Home improvements are still the top reason for releasing home equity, according to the latest data from financial services company Canada Life.
The company routinely questions its home finance customers about their reasons for requesting a lifetime mortgage, and in the first half of this year just under half (43%) said it was for maintain or enhancing their home – the same proportion as for the whole of 2025.
The number of customers releasing equity to clear an existing mortgage has risen since last year, up to 30% from 27%. The number is also rising by quarter, with 27% in Q1 2026 and 32% in Q2.
Five years ago, almost half (46%) of Canada Life’s customers cited clearing their mortgage as a reason for releasing equity.
Intergenerational gifting accounted for 15% of applications in the first half of this year, down from 19% in the whole of 2025. Use of equity release for discretionary spending such as holidays has also moderated, down from 26% in 2025 to 21% in the first six months of this year.
Sadna Zaman, home finance proposition manager at Canada Life, said: “Home adaptations and improvements remains the most popular reason for releasing equity, with customers using lifetime mortgages to help fund changes that allow them to stay in their own home and enhance their quality of life in retirement.
“The data also shows that appetite for discretionary spending on things like holidays has cooled in the first half of this year amidst ongoing cost-of-living pressures and market uncertainty. Instead, customers have increasingly been looking to build financial resilience by consolidating debt, building an emergency fund, or clearing an existing mortgage.
“The wide variety of reasons underlines the flexibility of equity release as a solution, and the importance of careful, tailored advice. With comfort, financial security and intergenerational planning all competing, advisers have a crucial role in helping clients weigh these different priorities and show how property wealth can fit into a broader, holistic retirement strategy.”
