Canada Life launches discounted rates for lifetime mortgage customers
The Advantage range provides a discounted interest rate for customers who commit to making regular monthly interest payments.
Canada Life has launched Advantage, a new range of interest-serviced lifetime mortgage products designed to offer customers greater flexibility and potential cost savings in retirement.
The Advantage range provides a discounted interest rate for customers who commit to making regular monthly interest payments.
Borrowers can choose to service 25%, 50%, 75%, or 100% of the monthly interest, with the level of discount increasing in line with the proportion paid.
The products offer a range of loan-to-value (LTV) and interest rate options intended to suit differing customer requirements.
In line with Equity Release Council standards, the Advantage range includes several features designed to provide protection and flexibility throughout the life of the mortgage.
Customers can make additional voluntary repayments of up to 10% of the initial loan amount each year without early repayment charges, alongside their monthly interest payments.
Downsizing protection allows borrowers to repay without an early repayment charge if they move to a smaller property after three years.
An early repayment charge (ERC) waiver is also available for joint borrowers if the mortgage is repaid within three years of the first borrower’s death or move into long-term care.
The products also include an inheritance protection guarantee, enabling customers to safeguard a percentage of their property’s future value for beneficiaries, regardless of the outstanding loan balance.
Canada Life said its underwriting approach allows consideration of a wide range of property types, including those with up to 100% flat roofs, unlimited acreage, ex-local authority flats, modern builds and listed properties.
All Canada Life home finance customers also receive access to virtual health and wellbeing support services through WeCare at no additional cost, available via app, website or telephone.
Pete Maddern, managing director, retirement at Canada Life, said: “The Advantage range has been designed to give customers greater choice and the opportunity to benefit from discounted rates.
“By rewarding those who choose to service a portion of their interest, we’re enabling customers to take more control over the total cost of their borrowing and make meaningful savings over the life of their loan.
“As property wealth becomes an increasingly important pillar of retirement planning, Advantage offers a way for customers to unlock value from their homes whilst retaining vital protections.
“With a host of features designed to provide both security and flexibility, Advantage is yet another example of how Canada Life continues to innovate, ensuring our products remain relevant and responsive to the evolving needs of our customers.”
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