Canada Life was formed by MGM Advantage re-branding in 2015, following the purchase of the former equity release lender, Stonehaven Equity Release/Retirement Advantage. With roots dating back to 1852, Canada Life have since become a specialist in providing innovative retirement products such as their lifetime mortgage range.
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 cashbacks or a 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 contender in the equity release arena.
The Canada Life ‘Lifestyle’ range provides a suite of simple lump sum equity release schemes offering five tiers of plans based on their loan-to-value and cashback ratio’s. The Retirement Lifestyle Platinum Cashback plan offers the maximum equity release capital amount of the five in terms of maximum lump sum availability, by using the 3% cashback feature to enhance the maximum loan-to-value figures. Therefore, gauging the size of the release amount against the interest rate is key to deciding the suitability of the five Lifestyle schemes.
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, Lifestyle Gold Plus, the Lifestyle Platinum and finally the Lifestyle Platinum Cashback which has the higher interest rate, but will release the highest maximum equity release lump sum.
The featured Lifestyle Platinum Cashback Plan comes without the ability to make any repayments, nor the option to have a drawdown facility. This would therefore 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 Platinum Cashback plan is available on both a single and joint life basis with a minimum age of youngest homeowner being 60, 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 Platinum Cashback plan is a simple single lump sum 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 without any further amounts 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, should the cash reserve be utilised in full, with a minimum additional borrowing amount of £4,000 and no completion fee charged by Canada Life.
This Canada Life Lifestyle Platinum Cashback 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.
The Canada Life Equity Release plan have a range of cashbacks which usually have a fixed amount of £1,000. However, the Platinum Cashback Plan is designed to enhance the Lifestyle Platinum plan further in order to attain the highest release amount in the marketplace. The 3% cashback amount is unlimited in nature & therefore should enhance the maximum loan amount to offer the largest lump sum equity release scheme.
To obtain further information or to request a quotation on the Canada Life Lifestyle Platinum Cashback Lifetime Mortgage, please contact the Equity Release Supermarket team on 0800 678 5955