For adviser use only Product overview Home Finance This product overview applies to our mortgage products which are secured on a customer s main residence, second home or Buy-to-Let property. You can use this overview to see which product features are shared across the product range, and which are product specific. Please note, this is correct at time of publication 20 th March 2019. Please visit www.canadalife.co.uk to access the most recent copy. Main residence Lifetime Mortgages shared features: Fixed early repayment charges (ERCs) Free valuations Option to add a cash reserve facility No affordability checks Inheritance guarantee Equity Release Council product standards Option to take additional borrowing Interest rates Property value: Minimum Maximum Property location Fixed for 8 years (or 10 years with our Prestige Options) after the completion of the initial loan, cash reserve facility withdrawal or additional borrowing. Not applicable thereafter. Please refer to our Guide to Fixed ERCs. We don t charge a valuation fee for your customer s initial advance, and there is no cap based on the property value If your customers choose to have this product feature, their monthly interest rate will increase by 0.20% MER (0.21% AER). We don t require any proof of affordability Free of charge. Please refer to our Inheritance Guarantee guide Including a No Negative Equity guarantee, simple and clear documentation, fixed interest rates, the right to move the loan to another property, and the right to remain in the property Subject to lending criteria at the time of application Fixed for the life of the loan 70,000-6 million, nationwide. Properties above 6 million are reviewed on a case by case basis England, Scotland and Wales Minimum loan size 10,000 1
Main residence interest roll-up Lifetime Mortgages varied features: Lifestyle Options Prestige Options How it works Interest roll-up lifetime mortgage. Interest roll-up lifetime mortgage. Minimum age of youngest borrower 55 on Lifestyle Lite and Lifestyle Gold. 60 on Lifestyle Gold Plus, Lifestyle Platinum and Lifestyle Platinum (Cashback). 60. Maximum loan amount 1 million. 2 million. Will you consider bespoke cases? On a case by case basis. On a case by case basis. Is cashback available? Can payments be made? Fixed ERC period - year of repayment and percentage of the borrowing payable Yes. Available on Lifestyle Platinum (Cashback) only. 3% of the initial loan amount. No cap and no minimum loan amount. This is an interest roll-up mortgage. If payments are made, they will be treated as partial redemptions and may incur an ERC. 8 years All Lifestyle Options except Lifestyle Platinum (Cashback) Lifestyle Platinum (Cashback) only 0 5 years 5% 0 5 years 8% 6 8 years 3% 6 8 years 6% 9 + years 0% 9 + years 0% No. This is an interest roll-up mortgage. If payments are made, they will be treated as partial redemptions and may incur an ERC. 10 years 0 5 years 10% 6 10 years 5% 11 + years 0% Downsizing protection? No. If you have to repay some of your mortgage you may incur an ERC. No. If you have to repay some of your mortgage you may incur an ERC. Early Repayment Waiver? No. If you have to repay some of your mortgage you may incur an ERC. No. If you have to repay some of your mortgage you may incur an ERC. 2
Main residence interest roll-up Lifetime Mortgages interest rates and LTVs: Lifestyle Lite Lifestyle Gold Lifestyle Gold Plus Lifestyle Platinum Lifestyle Platinum (Cashback) Prestige Options Monthly interest rate (MER) Annualised interest rate (AER) 4.02% 4.39% 5.45% 6.39% 6.67% 5.17% 4.09% 4.48% 5.59% 6.58% 6.88% 5.29% Age LTV % LTV % LTV % LTV % LTV % LTV % 55 11% 16% - - - - 56 12% 17% - - - - 57 13% 18% - - - - 58 14% 19% - - - - 59 15% 20% - - - - 60 16% 21% 26% 32% 32% 23% 61 17% 22% 27% 33% 33% 24% 62 18% 23% 28% 34% 34% 25% 63 19% 24% 29% 35% 35% 26% 64 20% 25% 30% 36% 36% 27% 65 21% 26% 31% 37% 37% 28% 66 22% 27% 32% 38% 38% 29% 67 23% 28% 33% 39% 39% 30% 68 24% 29% 34% 40% 40% 31% 69 25% 30% 35% 41% 41% 32% 70 26% 31% 36% 42% 42% 33% 71 27% 32% 37% 43% 43% 34% 72 28% 33% 38% 44% 44% 35% 73 29% 34% 39% 45% 45% 36% 74 30% 35% 40% 46% 46% 37% 75 31% 36% 41% 47% 47% 38% 76 32% 37% 42% 48% 48% 39% 77 33% 38% 43% 49% 49% 40% 78 34% 39% 44% 50% 50% 41% 79 35% 40% 45% 51% 51% 42% 80-90 36% 41% 46% 52% 52% 43% 3
