Canada Life Capital Select Lite Flexi

Are You Considering the Capital Select Lite Flexi Scheme? What are the Eligibility Requirements, Features, Interest Rates & Scheme Options? Discover If This Equity Release Plan Is For You.

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Capital Select Lite Flexi Key Details

Type Rate APR
Canada Life Fixed 3.73% 3.87%

Scheme Incentives

  • Free Valuation
  • Free Application

Scheme Offers

  • Inheritance Protection
  • 8-Yr Fixed Early Repayment Charge
  • Downsizing Protection Feature
  • 3-Yr No Early Repayment Charge**
Canada Life Capital Select Lite Flexi

Canada Life Capital Select Lite Flexi Review

I think you’ll agree with me when I say:

It’s REALLY hard to choose the best equity release scheme with all the choices available.

Or is it?

Is the Canada Life Capital Select Lite Flexi, equity release scheme the best?

Don’t let your equity release dream become a nightmare!

Luckily, we’re here to guide you on the in’s and out’s of equity release, as you deserve only the best.

However, not all plans are suited to each individual. You need to look for one that will serve your home, your lifestyle, and the reason why you’re considering equity release in the first place.

As leading experts in the field, we’ve delved into hours of research, unpacked all the equity release plans on the market (we’ve reviewed over 250 schemes!), and discovered the best in the business.

Could the Canada Life Capital Select Lite Flexi be the right equity release plan for you?
We’re here to help you:
Canada Life is one of the leading equity release providers on the market and might just be the answer you’ve been looking for.
Can you truly go wrong with Canada Life?
Let’s find out!

What's Equity Release & How Does It Work?

We've summed up the most important information about the topic in this quick video.

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Equity release is available for individuals or couples over 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: What’s Equity Release & How Does It Work?

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Most popular reasons for releasing equity

Who Are Canada Life?

Canada Life Financial Corporation is a Canadian firm that provides group and individual life, health, and disability insurance.1 After rejecting a hostile acquisition proposal by rival Manulife, it was bought by The Great-West Life Assurance Company in 2003.
Learn more about the various Canada Life equity release schemes..

Scheme Background

New kids on the block make confident play within the equity release market.

With a ‘design-it-yourself’ approach to equity release, newly formed Canada Life offers a refreshing suite of products to qualifying homeowners and investors.

Enjoy lump sum, interest only lifetime mortgages, voluntary repayment schemes, Buy-to-Let (BTL) and Second Home equity release plans. Benefit more by adding on extra’s such as cashback, or drawdown facilities and couple this with an 8-year fixed early repayment charge.

Canada Life entered the equity release industry in 2018 following the acquisition of Retirement Advantage, a specialist in providing retirement products such as lifetime mortgages and retirement accounts with roots as far back as 1852. Prior to take-over Retirement Advantage was formed by a re-branding of MGM Advantage in 2015, following the purchase of former equity release lender – Stonehaven Equity Release.

This combination of experience, confidence and innovation makes Canada Life a serious lender in today’s equity release marketplace.

Eligibility & Requirements

The core Canada Life Capital Select equity release products are essentially roll-up lifetime mortgages with choices that allow you to create a plan tailored to your specific needs. This Capital Select line of products would fit any homeowner who needs either a simple roll-up or the option of making interest and/or capital repayments owing to a lack of affordability.

The Capital Select product suite is divided into loan-to-value ratio categories. They start with the ‘Lite’ products, which have the lowest loan-to-value ratios, and progress to the Gold, Gold Plus, and Platinum variants, which have ever larger maximum loan amounts.

Minimum Property Valuation

The lowest eligible property valuation for the Canada Life Capital Select Lite – drawdown plan is £70,000, with a maximum overall property value of up to £6 million across the country.

Property Location Requirements

The property given as security should be the homeowner’s primary residence and should be located in England, Scotland, or Wales.

Single vs Joint

This Canada Life Capital Select Lite (flexi) policy is offered on both a single and joint life basis, with a minimum age of 55 for the youngest homeowner and a maximum age of 90 at the application stage. The youngest applicant for a joint equity release must be 90 or younger.

Minimum Release

The lowest release amount at the application stage is merely £10,000, with a total maximum equity release amount of £1 million accessible countrywide and subject to underwriting.

