Canada Life Capital Select Super Lite Flexi

Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui

Are You Considering the Capital Select Super 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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Canada Life Capital Select Super Lite Flexi Review

Capital Select Super Lite Flexi Key Details

Type Rate APR
Canada Life Fixed 3.44% 3.57%

Scheme Incentives

  • Cashback
  • Free Valuation
  • Free Application

Scheme Offers

  • 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 Super 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 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.

Could the Canada Life Capital Select Super 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!

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.
Check the list of Canada Life equity release schemes here.
Canada Life Capital Select Super Lite Flexi

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 begin with the lowest loan-to-values given by the ‘Super Lite’ products and go through the Lite, Gold, Gold Plus, Platinum, and Platinum Plus variants, which offer rising maximum loan amounts.

Minimum Property Valuation

The lowest eligible property valuation for the Canada Life Capital Select Super 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 Super 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 years old or younger.

Minimum Release

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.

Scheme Features

The Canada Life Capital Select Super Lite Flexi plan has the lowest loan-to-value ratio of any product in Canada Life’s product line for those over the age of 55. As a result, it is intended for individuals seeking a modest equity release lump amount in conjunction with a highly competitive interest rate.

Even with the lowest loan-to-value ratios available, the Capital Select Super Lite Flexi plan allows for ad hoc or scheduled voluntary repayments. The sole difference between this Super Lite plan and the Lite and Gold 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 Super Lite Plan will provide a considerably lesser loan amount, generally 3% less than the Lite option and 6% less than the Gold plan. However, as a result of this, the Capital Select Super Lite plan has the lowest interest rate among all of their lifetime mortgage 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 certain life events.

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.

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 Super 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. 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 minimum withdrawal amount is £2,000 per transaction, and there are no administration costs associated with these transactions.

Repayment Options

Homeowners may control – if they choose – the future balance of their Capital Select Super 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

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.

Cashback Options

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.

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.

Editor’s Rating: 4.8

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.

Before You Go

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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.

rachel w

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.
John Lawson

Written by
John Lawson
Founder SovereignBoss

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.
francis

Reviewed by
Francis Hui
Senior Risk Manager

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.
kath icon

Katherine Read
Consumer Affairs Writer

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.
nicola

Nicola Date
Writer & Journalist

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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As Featured In
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