Canada Life Capital Select Lite
Before You Start Reading...
How Much Can You Release? 👇
Canada Life Capital Select Lite Scheme Review
Capital Select Lite Key Details
- Free Valuation
- Free Application
- Inheritance Protection
- 8-Yr Fixed Early Repayment Charge
- Downsizing Protection Feature
- 3-Yr No Early Repayment Charge**
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, equity release scheme the best?
Don’t let your equity release dream become a nightmare!
Luckily, we’re here to guide you on the ins and outs of equity release, as you deserve only the best.
However, it’s important to remember that 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.
Let’s find out!
Who Are Canada Life?
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 Lifetime mortgage is effectively a roll-up lifetime mortgage, with no evidence of income or affordability necessary to make payments. This could be ideal for any homeowner searching for the largest release possible as well as flexible repayments, allowing them to manage the balance amount of their equity release mortgage.
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, Platinum, and Platinum Plus variants, which have ever larger maximum loan amounts.
Minimum Property Valuation
The lowest eligible property valuation for the Canada Life Capital Select Lite plan is £70,000, with a maximum aggregate 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 lump sum plan 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 years old or younger.
The minimum release amount at the application stage is £10,000, with a total maximum equity release amount of £1 million accessible countrywide and subject to underwriting.
The Canada Life Capital Select Lite plan has a lower loan-to-value ratio than many of Canada Life’s products for those over the age of 55. As a result, it is intended for individuals seeking a smaller equity release lump in conjunction with a highly competitive interest rate.
Even though the Capital Select Lite Plan has one of the lowest loan amounts, it nevertheless allows for ad hoc or scheduled voluntary repayments. The sole difference between this Lite plan and the Gold and Gold Plus variants, which are all part of the Capital Select suite, is the amount each will release via respective loan-to-value ratios.
In effect, the Capital Select Lite Plan will release a considerably lesser loan amount – generally 3% less than the Gold version and 8% less than the Gold Plus version. However, as a result, the Capital Select Lite plan has a significantly lower interest rate than the other options.
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 certain life events.
This Canada Life Capital Select Lite Lifetime Mortgage allows every homeowner to spend their tax-free cash as they see fit. They can also pick a level of voluntary contribution that corresponds to their affordability levels rather than that of the lenders.
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.
As a core Capital Select product, you may also add a cash drawdown facility. This means that, once the initial tax-free lump payment is distributed, any leftover unused cash is held in an unlimited cash reserve facility. The Lite version is ideal for those seeking a small cash facility while also maintaining control of the balance through monthly repayments and having access to future funds. The minimum drawdown permitted is £2,000 per withdrawal, and there are no administrative costs for these withdrawals.
Homeowners can manage the future balance of their Capital Select Lite Plan by repaying 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.
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.
All Capital Select plans have a cashback option. This provides you with 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.
*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.
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