Could you be next to take out a Canada Life equity release plan?

The equity release market is booming! 

Older homeowners have released an average of £111,500¹ in property wealth in the first quarter of 2023 alone. 

Canada Life is a trusted provider of financial services. Our experts combed through data from many companies to bring you the most comprehensive perspective. 

Does Canada Life have a plan for you? 

Discover more:

NOTE: EveryInvestor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of EveryInvestor only and may not reflect the views or opinions of Canada Life. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Canada Life.

Who is Canada Life and What Can They Offer You?

Canada Life is a prominent financial services provider offering a diverse range of products including life insurance, pensions, and investments, tailored to help individuals and businesses secure and enhance their financial futures.

Who Is Canada Life and What Do They Offer?

Canda Life is an insurance and financial services company that has offered financial security to its customers for over 170 years, as well as winning several equity release awards in 2023.

Founded in 1847², it has stood the test of time. Servicing over 3.5mln people in Canada, the UK, the Isle of Man, and Germany.

With a range of retirement, wealth management, and insurance products to choose from, it caters to businesses, families, and individuals alike.

What Home Finance Options Does Canada Life Offer Beyond Equity Release?

Beyond equity release, Canada Life offers a variety of home finance options including traditional mortgages and retirement interest-only mortgages, catering to different financial needs and stages of life and allowing you to manage your loan in a way that’s best for you.

Whether you’re looking to reduce inheritance tax or fund your retirement, Canada Life has options that can be tailored to your unique circumstances.

How Can Releasing Equity With Canada Life Benefit You?

Releasing equity with Canada Life can benefit you by providing financial freedom in retirement by unlocking the value tied up in your home.

How Does Releasing Equity From Property Work With Canada Life?

Releasing equity from property with Canada Life typically involves choosing from their range of lifetime mortgages, where homeowners borrow against the value of their home while retaining ownership.

Equity release allows individuals over 55 to tap into their home’s equity for cash without selling, effectively enabling them to release money from property.

It’s a financial tool to liquidate a part of your property’s value.

The repayment of equity release loans is unique.

The amount, with accumulated interest, is paid off when the home is sold, typically following the homeowner’s death or move to care, providing a payment-free period during the homeowner’s life.

What Are the Benefits of Using Canada Life for Equity Release?

The benefits of using Canada Life for equity release include competitive interest rates, flexible withdrawal options, and a ‘no negative equity’ guarantee, ensuring customers never owe more than the value of their home.

A significant benefit is that you gain access to tax-free cash from your property’s equity without needing to sell or move.

This product is perfect for seniors who want to boost their income post-retirement.

Furthermore, the ‘no negative equity guarantee’ ensures that your debt will never exceed your home’s value, thus protecting your residual estate.

Another compelling feature of Canada Life’s equity release is the flexibility it offers.

You can choose either a lump sum or drawdown option, allowing you to tailor the product to your specific needs and financial circumstances.

Importantly, you retain the right to live on your property until you pass away or move into long-term care.

With Canada Life, you get peace of mind and financial freedom, a unique combination that sets this product apart from others.

What Equity Release Solutions Does Canada Life Provide?

Canada Life provides various equity release solutions, including lifetime mortgages and home reversion plans, tailored to homeowners’ needs.

Which Equity Release Products Are Offered by Canada Life?

Canada Life offers a range of equity release products, including lifetime mortgages and buy-to-let mortgages. 

You can use its mortgage products to access cash from your primary residence, second home, or buy-to-let. 

The amount you can borrow comes with a certain amount of flexibility and the option to make repayments every year without any early repayment fees.

Its product range includes Capital Select, Lifestyle Select, and Second Home options. 

A closer look:

What Are Canada Life’s Capital Select Options for Equity Release?

The Capital Select Option from Canada Life is an interest-roll-up lifetime mortgage that allows yearly voluntary repayments.

The youngest borrower must be 55 or older, except on the Platinum Plus option, which requires a minimum age of 60. 

You can pay up to 10% of the initial loan amount each year voluntarily. These payments can be as little as £50 and can be made anytime and as often as you wish. 

Capital Select Option in a nutshell:

• Repay up to 10% of your loan yearly.
• Access money at a later stage via a cash reserve. 
• 3% cashback option.
• Downsizing protection.
• Early Repayment waiver. 

The Capital Select product features include:

• Retain full ownership of your home.
• No threat of repossession.
• Fixed interest rates. It’s fixed interest rate starts from 5.65% to 5.85% AER*.
• Inheritance protection.
• Option to port to another property.
• No negative equity guarantee.

What Are Canada Life’s Lifestyle Select Options for Equity Release?

Canada Life’s Lifestyle Select options enable you to release tax-free cash from the value of your home up to a maximum of £1mln. 

You will have the flexibility to make yearly repayments of up to 10% of the original loan, and you are entitled to spend the money you release however you wish. 

To qualify, the youngest borrowers must be 55. 

Unlike the Classic Select options, this scheme does not offer downsizing protection, cashback, or early repayment waivers. 

