Canada Life Lifestyle Lite
Contributors: Nicola Date, Katherine Read. Rachel Wait & Reviewed by Francis Hui
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Canada Life Lifestyle Lite Review
Lifestyle Lite Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 2.92% | 3.07% |
Scheme Incentives
- Free Valuation
Scheme Offers
- Fixed Early Repayment Charges
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 Lifestyle 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.
- We'll provide detailed information about the Lifestyle Lite scheme.
- We’ll help you assess whether this plan could be right for you and your family.
- We'll explain how low the current interest rates are for the Lifestyle Lite product.
What’s Equity Release?
An equity release mortgage (see What’s Equity Release?) 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.
We’ve summed up the most important information about the topic in this quick video.
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
Canada Life Lifestyle Options has three main product lines: the Lifestyle Lite, which has the lowest interest rate and loan-to-value; the Lifestyle Gold, which is the mid-range plan; and the Lifestyle Platinum, which has a higher interest rate but a larger maximum loan amount.
The highlighted Lifestyle Lite Plan does not allow for any repayments. As a result, this would fit an applicant with little retirement income and the understanding that the interest paid will roll over.
Minimum Property Valuation
The lowest property valuation accepted by the Canada Life Lifestyle Lite program is £70,000, with a maximum aggregate property value of up to £6 million across the UK.
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
The Canada Life Lifestyle Lite plan is available 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 application. The youngest applicant for a joint equity release must be 90 years old or younger.
Minimum Release
The lowest release at the application stage is £10,000, with a maximum equity release value of £1 million accessible nationally and subject to underwriting.
Scheme Features
The Canada Life Lifestyle Lite plan is a one-time lump sum lifetime mortgage program that gives an instant tax-free lump sum cash release. This is perfect for people who just need a single quantity of money and will not require any extra funds in the future.
The early repayment costs (ERCs) are one of the most appealing aspects of the Lifestyle Options plan line. Canada Life only charge an early repayment charge for the first 8 years following inception, or additional borrowing on this equity release loan. Early repayment penalties begin at 5% for the first five years, then decrease to 3% for the following three years, with no penalty thereafter.
Should the cash reserve be depleted, more borrowing is accessible in the future, with a minimum extra borrowing amount of £4,000 and no completion fee paid by Canada Life.
Valuation Features
A generous free unlimited valuation is provided, as well as a set lifetime interest rate on the capital amount taken.
Equity Release Council Status
Because Canada Life is a member of the Equity Release Council, all of its plans include a no-negative equity guarantee. The importance of this is that any beneficiaries cannot be left with a debt owed to the equity release business if the property is eventually sold..
Scheme Options
This Canada Life Lifestyle Lite Mortgage allows any homeowner to spend their tax-free money however they see fit, with no obligation to make payments.
The Inheritance Protection feature, which allows the homeowner to obtain a predetermined proportion of the property’s ultimate selling value, is an option for inclusion. This is critical for individuals who want to ensure a percentage of the property value from their inheritance.
As a core lump sum product, there is also the option of adding the cash withdrawal facility, which adds 0.2 percent to the regular equity release interest rate. (The interest rate indicated already includes the 0.2 percent bonus.)
For more information or to seek a quote on the Canada Life Lifestyle Lite Lump Sum plan, call the team now.
Canada Life's Other Equity Release Schemes
Are you looking for a specific equity release scheme?
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!
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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.
