versions is the amount each will release via their loan-to-value percentages.
In essence, the smartER Lite Plan will release a much lower loan amount - typically 3% less than the Gold version and 8% less than the Gold Plus. However, the resultant effect is that the smartER Lite plan attracts a much lower interest rate than the other deals.
Included as standard now in Canada Life's smartER range are two Early Repayment Charge waivers - Downsizing Protection and the Compassionate 3-Year Early Repayment Waiver. Both these automatic inclusions allow for the plan to be repaid early, with no penalty, under certain life changing events: -
- Downsizing protection allows homeowners wishing to downsize to another property after 5 years from inception of the plan, to be able to repay the whole mortgage with no penalty.
- The Compassionate waiver allows any survivor of a joint lifetime mortgage plan, the ability to repay the whole scheme with no penalty as long as repayment occurs within a 3 year window of their partner either dying, or moving into long term care.
A generous free valuation is offered along with a fixed equity release lifetime interest rate on the initial lump sum.
One of the strongest features of the smartER range is the early repayment charge (ERC). Canada Life only charge an ERC for the first 8 years following inception, or when taking additional borrowing on this equity release lite loan. The ERC starts at 5% for the first 5 years, then reduces to 3% for the next 3 years, and then NO penalty thereafter.
Canada Life are members of the Equity Release Council and therefore all their plans come with a no-negative equity guarantee. This means that upon eventual sale of the property, any beneficiaries cannot be left with a debt, over and above the value of the property, owing to the equity release lender.
Additional borrowing is available once all drawdown funds have been utilised in the future. The minimum additional borrowing amount is £4,000 with no completion fee charged.