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Canada Life Reinsurance has committed €100m in additional funding to lifetime loans lender, Spry Finance.
The company’s funding arrangement has been extended to the end of December of next year.
Last year Canada Life Reinsurance agreed to provide €100m to re-finance Spry’s loan book and fund future lending.
“The new funding arrangement with Canada Life Reinsurance is a strong endorsement of Spry Finance’s performance, the company’s lifetime loan products, and the viability of the equity release and later life lending sector in Ireland,” said Chief Executive of Spry Finance, John Moriarty.
“This deal will allow Spry to continue to grow the sector and deliver real choice for older people when it comes to borrowing – something that traditional lenders don’t provide.”
Irish owned, Spry Finance provides loans to those aged over 60 which are secured against the value of their home, while still retaining full ownership.
The products enable older people to release equity from their property, with the money repayable either on the sale of the home or if the owner dies or permanently ceases to live there.
There are no regular repayments needed, but interest is added to the loan balance each month and so the loan grows over time.
This has led some financial experts to warn that those entering a lifetime loan arrangement need to fully understand the implications and the costs involved.
Spry Finance is currently the owner provider of lifetime loans in the Irish market and since launching two years ago has provided loans to 1,300 customers.
It is the retail arm of Seniors Money, which has over €400m of assets under management.
By 2025, it expects to have grown yearly lending to €150m through existing and new products.
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