Canada Life has responded to the Autumn 2019 Market Report released today by the Equity Release Council (ERC). The report reveals that equity release customers saw an unparalleled amount of product choice and flexibility in the first half of 2019, and that the average equity release rate fell below 5% for the first time.
Alice Watson, Head of Marketing and Communications at Canada Life Home Finance, said:
“Today’s report demonstrates how responsive the equity release industry is to evolving customer needs. Providers know that customers value flexibility and security, and so have ensured product development continues to focus on these areas.
“Robust market competition and consumer demand is fuelling product innovation. And with more choice and flexibility, equity release products are now more accessible and adaptable, which will, in turn, continue to increase consumer demand.
“It’s not just consumers who benefit from increased product choice; advisers are also given an extra string to their bow, as they are better equipped to meet clients’ requirements. This is a timely reminder of how important advisers are, and why it’s so important that the industry does all it can to ensure they have access to the information and support they are asking for.
“It’s worth noting that repayments are among the top growth areas for product features. At Canada Life, we are encouraging both advisers and consumers to understand the impact that making payments has on the total loan. One common misconception about lifetime mortgages is that the loan must roll-up, doubling in size over time. However, these options allow consumers to remain in control of the loan balance, and reduce, or even eliminate, the impact of interest roll-up.”