According to Canada Life figures, which compared data from H1 2024 to H1 2025, 22% of applications in the first half of this year cited gifting as their purpose. This is up from 13% in the same period last year.
The lender also said it had seen a 7% increase in lifetime mortgage applications being cited for day-to-day living costs, up from 20% in 2024 to 27% in 2025.
There has also been a rise in emergency fund usage, going from 9% last year to 21% in 2025, which the firm said echoed “wider inflationary and cost-of-living pressures”.
| Rank | H1 2025 | Percentage of total applications for lifetime mortgages |
H1 2024 | Percentage of total applications for lifetime mortgages |
| 1 | Home adaptations or improvements | 43% | Clear existing mortgage | 42% |
| 2 | Clear existing mortgage | 27% | Home adaptations or improvements | 34% |
| 3 | Day-to-day living | 27% | Consolidating debt | 21% |
| 4 | Holidays | 25% | Holidays | 21% |
| 5 | Gifting to family and friends | 22% | Day-to-day living | 20% |
Canada Life said the top reason for lifetime mortgage loans between 2018 and 2024 was paying off existing mortgages, but it said that people are increasingly releasing equity for a wider range of reasons each year.
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Sadna Zaman, home finance proposition development manager at Canada Life, said: “We’re seeing more people turn to equity release, not just for one-off expenses or big-ticket projects like home improvements or paying off an existing mortgage, but increasingly as an estate planning tool.
“With the government recently confirming its intention to bring unused pension funds into the scope of inheritance tax from April 2027, we anticipate that even more individuals will be turning to equity release as a way to support family members through gifting, while also potentially reducing their future inheritance tax liabilities. It’s clear that many want to see their loved ones enjoy the benefits of their support now.”
She continued: “Furthermore, increasing numbers of homeowners citing day-to-day living costs and emergency funds as the reasons for their application signals that the cost of living in retirement is becoming more challenging.
“With many current and future retirees predicted to lack sufficient pension funds to support them in retirement, our figures underscore the role that property wealth can play as a core pillar of financial planning in later life – whether to cover everyday expenses, emergency reserves, or to fund home renovations and experiences that improve quality of life.”
