First dedicated over 55s home loan lender launches

by Jayden Fennell10 Mar 2022

Launching next month, new fintech home loan provider Boomer Home Loans, are designed to be Australia’s first specialist home loan lender for over 55s.

The company is based in Perth and will be offered to customers nationally. Boomer Home Loans addresses the financial challenges faced by many older Australians by providing fast, flexible home loan services.

The new start-up has raised more than $13 million of capital ahead of its launch with 30 people already recruited and positions available across Australia.

Boomer Home Loans have a vision of 60 – 70% of loans being offered by brokers with the balance of customers directly dealing with the loan provider.

Co-founder CEO Scott Phillips has 30 year’s of finance experience and said the gap in financial services for this demographic is a significant national problem.

“I am excited and proud to bring this product to market. Millions of Australians enter retirement with the equity in their home being their most valuable asset and not enough in savings or super to support another 40 years of living costs, while many also commence retirement still paying off their home loan. While the recent surge in Australian house prices has pushed household wealth to record highs, many older Australians are struggling to make ends meet’’ said Phillips.

Phillips understands a lack of super or savings results in older Australian’s selling their family homes to access capital they need for the next stage of life.

“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. Boomer is Australia’s first over-55s specialist home loans provider and is here to change later-life lending for good’’ adds Phillips.

READ MORE: How much do Australians need to retire?

Australians over the age of 55 face home loan lending challenges particularly around re-financing and obtaining home loans close to and post retirement.

For most retirees, the pension is still their main source of income with 1 in 4 women and 1 in 8 men reaching the end of their employment with no super.

Meanwhile, over 2 million Australian households led by over 50s currently owe over $600 billion on their home loans, with 1 in 3 over 55s paying interest rates on their home loans of more than 4%.

‘’We envisage a lot of our customers will be refinancing existing home loans. Once we are up and running, over 55s can visit their broker and switching their home loan to Boomer will be easy. We are a modern fintech company dealing with digital settlements and working within a rapid time frame. Our service is about giving this demographic more choices’’ he said.

Better lending options for older Australians has been recognised by the federal government which recently relaunched the Home Equity Access Scheme - Services Australia which enables older Australians to draw a fortnightly payment using the equity in their home.

Boomer Home Loans has created a national advertising campaign to increase workforce in preparation for launch, along with signing major sponsorship deals with the AFL Fremantle Dockers and NRL West Tigers for the 2022 and 2023 seasons.

To find out more, visit their website.