Canada Life Equity Release & Lifetime Mortgage Review in 2024

Are You Considering Canada Life’s Equity Release to Fund Your Retirement? Learn About the Fees, Interest Rates and Plans on Offer. Find Out Here if Canada Life’s Equity Release Is the Best for You…
  • Last Updated: 01 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui

Key Takeaways

  • Canada Life is a well-established insurance and financial services company, in operation since 1847, serving over 3.5 million customers in Canada, the UK, the Isle of Man, and Germany.
  • The company offers equity release products including lifetime mortgages and buy-to-let mortgages, with options like Capital Select, Lifestyle Select, and Second Home.
  • Canada Life’s equity release interest rates range between 5.20% to 6.30%* AER, varying based on the chosen plan, borrower's age, and loan-to-value ratio.
  • Fees charged by Canada Life include valuation, completion, legal, and porting fees, with valuation fees ranging from £135 to over £900, and a standard completion fee of £650.
  • Canada Life's customer service aims to resolve straightforward complaints within three working days and more complex issues within eight weeks.

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. 

In This Article, You Will Discover:

    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:

    NOTEEvery Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor 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?

    Canda Life is an insurance and financial services company providing financial security to it's 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, UK, 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 Is Releasing Equity From Property?

    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 Canada Life Equity Release?

    As seasoned experts in financial solutions, we understand the advantages of Canada Life's Equity Release.

    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 Equity Release is the flexibility it offers.

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

    Importantly, you retain the right to live in 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 Products Does Canada Life Offer?

    The equity release products offered by Canada Life are a lifetime mortgage and a buy-to-let mortgage. 

    You can use it's 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.

    It's product range includes Capital Select, Lifestyle Select, and Second Home options. 

    A closer look:

    Capital Select Options

    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 5.20% to 6.30% AER*.
    • Inheritance protection.
    • Option to port to another property.
    • No negative equity guarantee.

    Lifestyle Select Options

    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.

    What Are Canada Life’s Equity Release and Lifetime Mortgage Interest Rates?

    Canada Life’s equity release interest rates will fall within the current bracket of between 5.20% to 6.30%* 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.

    Canada Life's Fees

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

    Complete list of fees:

    Interest Rates

    Interest rates will vary depending on the product you opt for and your circumstances, age, and property value. 

    Valuation Fees 

    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. 

    Completion Fees

    A £650 fee covers the legal costs incurred by the provider and any funds transfer fees.

    Legal Fees 

    Canada Life covers the cost of standard legal fees; however, certain situations may incur additional fees.

    These 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). 

    Additional Borrowing

    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. 

    Porting Fees

    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. 

    Changes in Borrowers

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

    Administration Fees

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

    Full or Partial Repayment Fees

    Your loan can be repaid in full, or in part, at any time; however, some circumstances may incur early repayment charges. 

    Repossession Charges

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

    Does Canada Life Have an Equity Release Calculator?

    Yes, Canada Life does have an equity release calculator that can help you determine approximately how much of the value you may be able to 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 a buy-to-let and whether you would like a drawdown facility on your loan. 

    Canada Life Customer Reviews

    Find out what customers have to say about Canada Life:

    Canada Life Complaints

    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

    Canada Life Jobs

    Canada Life's vacancies are advertised on it's website

    Voted as one of Canada’s top 100 employers in 2022, it's positions are in demand. 

    You could join it's team in one of the following roles:

    • Accounting
    • Actuarial
    • Administrative
    • Customer Service
    • Digital Hub
    • Finance and Investment
    • Human Resources
    • Technology
    • Insurance
    • Legal
    • Brand, Marketing and Measurement
    • Project Management
    • Sales and Business Development

    Canada Life Contact Number

    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 Did We Review Information on Canada Life?

    This is an unaffiliated, independent review of Canada Life.

    Our dedicated research team has combed through hundreds of online reviews and information pages and consolidated all of their findings into this article for your benefit.

    FCA Details

    Regulators

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

    Registration Numbers

    Companies House Number: 00973271

    Companies House Link

    Companies House Link: Companies House Link

    Canada Life Contact Number and Address

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

    Common Questions

    What Is Canada Life Equity Release?

    How Does Canada Life Equity Release Work?

    What Are the Pros and Cons of Canada Life Equity Release?

    How Can I Apply for Canada Life Equity Release?

    Is Canada Life Equity Release a Good Option for Me?

    Is Canada Life a Member of the Equity Release Council?

    Who Owns Canada Life?

    Does Canada Life Offer Equity Release?

    Is Canada Life's Equity Release Safe?

    In Conclusion

    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. 

    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.

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