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, 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 equity release deal they receive. Couple this with their 8 year fixed early repayment charge makes Canada Life a serious contender in the equity release market.
This Canada Life Interest Only Gold scheme would suit an applicant requiring monthly repayments, which enables control over the future balance of their equity release mortgage. This is achieved by selecting a level of payment which is affordable & maintains a balance in keeping with the demands of the homeowner.
The minimum property valuation acceptable to the Canada Life Interest Select Gold Flexible Lifetime Mortgage 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 Interest Select Gold 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 £750,000 available on a nationwide basis & subject to underwriting. For loans greater than £750,000, bespoke quotations are available via Equity Release Supermarket. Please call 0800 678 5955
for your personalised Key Facts Illustration.
The Canada Life Interest Select Gold plan is an interest-only 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.
Included as standard now in their Interest Select 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 property after 5 years from inception of the plan, to be able to repay the whole plan 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. 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 Interest Select 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 Interest-Only Gold 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.
Homeowners can choose their level of contribution towards the interest charged by Canada Life of between 50% of the interest calculation, upto 100% of the maximum amount of interest charged monthly. One significant change to Canada Life Interest Select Plan is that they DO NOT require any evidence of affordability, both pre & post retirement age. To facilitate an interest only basis and maintaining a level balance the plan would need 100% of the interest to be repaid.
The fixed monthly payment needs to be maintained for a period of 5 years minimum, or the whole of the life of the equity release loan. After 5 years, there is the option to stop making monthly payments & instead allow the interest to roll-up. This will have the effect of increasing the interest rate by 0.2%.
Being a core Interest Only product, by adding the cash drawdown facility to it has the effect of adding 0.2% to the standard equity release interest rate.
As part of the Canada Life Equity Release plan range a cashback of £1,000 can be selected by the homeowner, which has the effect of increasing the interest rate by 0.10%.
To obtain further information or to request a quotation on the Canada Life Interest Select Gold Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955