Main residence repayment Lifetime Mortgages varied features: Interest Select Options Capital Select Options Voluntary Select Options How it works Interest servicing lifetime mortgage. Interest roll-up lifetime mortgage with option to make repayments. Interest roll-up lifetime mortgage with option to make repayments. Minimum age of youngest borrower 55. 55. 55. Maximum loan amount 750,000 Cases between 750,000 and 1 million will be considered on a case by case basis. 1 million. 750,000 Cases between 750,000 and 1 million will be considered on a case by case basis. Will you consider bespoke cases? Yes, we will consider flat roofs (over 45%), ex-local authority flats, properties adjacent to commercial premises, flats over 6 storeys, with a lift and listed properties, subject to Underwriting approval. If we accept the bespoke case, the interest rate will increase by 0.50% MER (0.50% AER). On a case by case basis. Yes, we will consider flat roofs (over 45%), ex-local authority flats, properties adjacent to commercial premises, flats over 6 storeys, with a lift and listed properties, subject to Underwriting approval. If we accept the bespoke case, the interest rate will increase by 0.50% MER (0.50% AER). Is cashback available? Can payments be made? Yes. 1,000 cashback is available on loans over 40,000. The cashback is not repayable. If this product feature is added to the lifetime mortgage, the interest rate will increase by 0.10% MER (0.10% AER). Yes. Borrower can service 50% - 100% of the interest, for a minimum of 5 years. Option to convert to roll-up at any time, but charges may apply. No. Yes. Borrower can repay capital and interest by making voluntary repayments of up to 10% of the initial loan amount each year, ERC free. How often are payments made? Monthly, on the first working day of the month. Unlimited, from 50. Can make payments from day one, and no impact if additional borrowing is taken. How are payments made? Direct debit only. Standing order, debit card, BACs transfer or cheque. Fixed ERC period - year of repayment and percentage of the borrowing payable 8 years 0 5 years 5% 6 8 years 3% 9 + years 0% 8 years 0 5 years 5% 6 8 years 3% 9 + years 0% No. Yes. Borrower can repay capital and interest by making voluntary repayments of up to 15% of the initial loan amount each year, ERC free. Unlimited, from 50. Can make payments from day one, and no impact if additional borrowing is taken. Standing order, debit card, BACs transfer or cheque. 8 years 0 5 years 5% 6 8 years 3% 9 + years 0% Downsizing protection? If, after 5 years, the loan is repaid because the customers sell their home and move to a different property, an ERC is not applied. If, after 5 years, the loan is repaid because the customers sell their home and move to a different property, an ERC is not applied. If, after 5 years, the loan is repaid because the customers sell their home and move to a different property, an ERC is not applied. Early Repayment Waiver? If the loan is repaid within 3 years of the date that the first borrower dies or goes in to long term care, an ERC is not applied. If the loan is repaid within 3 years of the date that the first borrower dies or goes in to long term care, an ERC is not applied. If the loan is repaid within 3 years of the date that the first borrower dies or goes in to long term care, an ERC is not applied. 4
