Canada Life Capital Select Super Lite

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

Are You Considering the Capital Select Super Lite 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 Review

Capital Select Super Lite 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, 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 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!
Canada Life Capital Select Super Lite

What’s Equity Release?

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 the age of 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?

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

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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.

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 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 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 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.

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 plan has the lowest loan-to-value ratio of all of Canada Life’s products 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 though the Capital Select Super Lite plan has the lowest loan-to-value ratios, it nevertheless 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 Super 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 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.

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 excellent for people seeking a little cash facility while also maintaining control of the balance through monthly repayments and having access to future money. The minimum drawdown permitted is £2,000 per withdrawal, and there are no administrative costs for these withdrawals.

Repayment Options

Homeowners can control the future balance of their Capital Select Super 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.

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 Super Lite Plan raises the interest rate by 0.2 percent.
*Adding a drawdown facility to the Capital Select Super Lite Plan raises the interest rate by 0.2 percent.
**The free application offer is valid until March 31, 2021 (usually £650 in England and Wales and £795 in Scotland).

Editor’s Rating: 4.78

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 or compare interest rates on equity release!

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.

HOW MUCH EQUITY CAN YOU RELEASE?

Most people are using equity release as a means of retaining the use of their house while also obtaining a lump sum or a steady stream of income. Get matched with an expert and check your eligibility for equity release options.

See how much you can release today!

How Much Can You Release?

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As Featured In
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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.
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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.
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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.
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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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