Canada Life Second Home Lifestyle
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Canada Life Second Home Lifestyle Review
Second Home Lifestyle Key Details
| Type | Rate | APR | |
|---|---|---|---|
 |
Fixed | 5.63% | 5.90% |
Scheme Incentives
- Free Valuation
Scheme Offers
- Non-Equity Release Council Standards
- Release Equity on Second Home
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 Second Home Lifestyle, 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 Second Home Lifestyle scheme.
- Whether this plan could be right for you and your family.
- How low the current interest rates are for the Second Home Lifestyle 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 Canada Life Second Home Lifestyle Options program allows for a minimum loan sum of £10,000 and a maximum loan amount of £750,000. The minimum age is only 55, while the maximum age is 90. If two homeowners borrow together, the youngest borrower must be 90 or younger.
To take advantage of their Second Home plan, the property must be made available for the owner and their family’s sole occupation. When utilized for this reason, Canada Life requires that the property be used by the family for at least four weeks each year.
Canada Life will enable it to be rented out, but only for a maximum of four weeks at a time. To qualify, there must be no formal agreements or Assured Shorthold Tenancies in existence.
Furthermore, the second home property may not be promoted for rental reasons, such as through an estate agency, even if it is done online.
Minimum Property Valuation
The property value range suitable for the Canada Life 2nd Home equity release plan is £70,000 to £6 million. Properties worth more than £6 million, on the other hand, can still be examined separately.
Property Location Requirements
The property must also be located in England, Wales, or Scotland to qualify.
Single vs Joint
Canada life plan updates are still in the works. We will give an update soon.
Minimum Release
The loan-to-values for the 2nd Home equity release product range begin at 19 percent at age 55 and finish at 44 percent of the property value at ages 80-90. These are smaller lending percentages than the normal Canada Life equity release product range, but they reflect the added risk of lending on second residences.
Scheme Features
The Canada Life Second Home Lifestyle Options plan offers a one-time lump sum payout to homeowners. Because no payments are required with this featured plan, interest accrues like it would with any regular roll-up lifetime mortgage. The interest is charged to the loan each month for the duration of the loan and is only repaid upon the homeowner’s death or long-term care.
Additional borrowing is permitted under the Lifestyle Options plan, and approval is contingent on meeting the criteria at the time of this separate application. The lowest amount that may be borrowed under extra borrowing is £4,000, and there is no finishing charge.
More significantly, the owner retains the value of the No Negative Equity Guarantee, set lifetime interest rate, and independent appraisals.
Valuation Features
Canada life plan updates are still in the works. We will give an update soon.
Early Repayment Feature
The early repayment charges (ERCs) are favorable, since they are set for the whole loan term of 8 years, as well as any extra borrowing done in the future. The early repayment penalty is 5% for years 0-5. The fee is 3% for years 6-8, and there is no early repayment charge for years 9 and above.
Equity Release Council Status
Despite the fact that Canada Life is a member of the Equity Release Council (ERC), this Second Home Lifestyle Mortgage does not fulfill all of the product requirements. This only applies if the homeowner does not have the right to live in the property for the rest of his or her life or moves into long-term care, which isn’t a big deal for a second house.
Joint Application Features
Canada life plan updates are still in the works. We will give an update soon.
Scheme Options
The Over 55 Second Home Lifestyle plan eliminates the need for homeowners to make payments; instead, the interest is rolled up and added to the current loan sum. As a result, this program is most appealing to property owners who desire a flat amount and no repayments that would influence their monthly budget. On this Lifestyle edition, partial payments are permitted; nevertheless, an early repayment fee may apply.
The Canada Life Second Home plans are suited for homeowners who own one or more properties and want to use an equity release strategy to generate cash for any reason. These might be for the purpose of avoiding capital gains tax by not selling their second home and instead releasing equity to fund other initiatives.
Furthermore, second homeowners may desire to pay off an existing interest-only mortgage if no endowment or other repayment vehicle is available. Again, rather of selling the house, a second/holiday home equity release may be utilized to refinance the property, allowing them to keep ownership of a vacation home until their retirement.
Second, the discharge of home equity might be utilized to reduce inheritance tax. As mortgage debt accumulates over time, it has the potential to diminish the net worth of the estate.
Other applications include using the Canada Life Second Home Lifestyle plan to help with long-term care financing, as part of a divorce settlement, and a variety of other things.
Our local Equity Release Supermarket advisers are available to discuss and advise on the possible benefits of Canada Life’s 2nd Home lifetime mortgage products.
To find out more about the Canada Life Second Home Lifestyle Scheme or to receive a quote, call the Equity Release Supermarket team at 0800 802 1051 now.
Repayment Options
Canada life plan updates are still in the works. We will give an update soon.
Inheritance Protection
Canada life plan updates are still in the works. We will give an update soon.
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
Canada life plan updates are still in the works. We will give an update soon.
Canada Life's Other Equity Release Schemes
Are you looking for a specific equity release scheme?
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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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