Main residence repayment Lifetime Mortgages - interest rates and LTVs: Interest Select Gold Interest Select Platinum Capital Select Lite Capital Select Gold Capital Select Gold Plus Capital Select Platinum Voluntary Select Gold Voluntary Select Platinum Monthly interest rate (MER) 5.36% 5.83% 3.79% 4.27% 4.59% 5.41% 5.55% 6.12% Annualised interest rate (AER) 5.49% 5.99% 3.86% 4.35% 4.69% 5.55% 5.69% 6.29% Age LTV % LTV % LTV % LTV % LTV % LTV % LTV % LTV % 55 19% 24% 8% 13% 18% 23% 19% 24% 56 20% 25% 9% 14% 19% 24% 20% 25% 57 21% 26% 10% 15% 20% 25% 21% 26% 58 22% 27% 11% 16% 21% 26% 22% 27% 59 23% 28% 12% 17% 22% 27% 23% 28% 60 24% 29% 13% 18% 23% 28% 24% 29% 61 25% 30% 14% 19% 24% 29% 25% 30% 62 26% 31% 15% 20% 25% 30% 26% 31% 63 27% 32% 16% 21% 26% 31% 27% 32.5% 64 28% 33% 17% 22% 27% 32% 28% 33.5% 65 29% 34% 18% 23% 28% 33% 29% 35% 66 30% 35% 19% 24% 29% 34% 30% 36% 67 31% 36% 20% 25% 30% 35% 31% 37.5% 68 32% 37% 21% 26% 31% 36% 32% 38.5% 69 33% 38% 22% 27% 32% 37% 33% 40% 70 34% 39% 23% 28% 33% 38% 34% 41% 71 35% 40% 24% 29% 34% 39% 35% 42.5% 72 36% 41% 25% 30% 35% 40% 36% 43.5% 73 37% 42% 26% 31% 36% 41% 37% 45% 74 38% 43% 27% 32% 37% 42% 38% 46% 75 39% 44% 28% 33% 38% 43% 39% 47% 76 40% 45% 29% 34% 39% 44% 40% 48% 77 41% 46% 30% 35% 40% 45% 41% 49% 78 42% 47% 31% 36% 41% 46% 42% 49% 79 43% 48% 32% 37% 42% 47% 43% 49% 80-90 44% 49% 33% 38% 43% 48% 44% 49% 5
Second home Lifetime Mortgages shared features: Fixed early repayment charges (ERCs) Free valuations Option to add a cash reserve facility No affordability checks Equity Release Council Product Standards Option to take additional borrowing Interest rates Fixed for the first 8 years after the completion of the initial loan, cash reserve facility withdrawal or additional borrowing. Not applicable thereafter. Please refer to our Guide to Fixed ERCs. We don t charge a valuation fee for your customer s initial advance, and there is no cap based on the property value. Not available. We don t require any proof of affordability. These products do not meet all of the product standards as they are not secured on the main residence. The following standards do not apply: The right to remain in the property for life, or until the customer moves into long term care However, the remaining standards do apply, including a No Negative Equity Guarantee, fixed interest rates and independent legal advice. Yes, subject to lending criteria at the time of application. Fixed for the life of the loan. Age: Minimum Maximum 55-90. Property value: Minimum Maximum Property location Loan size: Minimum Maximum 70,000-6 million, nationwide. Properties above 6 million are reviewed on a case by case basis. England, Scotland and Wales. 10,000-750,000, nationwide. 6
Second home Lifetime Mortgages - interest rates and LTVs: Second Home Lifestyle Second Home Voluntary Select Monthly interest rate (MER) 5.99% 6.18% Annualised interest rate (AER) 6.16% 6.36% Age LTV % LTV % 55 14% 14% 56 15% 15% 57 16% 16% 58 17% 17% 59 18% 18% 60 19% 19% 61 20% 20% 62 21% 21% 63 22% 22% 64 23% 23% 65 24% 24% 66 25% 25% 67 26% 26% 68 27% 27% 69 28% 28% 70 29% 29% 71 30% 30% 72 31% 31% 73 32% 32% 74 33% 33% 75 34% 34% 76 35% 35% 77 36% 36% 78 37% 37% 79 38% 38% 80-90 39% 39% 7
Buy-to-Let Mortgages shared features: Fixed early repayment charges (ERCs) Free valuations Option to add a cash reserve facility No affordability checks Equity Release Council Product Standards Regulation and the FSCS Option to take additional borrowing Interest rates Fixed for the first 8 years after the completion of the initial loan, cash reserve facility withdrawal or additional borrowing. Not applicable thereafter. Please refer to our Guide to Fixed ERCs. We don t charge a valuation fee for your customer s initial advance, and there is no cap based on the property value. Not available. We don t require any proof of affordability. These products do not meet all of the product standards as they are not secured on the main residence. The following standards do not apply: The right to remain in the property for life, or until the customer moves into long term care The right to move to a suitable alternative property However, the remaining