Lifestyle Select option in a nutshell:

• Repay up to 10% of your capital loan each year. 
• Possibility to access money later by adding a cash reserve. 
• Inheritance protection guarantee.
• Fixed early repayment charges. 

The Lifestyle Select product features include:

• Retain full ownership of your home.
• No threat of repossession.
• Fixed interest rates.
• Inheritance protection.
• Option to port to another property.
• No negative equity guarantee.

How Do Canada Life’s Protection Products Complement Their Equity Release Schemes?

Canada Life’s protection products complement their equity release schemes by being designed to safeguard you and your family’s interests throughout the equity release process.

From insurance that covers your repayments in unforeseen circumstances to plans that protect your estate’s value for your heirs, these products ensure your equity release decision is secure and beneficial in the long term.

This comprehensive approach to protection provides peace of mind, knowing your financial future is well-guarded.

How Competitive Are Canada Life’s Equity Release Rates?

Canada Life’s equity release rates are known to be competitive within the market, offering attractive terms that compare favourably with those of other providers.

Their rates are designed to provide affordability while ensuring a fair balance between the benefits to the homeowner and the long-term sustainability of the loan.

How Do Canada Life’s Mortgage Rates Compare to Other Equity Release Providers?

Canada Life’s mortgage rates for equity release are generally competitive, often positioned attractively in comparison to other providers.

Their mortgage rates are designed to offer you value while ensuring your financial security over the long term.

Comparing these rates to those of other providers, you’ll find Canada Life aims to balance affordability with the benefits of their comprehensive equity release plans.

What Are the Interest Rates for Canada Life’s Equity Release and Lifetime Mortgages?

Canada Life’s equity release interest rates will fall within the current bracket of between 5.65% to 5.85%* AER.

The final interest rates will be determined by your chosen plan, age, and LTV.

*While we regularly review our rates, these may have changed since our last update.

What Costs Are Involved With Canada Life’s Equity Release?

The costs involved with Canada Life’s equity release include interest rates, setup fees, and potential early repayment charges.

What Fees Are Associated With Canada Life’s Equity Release?

Canada Life charges valuation, completion, legal and porting fees, to name a few. 

Complete list of fees:

How Are Canada Life’s Mortgage and Equity Release Interest Rates Determined?

Canada Life’s mortgage and equity release interest rates are determined based on a combination of market conditions, the Bank of England’s base rate, and individual factors such as the borrower’s age, property value, and the amount of equity being released.

These rates are designed to be competitive while ensuring the financial viability and sustainability of the equity release products offered.

What Are the Valuation Fees for Canada Life Equity Release?

The valuation fees for Canada Life equity release depend on the value of the property being assessed and can vary, but fees generally cover the cost of a professional appraiser to evaluate the property’s market value, which is crucial for determining how much equity can be released.

Valuation report costs are payable on further advanced and porting applications and any circumstances that require a property valuation. 

The fees start from £135 and can exceed £900, depending on the estimated value of your property. 

What Completion Fees Does Canada Life Charge for Equity Release?

The completion fees Canada Life charges for equity release include a £650 fee that covers the legal costs incurred by the provider and any funds transfer fees.

What Are the Legal Fees for Canada Life’s Equity Release?

The legal fees for Canada Life’s equity release cover the cost of legal advice and services required to complete the equity release transaction.

These fees are paid to solicitors who ensure that all legal aspects of the equity release are properly handled, including checking the property’s title and ensuring compliance with all regulatory requirements.

Canada Life covers the cost of standard legal fees; however, certain situations may incur additional fees, which typically involve unregistered or leasehold properties or properties to be purchased.

The fees start at around £30 (excl. VAT) and can go up to £85 (excl. VAT). 

You will also be responsible for paying your legal fees. 

Equity Release Council³ member fees normally start from about £799(excl. VAT). 

How Can I Use Canada Life’s Equity Release Calculator?

You can use Canada Life’s equity release calculator by inputting details such as your age, property value, and any outstanding mortgage on their website to estimate how much equity you could release from your home.

The calculator generates the maximum amount that you could potentially borrow based on your youngest borrower’s age and the value of your property.

Additionally, the calculator will let you specify whether your property is a primary residence, second home, or buy-to-let and whether you would like a drawdown facility on your loan. 

What Do People Say About Canada Life’s Equity Release Service?

People generally say positive things about Canada Life’s equity release service, noting its reliability and the transparency of the process and commending the professionalism of the staff and the clarity of information provided, helping clients feel secure in their decisions.

What Do Customers Say About Canada Life Equity Release?

Find out what customers have to say about Canada Life:

• Canada Life reviews on UK Trustpilot

How Does Canada Life Handle Equity Release Complaints?

Canada Life addresses equity release complaints through a structured process that includes acknowledging, investigating, and resolving issues, ensuring customer concerns are managed promptly and effectively.

It is possible to make a complaint about Canada Life in writing, by letter, or e-mail, verbally on the telephone, or in person.

