Home adaptations and improvements remained the most common reason for taking out a lifetime mortgage in the first half of 2026, Canada Life data shows.

The retirement provider said 43% of prospective home finance customers cited adaptations or improvements as a primary reason for releasing equity from their property.

Clearing an existing mortgage was cited by 30% of applicants, up from 27% across 2025. The figure also increased from 27% in the first quarter of 2026 to 32% in the second quarter.

However, the proportion remains below the 46% recorded five years ago.

Day-to-day living was cited by 24% of applicants, while debt consolidation and establishing an emergency fund were each named by 22%.

Gifting to family accounted for 15% of applications in the first half, down from 19% in 2025. It remained above the 11% recorded in 2022 and 10% in 2023.

The use of equity release to pay for holidays also declined, from 26% in 2025 to 21% in the first half of this year. Canada Life said demand for car purchases and additional properties had also fallen as borrowers focused more on essential expenditure and longer-term financial security.

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.”

TOP REASONS FOR RELEASING EQUITY

Home adaptations or improvements ranked first in both periods, accounting for 43% of applications in the first half of 2026 and across 2025.

Clearing an existing mortgage rose from second place at 27% in 2025 to 30% in the first half. Day-to-day living remained third but declined from 27% to 24%.

Debt consolidation increased from 21% to 22%, moving from sixth to fourth place, while emergency funds rose from 21% to 22% and remained fifth. Holidays dropped from fourth to sixth place, while gifting to family remained seventh.