Canada Life was formed by MGM Advantage re-branding in 2015, following the purchase of former equity release lender – Stonehaven Equity Release/Retirement Advantage. Canada Life can trace its roots back to 1852 have since become a specialist in providing retirement products such as lifetime mortgages and their retirement account.
Canada Life’s range of Lifetime Mortgage UK plans offer a ‘design-it-yourself’ approach to equity release. Offering a suite of base products such as lump sum roll-up, interest only lifetime mortgages and voluntary repayment schemes, any qualifying homeowner can add-on extra’s they require such as cashback or drawdown facility which all influence the final deal they receive. Couple this with their 8 year fixed early repayment charge makes Canada Life a serious player in the equity release arena.
This Canada Life Drawdown scheme is actually the core product – the Lifestyle Gold Flexi Plan, with the addition of a drawdown facility at the homeowners request. This would suit an applicant not requiring any monthly repayments, acceptance that the interest charged will roll-up, but maybe wanting additional capital at some point in the future.
The minimum property valuation acceptable to the Canada Life Lifestyle Gold Flexi Lifetime Mortgage Plan is £70,000 with a maximum overall property value across the UK of upto £10 million.
The property to be offered as security should be the homeowners main residence and located within England, Scotland and Wales.
Canada Life’s Lifestyle Flexi plan is available on both a single and joint life basis with a minimum age of youngest homeowner being 55, with a maximum age at application stage being 90. For joint equity release borrowers, the youngest applicant must be 90 or younger.
The minimum release at application stage is just £10,000 with an overall maximum equity release amount of £1 million available on a nationwide basis & subject to underwriting. For loans greater than £1 million, bespoke quotations maybe available via Equity Release Supermarket. Please call 0800 678 5955
for your personalised Key Facts Illustration.
The Canada Life Lifestyle Gold Flexi plan is a drawdown lifetime mortgage scheme which provides an initial tax-free lump sum cash release for immediate use, with any remaining unused cash being retained in a cash reserve facility. This is ideal for those needing access to immediate cash but with a further drawdown amount in the future. The minimum withdrawal amount from the cash reserve facility is just £2,000 with no further administration charges for any additional drawdown amounts taken.
A generous free valuation is offered along with a fixed equity release lifetime interest rate on the initial lump sum. Any further withdrawals would be at the interest rate applicable at the time of withdrawal.
Canada Life are members of the Equity Release Council all their plans come with a no-negative equity guarantee. Therefore, upon eventual sale of the property, any beneficiaries cannot be left with a debt owing to the equity release company.
One of the strongest features of the Lifestyle Gold Flexi is the early repayment charge (ERC). Canada Life only charge an ERC for the first 8 years following inception, drawdown or additional borrowing on this equity release 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.
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 by Canada Life.
This Canada Life Flexi Drawdown Mortgage enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments.
A further option for inclusion is the Inheritance Protection feature so the homeowner can secure a fixed percentage of the final sale value of the property. This is important for those who wish to guarantee a percentage of the house value from their inheritance.
Being a core lump sum product, by adding the cash drawdown facility to it has the effect of adding 0.2% to the standard equity release interest rate.
To obtain further information or to request a quotation on the Canada Life Lifestyle Gold Flexi Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955