Compare Canada Life Equity Release Quotes Against The Market

For homeowners in the UK aged 55 and over, equity release can be a viable option to unlock the wealth tied up in their property. Among the various providers in the market, Canada Life has established itself as a significant player. This article provides a detailed review of Canada Life's equity release offerings, helping you understand if it's the right choice for your financial future.

If you would like professional advice to help you decide whether Canada Life is the right equity release provider for you, get in touch below to speak to an expert:

Who is Canada Life?

Canada Life is a well-established financial services company with a history spanning over a century in the UK. As a part of Great-West Lifeco, it has a strong financial standing and a reputation for providing a range of retirement and investment products. In the equity release sector, Canada Life is known for its flexible lifetime mortgages and has won several awards for its products and services.

What is Canada Life Equity Release?

Canada Life offers lifetime mortgages, the most popular form of equity release. This allows homeowners to borrow against the value of their home while retaining full ownership. The loan, plus accrued interest, is typically repaid from the sale of the property when the homeowner passes away or moves into long-term care.

Canada Life's product range includes various 'Lifestyle' and 'Capital Select' options, which offer flexibility in how the funds are received. Homeowners can choose to take a one-off lump sum, a lump sum with a drawdown facility to access further funds as needed, or even make voluntary repayments of up to 10% each year without incurring early repayment charges.

Key Features of Canada Life Equity Release

Canada Life's equity release products come with several notable features:

• No Negative Equity Guarantee: This is a standard feature of all Equity Release Council approved plans. It ensures that you will never owe more than the value of your home.

• Inheritance Protection: Homeowners have the option to ring-fence a portion of their property's value as a guaranteed inheritance for their beneficiaries.

• Flexible Options: A choice of lump sum or drawdown plans allows for greater control over your finances. With a drawdown, interest is only charged on the funds that have been released.

• Downsizing Protection: Some plans offer the flexibility to move home and repay the loan without an early repayment charge, subject to terms and conditions.

• Fixed Interest Rates: Canada Life offers fixed interest rates for the life of the loan, providing certainty about the total cost of borrowing.

Canada Life Equity Release Interest Rates

The interest rates offered by Canada Life are competitive and are fixed for the duration of the loan. The specific rate you receive will depend on several factors, including your age, property value, and the amount you wish to borrow. It's important to get a personalised quote for the most accurate and up-to-date rates.

Eligibility Criteria

To be eligible for a Canada Life equity release plan, you generally need to meet the following criteria:

• You must be a UK homeowner aged 55 or over.

• Your property must be in England, Wales, or Scotland.

• The property must be your main residence and meet certain valuation and construction criteria.

• The minimum property value is typically £70,000, and the minimum loan amount is £10,000.

Canada Life Equity Release Reviews

Online reviews for Canada Life's equity release products are generally positive, with many customers highlighting the flexibility of the plans and the quality of customer service. However, some negative reviews mention issues with the application process and communication. As with any financial product, it's advisable to do your own research and read a variety of reviews before making a decision.

Pros and Cons of Canada Life Equity Release

Pros:

• Financial Flexibility: Provides access to tax-free cash to supplement retirement income, fund home improvements, or help family members.

• Retain Ownership: You continue to live in and own your home.

• Product Choice: A wide range of products with flexible features to suit individual needs.

• Reputable Provider: Canada Life is a well-established and award-winning provider.

Cons:

• Accumulating Interest: The interest on the loan compounds over time, which can significantly increase the total amount owed.

• Reduced Inheritance: The amount of inheritance you can leave to your beneficiaries will be reduced.

• Impact on Benefits: Taking out an equity release plan could affect your eligibility for means-tested state benefits.

• Early Repayment Charges: While there are options for voluntary repayments, repaying the entire loan early can result in substantial charges.

How to Apply for Canada Life Equity Release

To apply for equity release with Canada Life, you must seek independent financial advice from a qualified equity release adviser. The adviser will assess your circumstances, discuss the alternatives, and recommend the most suitable course of action. They will guide you through the application process, which will include a valuation of your property and legal advice from a solicitor.

At Money Helpdesk, we have expert equity release advisers on hand to tend to your every need. Get started here to book a free, no-obligation chat with a later-life lending specialist who knows Canada Life’s products and can help you decide if they’re your ideal provider.