Canada Life equity release rates are fixed for life and vary by plan and option; your illustration shows yours. Here are its two open plans and charges.

This page sets out the lifetime mortgages Canada Life describes on its own website and in its own documents, as they stood on 18 October 2026. It is not written by Canada Life, and the site has no connection with it. MoneyHelper's guide to equity release asks readers to "Consider how it could affect your future choices and what you want to do in later life", and is a good place to start. Canada Life never receives what you write in the form on this page; that enquiry goes, free, to a qualified equity release adviser who can look at your own circumstances.

Which lifetime mortgage plans does Canada Life offer?

Canada Life's lifetime mortgages page lists two plans under "Products we offer", each with its own page:

  • Advantage Options. The page describes it as "a lifetime mortgage that offers you a discounted rate, in return for your commitment to making a set monthly interest payment."
  • Capital Select Options. Repayments are optional: "there’s no penalty if you decide not to make repayments."

Two other plans were closed to applicants on 18 October 2026: Lifestyle Select Options ("we've stopped accepting new applications for this product") and Second Home Options ("we’ve temporarily stopped accepting new applications for this product").

Its customer guide says you must be "55 years of age or older" and your property must be in England, Scotland or Wales and be your main residence; its adviser rates page adds that "Our minimum ages vary from 55 to 60 across our product range." Equity release age limits covers the wider picture.

Canada Life equity release rates: how they are set

Canada Life says "All our products come with a fixed interest rate for life, as well as fixed early repayment charges". Which rate you get depends on the plan and the option within it: its customer guide explains that some products have "options that differ by the maximum amount you can borrow and the interest rate you’ll pay". On Advantage it also depends on the share of the monthly interest you pay (below).

Canada Life keeps its current rates in a calculator for advisers, so your figure comes in the illustration an adviser prepares; its Our Charges sheet says the interest rate "is explained in your Illustration". Its lifetime mortgage page adds that "Usually the interest rates for a lifetime mortgage are higher than the rates charged for a traditional mortgage." Equity release interest rates explains what moves rates generally, and how equity release interest builds up shows the effect over time.

How the plans differ: repayments, inheritance and downsizing

The two open plans differ mainly in how payments work:

  • Capital Select Options: voluntary repayments of up to 10% of the loan each year, and "There are no charges or fees if you choose not to make a payment"; unpaid interest is added to the loan each month. You can add a cash reserve "to access money later".
  • Advantage Options: you commit to paying "25%, 50%, 75% or 100% of the interest each month", and "The more interest you pay, the bigger your discount." Once chosen, the amount cannot be changed, but you can stop making payments at any time; if payments stop, or you miss more than three, the discount ends and a higher rate applies. Voluntary payments of up to 10% of the original loan a year carry no early repayment charge. There is no cash reserve. Interest-only lifetime mortgages explains how this kind of plan works generally.

Some products carry the Inheritance Protection option, which protects "a percentage of the eventual sale value of your home at the outset", though Canada Life notes a lifetime mortgage still "will reduce how much you can leave as an inheritance". How equity release affects inheritance goes further.

The early repayment charges are fixed. On Advantage they run for ten years: "Year 0-1 - 8%, Year 2 - 7%, Year 3 - 6%, Year 4 - 5%, Year 5 - 4%, Year 6 - 3%, Year 7 - 2%, Year 8-10 - 1%, Year 11+ - 0%". Downsizing protection differs by plan. Advantage says "If you decide to downsize after three years, you won’t need to pay an early repayment charge"; for Capital Select, Canada Life's adviser rates page puts it at five years. On both, joint borrowers can repay without a charge within three years of the first borrower dying or going into long-term care. See repaying equity release early and moving house with equity release.

Whether a lower Advantage rate is worth a fixed monthly payment, or Capital Select's freedom to pay nothing suits better, turns on your income and how long you expect to keep the loan. Weighing those two against your budget suits a qualified equity release adviser; questions like that one are what the form on this page handles.

Fees, advice and legal work

Of Capital Select, Canada Life says: "We won’t charge you any fees to set up this mortgage, which means there’s no valuation or completion fee. However, you’ll still need to pay solicitor and adviser fees." Its Our Charges sheet (reference 30-007 0325RC) lists a completion fee of £650, which "may be payable when the mortgage completes", says the valuation fee "is not payable for initial advance applications", and charges £200 on full redemption, added to the loan. Equity release fees covers adviser and legal costs more widely.

Two professionals are part of taking out the plan. Canada Life says "it is a Financial Conduct Authority regulation that you first seek advice from a qualified equity release adviser", and its charges sheet says you must "appoint your own independent solicitor". It is a member of the Equity Release Council, whose standards bind members only: they require independent legal advice, and a no-negative-equity guarantee conditional on a sale at the best price reasonably obtainable and on the loan's terms being met. The Council's standards sets them out.

Risks Canada Life lists, and homes in Scotland

How equity release works covers the general trade-offs. Canada Life's own list says the loan is "subject to compound interest, meaning the amount you owe can grow quickly", and that equity release will reduce the value of your estate and may affect your entitlement to means-tested benefits (see equity release and benefits); the early repayment charges above apply if you repay early. If a firm contacts you about equity release out of the blue, the FCA says you can use its Firm Checker to find out whether it is authorised (FCA, protect yourself from scams).

Canada Life lends on homes in Scotland, where Scots law requires a loan over land to be secured by a standard security (Conveyancing and Feudal Reform (Scotland) Act 1970, section 9).

Questions people ask about Canada Life equity release

Is there a Canada Life equity release calculator?

Its rates and loan-to-value calculator is marked "For adviser use only". Canada Life says the loan-to-value depends on age (the younger borrower's, for a couple). For the general limits on borrowing, see how much you could release.

Can I go to Canada Life directly?

Canada Life says "we only sell our lifetime mortgage products through financial advisers", and its product pages point to the Equity Release Council for finding one. MoneyHelper's equity release guide also explains how to find an adviser.

Can I borrow more later?

On Advantage, a further advance has "a minimum amount of £4,000" and needs financial advice first. Capital Select can carry a cash reserve set up at the outset. Either way the extra money has a fixed rate that may differ from the original one; see equity release top-ups.

Can I move house with a Canada Life lifetime mortgage?

Canada Life says you can transfer it to a new property "as long as it meets our lending criteria at the time"; its guide warns that moving somewhere cheaper may mean you "have to repay part of the loan".

Next step

If you would like Canada Life's plans looked at alongside your own income, home and family, mention Canada Life when completing the form on this page, which a qualified equity release adviser reads. Your own solicitor's independent advice follows if you go ahead.

Sources: Canada Life web pages: Advantage, Capital Select, Lifestyle Select, Second Home, Home finance, equity release, adviser rates; Lifetime Mortgages Customer Guide (30-012 0126RC) and Our Charges (30-007 0325RC); Equity Release Council standards. Accessed 18 October 2026.