Canada Life has brought out a lifetime mortgage with a discounted rate in return for borrowers committing to regular monthly interest payments.
The Advantage range allows borrowers to service 25%, 50%, 75% or 100% of the monthly interest, with the discount increasing in line with the proportion paid.
The product also includes a choice of loan to value (LTV) and interest rate options to suit different borrower needs.
The Advantage range adheres to standards set by the Equity Release Council and offers additional voluntary repayments of up to 10% of the initial loan each year without penalty, downsizing protection and waiving of early repayment charges for joint borrowers who repay the mortgage within three years of the first borrower’s death or long-term care.
It also has an inheritance protection guarantee, protecting a percentage of the property’s future value to be passed on, and flexible underwriting.
All Canada Life home finance borrowers have access to virtual health and wellbeing support services through WeCare2 for no extra charge.
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Pete Maddern, managing director of 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.”