Canada Life has announced the launch of Advantage, a new range of interest serviced lifetime mortgage products which offers customers a discounted interest rate when they commit to making regular monthly interest payments.
Customers can choose to service 25%, 50%, 75%, or 100% of their monthly interest, with the rate discount increasing in line with the percentage selected.
The Advantage range includes a range of LTV and interest rate options to suit different customer needs.
In addition to adhering to the Equity Release Council’s standards, Canada Life’s Advantage products come with a range of features, offering customers protection and flexibility throughout the duration of their lifetime mortgage:
• Additional voluntary repayments: Customers can make additional voluntary repayments in addition to their monthly interest repayments, up to 10% of the initial loan amount each year without any early repayment charges.
• Downsizing protection: Customers will not need to pay an early repayment charge if they decide to downsize after three years.
• Early repayment waiver for joint borrowers: Customers will not pay an early repayment charge if they decide to repay the lifetime mortgage within three years of the date that the first borrower dies or goes into long term care.
• Inheritance protection guarantee: Customers can protect a percentage of the property’s future value which can be passed to them or their beneficiaries when their property is sold, regardless of how much is outstanding on the loan.
• Flexible underwriting: Canada Life considers properties with up to 100% flat roofs, with unlimited acreage, ex-local authority flats, modern builds and listed properties.
All Canada Life home finance customers also have access to a range of virtual health and wellbeing support services through WeCare, accessed at no extra charge via the WeCare app, website or over the phone.
Pete Maddern, managing director of retirement at Canada Life, commented: “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.”