If your complaint is straightforward, customer services will endeavour to resolve your concern within three working days. 

If the complaint is more complex or severe, the customer services team will aim to conclude the investigation within eight weeks.

If a complaint can not be resolved before the regulatory deadline, it can be referred to:

• The Financial Ombudsman⁴
• The Pensions Ombudsman⁵

How Can You Engage With Canada Life for Your Equity Release Needs?

Engage with Canada Life through their website or customer service for personalised advice on equity release options.

How Do Canada Life Intermediaries and Advisers Support Your Equity Release Journey?

Canada Life’s intermediaries and advisers support your equity release journey by offering personalised guidance through every step of your equity release journey.

They help you understand the nuances of different plans, ensuring you make an informed decision that aligns with your financial goals.

With their expertise, you can navigate the complexities of equity release with confidence, from initial inquiry to the final decision.

How Does Additional Borrowing Work with Canada Life Equity Release?

Additional borrowing with Canada Life equity release works by applying for further funds beyond the initial amount released, subject to eligibility and approval.

If you are eligible and decide to take a further advance following the completion of your initial loan, you could be liable for additional valuation fees and further advance completion fees from £420 upwards. 

What Are Canada Life’s Fees for Porting Equity Release or Mortgages?

Canada Life’s fees for porting equity release or mortgages can vary depending on the specific product and circumstances surrounding the porting request

Should you decide to move home and transfer your existing mortgage to your new home, you will be required to complete a new application. 

This means paying all the corresponding fees, including valuation, completion, and legal fees. 

How Can You Manage Changes in Borrowers With Canada Life Equity Release?

Managing changes in borrowers with Canada Life’s equity release involves notifying them of any significant changes, such as the addition or removal of a borrower on the agreement.

Should your circumstances change requiring you to add or remove borrowers from the contract, you could be liable to pay a £550 fee. 

What Administration Fees Does Canada Life Charge for Equity Release?

Canada Life charges administration fees for equity release to cover the costs associated with managing and processing the plan.

Any changes to your contract could attract a £100 additional fee. 

What Are the Repayment Fees for Canada Life Equity Release?

The repayment fees for Canada Life’s equity release typically include early repayment charges (ERCs) if the equity release plan is paid off before the agreed term or under conditions not originally stipulated.

Your loan can be repaid in full, or in part, at any time, but keep the ERCs in mind. 

What Repossession Charges Apply to Canada Life Equity Release?

Repossession charges typically do not apply to Canada Life equity release, as these plans do not require monthly repayments and the loan is settled through the property’s sale when the borrower passes away or moves into long-term care.

However; upon Canada Life deciding to seize your property for whatever reason, you are responsible for paying the legal fees associated with your case. These charges are determined on a case-by-case basis. 

How Can I Contact Canada Life for Equity Release Queries?

Canada Life’s customer services can be contacted on 0800 068 0212 or +44 1707 651 122.

It is open Monday to Friday from 9am to 5pm.

How to Contact Canada Life for Equity Release Adviser?

• +44 345 606 0708
• Customer.Services@canadalife.co.uk
• Canada Life Limited, Canada Life Place, Potters Bar, Hertfordshire, EN6 5BA.

What Regulatory Details Should You Know About Canada Life’s Equity Release?

You should know that Canada Life’s equity release schemes are regulated by the Financial Conduct Authority and are members of the Equity Release Council, ensuring adherence to high standards of consumer protection and transparency.

How Was Canada Life’s Equity Release Information Reviewed?

Canada Life’s equity release information was reviewed by our dedicated research team, who has combed through hundreds of online reviews and information pages and consolidated all of their findings into this article for your benefit.

This is an unaffiliated, independent review of Canada Life.

Is Canada Life’s Equity Release Regulated by the FCA?

Canada Life’s equity release is authorised and regulated by the FCA, ensuring compliance with financial services regulations.

Who Regulates Canada Life’s Equity Release Products?

• Financial Conduct Authority (FCA)⁶
• Prudential Regulation Authority (PRA)⁷

What Are Canada Life’s Registration Numbers for Equity Release?

Companies House Number: 00973271

How to Find Canada Life on Companies House for Equity Release Verification?

Companies House Link: Companies House Link

What Are Common Questions About Canada Life’s Equity Release?

Common questions include eligibility, costs, and how to apply, with Canada Life providing detailed answers to assist homeowners.

In Conclusion: Is Canada Life Equity Release Right for You?

Canada Life is a well-established company that can offer you additional protection from the Equity Release Council. 

Although the above information is comprehensive and the result of exhaustive research, we still recommend meeting with one of the many available unaffiliated equity release specialists.

The specialist will examine equity release options from across the market to determine which option is the best for you. 

Age Partnership : Benefit from specialized financial services for seniors in Ireland, provided by Age Partnership to enhance retirement planning.

The features mentioned and the amounts raised, are subject to the lender’s criteria, terms, and conditions. These may take into account the age, health, and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.