Additional borrowing

Here at Canada Life we offer two different types of additional borrowing; cash reserve facility drawdowns and further advances. 

If your customer has a cash reserve facility, they will need to have withdrawn the total amount before they can apply for a further advance.

A fixed interest rate will be applied to each additional loan amount, based on the prevailing cash reserve facility interest rate or further advance interest rate on the product at the time when your customer applies. 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 here.

Your customer can drawdown from their cash reserve facility at any time, without needing further financial advice. To make a withdrawal:

  • Your customer will need to contact us on 0800 068 0212 and let us know they would like to make a withdrawal, how much they would like to withdraw, and what they plan to use the funds for
  • We will send them an Offer and an Offer Acceptance Form. They will need to fill out the form, and send it back to us
  • Once we have received their Offer Acceptance Form, completion will be subject to bankruptcy checks being satisfied and our charge having been fully registered
  • Once our checks have been completed, we will release the funds to their bank account. We will endeavour to release the payment as soon as is reasonably possible.

Please note, the minimum withdrawal amount is £2,000 and the maximum is the total of their facility. If the amount remaining in the cash reserve facility is less than £2,000, they can withdraw it but must do so in full.

If your customer has an interest servicing product, they may be able to choose to make interest payments on their withdrawals. If they have a flexible repayment product, they will be able to make repayments on their withdrawal.

The amount within the cash reserve facility is fixed at the outset. It does not increase in line with property value, age or repayments.

Your client will need to seek financial advice to apply for a further advance. To start the application, please send an email to our underwriters and request an illustration, confirming the following details:

  • The additional borrowing loan amount. Either a specific amount or the maximum amount available.
  • If an Interest Select Options product, whether you would like the loan to be on an interest paying or interest roll-up basis. If interest paying, please confirm the amount they wish to pay. For example, the full interest, or 50%.
  • Whether you would like a new property valuation to be carried out. If so, a valuation fee will be payable.
  • If you are charging an advice fee, and if so, the amount.

This information will allow us to produce an illustration. We will email you the illustration and an application form, which will need to be completed with the customer. Providing the application meets our criteria, we will send out an offer letter to your customer.

Please note, the minimum amount that can be taken as a further advance is £4,000.

Your customer must remain on their original product. For example, if they currently have an Interest Select Lite product, they cannot move to an Interest Select Gold product, they must remain within the LTVs available to Interest Select Lite.


You can view our current additional borrowing interest rates here.

This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.