More homeowners are using their property wealth to help out family and friends, according to Canada Life.
The retirement provider saw a 9% rise in lifetime mortgage applications for gifting, up from 13% in the first half of 2024 to 22% in the same period of 2025.
Over the same time, lifetime mortgage applications for day-to-day living costs increased by 7%, from 20% to 27%, and there was a 12% rise in applications for emergency funds, from 9% to 21%.
Canada Life’s figures showed the main reason for releasing equity between 2018 and 2024 was to clear an existing mortgage.
However, more people are now unlocking property wealth for a wider range of reasons each year.
In the first half of 2025, home adaptations or improvements became the top reason, cited by 43% of applicants, overtaking clearing an existing mortgage, which stood at 27%.
Other popular reasons included consolidating debt, holidays, and gifting to family and friends.
The market has seen steady growth, with the Equity Release Council reporting a 10% increase in total lending from Q2 2024 to Q2 2025.
This comes as inheritance tax (IHT) rules are set to bring pensions into scope from April 2027.
Sadna Zaman, home finance proposition development manager at Canada Life, said: “We’re seeing more people turn to equity release not just for one-off expenses or big-ticket projects like home improvements or paying off an existing mortgage, but increasingly as an estate planning tool.
“With the Government recently confirming its intention to bring unused pension funds into the scope of inheritance tax from April 2027, we anticipate that even more individuals will be turning to equity release as a way to support family members through gifting, while also potentially reducing their future inheritance tax liabilities.”
Zaman added: “It’s clear that many want to see their loved ones enjoy the benefits of their support now.
“Furthermore, increasing numbers of homeowners citing day-to-day-living costs and emergency funds as the reasons for their application signals that the cost of living in retirement is becoming more challenging.
“With many current and future retirees predicted to lack sufficient pension funds to support them in retirement, our figures underscore the role that property wealth can play as a core pillar of financial planning in later life – whether to cover everyday expenses, emergency reserves, or to fund home renovations and experiences that improve quality of life.”
