A new fintech startup aimed at the Over-55s market is set to launch next month, and has already raised more than $13 million in capital.
Boomer Home Loans, headquartered in Perth, says it is “focused on addressing residential lending challenges for older Australians” and bills itself as Australia’s first specialist home loan lender for people aged 55 and up.
Data from surveys by Boomer and Illion shows that 2.16 million households owned by over-55s collectively owe more than $600 billion on home loans, while more than a third of over-55 borrowers are paying interest of more than 4% on their loans.
According to Boomer Home Loans CEO Scott Phillips (pictured), the startup aims to address the “significant national problem” of the gap in financial services for people aged over 55, as many enter retirement still paying off their home loans and with not enough money to support themselves.
“While the recent surge in Australian house prices has pushed household wealth to record highs, many older Australians are struggling to make ends meet. A lack of super or savings means many are scraping by week to week, while unexpected large expenses often force older Australians to sell their family home to access the capital they need.
“We believe that Australians over 55 deserve a better deal. They deserve a home loan lender that not only understands their unique needs but will help them plan and manage their finances in the lead-up to, and throughout, retirement,” he said.
The lender is hoping to raise another $4.3 million in its Round B of funding.
