Borrowers who choose to make payments will not incur an early repayment charge under the Capital Select Options range.
The change is aimed at providing homeowners with additional flexibility and certainty in their lifetime mortgage, the provider said.
The range also features an early repayment waiver if after three years the first borrower dies or goes into long term care and there is no charge if the customer wants to downsize.
And borrowers can add a cash reserve facility to the mortgage, which allows available funds to be drawn when they are needed with interest accrued only on amounts taken.
It comes after Canada Life acquired financial services provider Retirement Advantage in January.
Alice Watson, head of marketing and communications at Canada Life Home Finance (pictured), said: “These new options demonstrate our commitment to being a leading provider which is tuned into the needs of the market and responding with innovation.
“By adding ways to increase the flexibility in our lifetime mortgages we aim to give customers greater control of how, when and if they repay their loans. The choices can be made by the customer and their adviser.
“Although people borrow at a certain point in time, lives change. Circumstances change. As a leading company in this market we have a responsibility to ensure that we give people as much control of their financial lives and decisions as possible.”