Canada Life Equity Release Review (2026)

💡Important: Consider all your options first

Martin Lewis, founder of MoneySavingExpert, has consistently warned that equity release should not be the first option you consider.

Before taking out a lifetime mortgage, he advises homeowners to explore alternatives such as:

• Downsizing to a smaller or less expensive property.
• Using existing savings or investments.
• Checking entitlement to state benefits or grants.
• Taking in a lodger (where appropriate).
• Remortgaging, if affordability allows.

Equity release can be the right solution for some people, but it is a long-term and irreversible commitment. Once interest begins to roll up, the cost can grow significantly over time.

This is why regulated advisers are required to discuss all realistic alternatives before recommending a lifetime mortgage, and why comparing options carefully is so important.

What Is Canada Life Equity Release?

Canada Life offers lifetime mortgages, the most common form of equity release in the UK.

A lifetime mortgage is a loan secured against your home. You retain full ownership of the property and the right to live there for the rest of your life, or until you move into permanent long-term care. The loan, plus any accrued interest, is typically repaid from the sale of the property at that point.

Key features include:

• Available to homeowners aged 55+.
• You continue to own your home.
• No required monthly repayments (unless you choose to pay interest voluntarily).
• Fixed interest rates for life.
• Loan repaid when the last borrower dies or moves into long-term care.
• A no negative equity guarantee, meaning you will never owe more than your home sells for.

Canada Life is regulated by the FCA and is a member of the Equity Release Council, which sets minimum consumer protection standards across the industry.

Canada Life Lifetime Mortgage Products

Canada Life offers a broad range of lifetime mortgage options, including:

• Capital Select Options – lump-sum lifetime mortgages.
• Lifestyle Select Options – drawdown lifetime mortgages, allowing you to release money in stages.
• Second Home Options – for customers who own more than one property.

Across these products, customers may benefit from:

• Choice of lump sum or drawdown.
• Fixed interest rates for life.
• Voluntary repayments (typically up to 10% per year, subject to terms).
• Optional inheritance protection.
• Free initial property valuation.

The suitability of each option depends on your personal circumstances, including age, property type, borrowing needs and long-term plans.

How Much Can You Borrow?

The amount you can release with Canada Life depends on several factors:

• Your age (or the age of the youngest applicant).
• The value and construction of your property.
• Whether you choose a lump sum or a drawdown plan.
• Any inheritance protection selected.
• Health or lifestyle factors that may qualify for enhanced terms.

As a general guide, loan-to-value ratios increase with age. Younger applicants may be able to release around 20–25% of their property’s value, rising significantly for older applicants.

An adviser will confirm eligibility and calculate the maximum amount available as part of the regulated advice process.

Interest Rates and Costs

Canada Life offers fixed interest rates for life, meaning the rate you start with will not change over time.

Key costs to consider include:

• The interest rate applied to the loan (quoted as AER).
• Legal fees.
• Advice and arrangement fees (varies by adviser).
• Early repayment charges apply if the loan is repaid early.

💡Interest compounds if it is not paid, meaning interest is charged on both the original loan and the interest already added. Over time, this can significantly increase the total amount owed.

Early repayment charges usually apply if you repay the loan within a set period (often around the first 8–9 years), after which they typically reduce or fall away entirely.

Pros and Cons of Canada Life Equity Release

Pros

• ✅Wide range of lifetime mortgage options.
• ✅ Lump sum and drawdown flexibility.
• ✅ Fixed interest rates for life.
• ✅ Voluntary repayment options.
• ✅ No negative equity guarantee.
• ✅ FCA regulated and ERC member.

Cons

• ❌ Compound interest can significantly increase the debt.
• ❌ Early repayment charges may apply.
• ❌ Reduces the value of your estate.
• ❌ May affect eligibility for means-tested benefits.
• ❌ Not always the lowest-rate option in the market.

Customer Reviews and Reputation

Canada Life has a 4.2⭐ star rating on Trustpilot from 755 reviews. It’s important to note that these reviews relate to all Canada Life products, including insurance, pensions and investment services, not equity release specifically.

Common themes in customer feedback include:

• Trust in a long-standing financial brand.
• Professional and structured service.
• Clear documentation.
• Mixed experiences around response times, typical of large organisations.

Because equity release is a specialist product, customer experience often depends as much on the adviser as the lender itself.

Is Canada Life Equity Release Good Value?

Canada Life offers a strong mix of security, flexibility and product choice. For some homeowners, this represents good value, particularly those who prioritise a well-established provider and long-term safeguards.

However, interest rates and product features vary across the market. In many cases, value depends less on the provider’s brand and more on how well the product fits an individual’s circumstances.

Comparing Canada Life with other lenders can help ensure you are not paying more than necessary or missing out on features that better suit your needs.

Canada Life vs Using a Whole-of-Market Broker

Canada Life is a single-provider lender, offering its own range of lifetime mortgages. While that works for some customers, equity release is highly personalised, and the most suitable product can vary widely from person to person.

This is where a whole-of-market broker such as Age Partnership can be valuable.

A whole-of-market adviser can:

• Compare multiple equity release lenders, including Canada Life
• Identify lower long-term costs for your circumstances
• Match features such as drawdown, repayments or inheritance protection to your goals
• Explore alternatives to equity release where appropriate
• Provide regulated advice tailored to you, not a single product

Age Partnership is recommended by Which? and specialises in later-life lending, helping customers understand the trade-offs before committing.

Who Might Canada Life Be Suitable For?

Canada Life equity release may suit homeowners who:

• Want a well-established, recognised provider
• Value a wide internal product range
• Are comfortable proceeding with a single lender
• Do not require the lowest possible interest rate

It may be less suitable for those who:

• Want to compare the full equity release market
• Are highly sensitive to interest rates
• Want the most tailored product match

Final Verdict

Canada Life is a credible and well-regulated equity release provider with a broad range of lifetime mortgage options and strong consumer protections.

That said, equity release is rarely a one-size-fits-all decision. For many homeowners, starting with a whole-of-market adviser such as Age Partnership provides greater confidence that the lender, rate and features truly match their circumstances.

Before proceeding, it’s worth comparing options and understanding the long-term impact, not just choosing the first provider you recognise.

Important Reminder

Equity release is a long-term commitment. It reduces the value of your estate, may affect benefits, and can be costly if repaid early.

Regulated advice is mandatory before taking out a lifetime mortgage.