standards do apply, including a No Negative Equity Guarantee, fixed interest rates and independent legal advice. Buy-to-Let is not regulated by the Financial Conduct Authority (FCA). Consumer Buy-to-Let however, is regulated by the FCA. Whilst this Buy-to-Let Mortgage shares characteristics with a Lifetime Mortgage, it is not a Lifetime Mortgage, as defined by the FCA. This means that your customer will not benefit from the protection of the FCA conduct rules or the Financial Services Compensation Scheme (FSCS). The Over 55 Buy-to-Let Options meet the regulatory requirements for Consumer Buy-to-Let, and Canada Life are registered with the FCA as a Consumer Buy-to-Let lender. If it is a Consumer Buy-to-Let the regulatory requirements applicable to this type of mortgage will apply. Yes, subject to lending criteria at the time of application. Fixed for the life of the loan. Age: Minimum Maximum 55-90. Property value: Minimum Maximum Property location Loan size: Minimum Maximum 70,000-6 million, nationwide. Properties above 6 million are reviewed on a case by case basis. England, Scotland and Wales. 10,000-750,000, nationwide. 8
Buy-to-Let Mortgages - interest rates and LTVs: Over 55 Buy-to-Let Lifestyle Over 55 Buy-to-Let Voluntary Select Monthly interest rate (MER) 5.99% 6.18% Annualised interest rate (AER) 6.16% 6.36% Age LTV % LTV % 55 14% 14% 56 15% 15% 57 16% 16% 58 17% 17% 59 18% 18% 60 19% 19% 61 20% 20% 62 21% 21% 63 22% 22% 64 23% 23% 65 24% 24% 66 25% 25% 67 26% 26% 68 27% 27% 69 28% 28% 70 29% 29% 71 30% 30% 72 31% 31% 73 32% 32% 74 33% 33% 75 34% 34% 76 35% 35% 77 36% 36% 78 37% 37% 79 38% 38% 80-90 39% 39% 9
Please note: A cash reserve facility can be added to any of our main residence product options (except Lifestyle Platinum (Cashback)) for an additional 0.20% MER (0.21% AER) A cash reserve facility cannot be taken if cashback is taken The interest rates applied to each cash reserve facility withdrawal or further advance is based on the prevailing cash reserve facility interest rate or further advance interest rate on the product at the time your customer chooses to apply. This interest rate may be higher or lower than the interest rate which is applied to their initial advance. Our current additional borrowing interest rates can be found on our website. The LTVs may be adjusted in certain circumstances, such as sheltered accommodation or non-standard construction types. Please speak to our Underwriting team for further information Fees The fees associated with setting up a Canada Life mortgage are: Valuation fee Free of charge, uncapped Completion fee England and Wales - 650 Scotland - 795 Payable when the mortgage completes, this fee can be added to the loan or paid at the point of completion Advice fee Legal fee Our full tariff of charges can be found on our website. Your customer is responsible for paying any advice fees Your customer is responsible for paying their legal fees 10
Contact us To discuss our Home Finance products, please contact: Email: hf-support@canadalife.co.uk Phone: 0800 068 0212 To talk a case through with our underwriters Email: hf-underwriting@canadalife.co.uk Phone: 0800 068 0212 To submit an application You can submit application forms to us: Online: kfi.canadalife.com/advisers/sign_in By email: hf-applications@canadalife.co.uk By post: Canada Life Home Finance, 110 Cannon Street, London, EC4N 6EU You can download our At a Glance guides to find out more about the product features, interest rates and LTVs. Visit our website for more information: www.canadalife.co.uk/adviser 11
Telephone calls may be recorded for training and quality monitoring purposes. Stonehaven UK Limited, trading as Canada Life, is a subsidiary of The Canada Life Group (U.K.) Limited. Authorised and regulated by the Financial Conduct Authority. Registered in England and Wales. Registered number: 05487702. Registered office: 6th Floor, 110 Cannon Street, London, EC4N 6EU. 30-043 03/19