Canada Life was formed by MGM Advantage re-branding in 2015, following the purchase of former equity release lender – Stonehaven Equity Release/Retirement Advantage. Tracing its roots back to 1852, Canada Life 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 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 deal they receive. Couple this with their 8 year fixed early repayment charge makes Canada Life a serious player in the equity release arena.
The Canada Life ‘Lifestyle’ range provides a suite of simple lump sum equity release schemes offering three tiers of plans based on their loan-to-value ratio’s. This entry point Lifestyle Lite plan offers the lower capital amount of the three in terms of maximum lump sum availability, but consequentially has an attractively lower interest rate for the homeowner. Therefore, gauging the release amount against the interest rate is key.
Canada Life Lifestyle Options offers a core product range – the Lifestyle Lite with the lowest rate & loan-to-value; the Lifestyle Gold which is the mid-range plan & lastly the Lifestyle Platinum which has the higher interest rate, but will release a higher maximum loan amount.
The featured Lifestyle Lite Plan comes without the ability to make any repayments. This would suit an applicant with no affordability in retirement and the acceptance that the interest charged will roll-up.
The minimum property valuation acceptable to the Canada Life Lifestyle Lite Lifetime Mortgage is £70,000 with a maximum overall property value across the UK of upto £6 million. Canada Life will still consider properties above this level on an individual basis.
The property to be offered as security should be the homeowners main residence and located within England, Scotland and Wales.
Canada Life’s Lifestyle Lite 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 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 Lite plan is a straight forward lifetime mortgage scheme which provides an initial tax-free lump sum cash release for immediate use. This is ideal for those needing access to immediate cash and no potential requirement for additional funds in the future.
A generous free unlimited valuation is offered along with a fixed equity release lifetime interest rate on the initial lump sum.
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 Options range of plans are the early repayment charges (ERC’s). Canada Life only charge an ERC for the first 8 years following inception, drawdown or additional borrowing on this equity release loan. Early repayment charges start 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 in the future with a minimum additional borrowing amount of £4,000 and no completion fee charged by Canada Life.
This Canada Life Lifestyle Lite Mortgage enables any homeowner to spend their tax-free cash as they wish, with no need in having to make any repayments.
An option for inclusion is the Inheritance Protection feature, where 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, there is also the option of adding a cash drawdown facility, which 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 also 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 Lifestyle Lite, or Lifestyle Gold & Platinum Lifetime Mortgages, please contact the Equity Release Supermarket team on 0800 678 5955