Scheme Features

The Canada Life Capital Select Lite (flexi) plan is primarily a drawdown lifetime mortgage with the opportunity to build a cash reserve facility from the beginning. This drawdown capability will be available in the future if extra monies are necessary. The benefit is that only funds that are actually withdrawn are charged interest.

The Capital Select Lite plan additionally provides for ad hoc or structured voluntary repayments of up to 10% of the initial loan amount with no penalty. The sole difference between this Lite plan and the Gold and Platinum versions, which are all part of the Capital Select suite, is the amount each will release via respective loan-to-value ratios.
In effect, the Lite Plan will discharge a lesser loan amount, generally 5% less than the Gold Plan and 15% less than the Platinum Plan. The Capital Select Lite plan, on the other hand, has a significantly lower interest rate than both the Gold and Platinum agreements.

Now included as a standard in Canada Downsizing Protection and the Compassionate 3-Year Early Repayment Waiver are two Early Repayment Charge waivers available via Life’s Capital Select. Both of these automatic features allow the plan to be returned early, with no penalty, in the case of the following life events: –

Valuation Features

Canada life plan updates are still in the works. We will give an update soon.

Early Repayment Feature

Canada life plan updates are still in the works. We will give an update soon.

Equity Release Council Status

Canada life plan updates are still in the works. We will give an update soon.

Joint Application Features

Canada life plan updates are still in the works. We will give an update soon.

Scheme Options

This Canada Life Capital Select Lite (flexi) Lifetime Mortgage allows any homeowner to spend their tax-free cash as they see fit, both now and in the future, as well as choose a level of voluntary contribution that corresponds to their affordability levels rather than those of the lenders, as would any conventional mortgage.

Homeowners can select their level of payment to Canada Life’s interest charges, which can be up to 10% of the initial capital amount borrowed, with NO penalty. One key element of Canada Life’s Capital Select Lite Plan is that no proof of income or affordability is required, both before and beyond retirement age.

Payments are flexible, and you choose the degree of payback. Payments are possible at any time during the year, and using the maximum 10% repayment method might effectively lower the debt if necessary. The minimum payback is £50, and payments can be made via a debit card, a check, a bank transfer, or, most often, a standing order for an interest-only mortgage. Your welcome package includes a standing order mandate.

The Lite plan, as a core Capital Select product, can include a cash drawdown facility. As a result, once the initial tax-free lump payment is distributed, any leftover unused cash is held in an unlimited cash reserve facility. The minimum withdrawal amount is £2,000 per transaction, and there are no administration costs associated with these transactions.

Repayment Options

Homeowners can control – if they choose – the future balance of their Capital Select Lite Plan with payback levels of up to 10% of the initial amount borrowed. For example, in order to allow an interest-only basis and so keep a level mortgage amount, the plan would require that 100% of the interest be returned each month.

Even repaying less than the full amount of interest charged each month would assist to reduce the typical impacts of roll-up and keep the debt lower than it would have been otherwise.

Inheritance Protection

Another alternative for inclusion is the Inheritance Protection function, which allows the homeowner to secure a predetermined proportion of the property’s ultimate sale value. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.

Application Fees

Canada life plan updates are still in the works. We will give an update soon.

Cashback Options

All Capital Select plans have a cashback option. This provides you a payback of 3% of the initial borrowing amount with no maximum. This will result in a 0.3 percent MER added to the basic interest rate.

Footnotes

*Adding a drawdown facility to the Capital Select Lite Plan raises the interest rate by 0.2 percent. 
**The 3-year no-early-repayment-charge period applies to joint life policies if the loan is repaid within 3 years of a partner’s death or long-term care.

Canada Life's Other Equity Release Schemes

Are you looking for a specific equity release scheme?

These are some of the schemes offered by Canada Life.

Not what you're looking for?

Have a look at all the equity release schemes available on the market, with our easy to use table!

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

What people say

You are the best. You delivered what you mentioned you would that was much better than anybody else. I can not rate you highly enough!!
Brenden
Brenden
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I'd like to commend the excellent support we received from you guys in our recent equity release application, which proceeded faster than we could have hoped. Thank you so much.
Margaret
Margaret Doyle
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I have to say my experience with SovereignBoss was positive from start to finish. The level of customer service I received from John was simply outstanding, thank you!
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Janus Kern
SovereignBoss client

Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.

Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui

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Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Financial Planning Reporter

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
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Written by
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Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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