Canada Life Capital Select Lite
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Canada Life Capital Select Lite Review
Capital Select Lite Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 3.73% | 3.87% |
Scheme Incentives
- Free Valuation
- Free Application
Scheme Offers
- Inheritance Protection
- 8-Yr Fixed Early Repayment Charges
- 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 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.
- Detailed information about the Capital Select Lite scheme.
- Whether this plan could be right for you and your family.
- How low the current interest rates are for the Capital Select Lite product.
What's Equity Release?
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.
Learn More: What’s Equity Release?
How Does Equity Release Work?
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: How Does Equity Release Work?
How Much Can You Release?
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Most popular reasons for releasing equity
- Add to your retirement income.
- Pay off your credit debts or loans.
- Gifting money to family. (E.g. helping children pay a deposit on their first house)
- Paying off an existing debt.
- Going on that dream holiday.
- Replacing your car with the one you've always wanted.
- Making home & garden improvements.
Who Are Canada Life?
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 plan with voluntary payments is £70,000, with a maximum overall property value of up to £6 million across the country. Contact the Equity Release Supermarket team on Freephone 0800 802 1051 for a bespoke quotation for property valuations higher than £6m.
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 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 plan is a straightforward lump sum lifetime mortgage with the option of making repayments in installments, and it provides a one-time tax-free cash lump amount at start.
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 every homeowner to spend their tax-free cash as they see fit and to make a voluntary payment that corresponds to their affordability levels rather than that of the lenders, as a traditional mortgage would.
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.
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
Canada life plan updates are still in the works. We will give an update soon.
Footnotes
*The Capital Select Lite Plan includes the option of adding a drawdown facility, which increases 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
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Contributors: Nicola Date, Katherine Read
Reviewed by Francis Hui
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. Learn more about our editorial guidelines.
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