Bloom Finance today announced the launch of its home equity release platform for 55+ homeowners across British Columbia.
The expansion into BC builds on Bloom’s successful launch in Ontario last year.
The Canadian fintech startup looks to simplify the process of accessing home equity through a reverse mortgage, enhancing Canadians’ financial flexibility in retirement.
Bloom’s unique financial product enables 55+ year-old Canadian homeowners to access up to 55% of their home value in tax-free funds. No regular principal or interest payments are required, with interest simply accruing over time, and the balance only payable when a borrower moves out, sells their home, or passes away.
“The rise in home prices across Canada in recent years has been especially pronounced in BC, which has helped BC homeowners accumulate significant wealth in home equity”, said Ben McCabe, CEO of Bloom.
“Unfortunately, costs of living have gone in the same direction. Bloom’s solutions help our customers transform some of that housing wealth into real purchasing power, allowing them to live better in retirement.”
Bloom’s inaugural product, the Bloom Reverse Mortgage, removes long application forms and heavy paperwork from the process, enabling customers to unlock their equity from the comfort of their homes.
“Our goal is to transfer the burdens of the application process away from clients. We want our conversations focused on helping them make the right decision for them and their families, not satisfying endless document requests”, said Vishal Gulati, Bloom’s Head of Operations. “We let technology do most of the work.”
The popularity of reverse mortgages has been growing rapidly in Canada as homeowners begin to realise how much wealth they have built up in their homes, and financial advisors across the country begin to recognize home equity as part of their clients’ retirement portfolios. Clients are accessing some this new found wealth for things like home renovations, paying off existing mortgages and other debts, and providing living inheritances to their loved ones.
“We’re excited to begin working with BC homeowners, as well as with our mortgage broker and financial planning partners in the province, as home equity release becomes more and more central to clients’ retirement plans”, added McCabe.