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A Western Australia-based fintech specialising in finance for borrowers aged over 55 has brought in administrators and is seeking new capital after its financing was withdrawn.
Specialist lender Boomer Home Loans, named in reference to its target age demographic (Baby Boomers; those born in the post-WWII baby boom of the 1950s and 1960s), had been ramping up to launch its reverse mortgage offering and other products for borrowers over the age of 55 this year.
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However, it has now brought in administrators after the withdrawal of planned financing from an institutional funder, which had reportedly been “in very advanced negotiations with Boomer for the past eight months”.
As such, Richard Tucker and Kate Conneely of KordaMentha have been appointed as voluntary administrators and are now seeking “an alternative capital partner”.
Mr Tucker commented: “There are excellent growth prospects for Boomer, given the demographic trends in Australia. The company has received significant interest in its products since launching them to market in May.
“Boomer is a distinctive brand that offers a niche service other lenders are unable to bring. Given the amount of capital in the global markets, we believe Boomer will provide an attractive platform for capital to find a home in a tier 1 jurisdiction with tier 1 capital.”
The fintech lender has not issued a statement regarding the calling in of administrators.
Background to Boomer Home Loans
The fintech was first established in 2020 by two former directors of financial services company Smooth Retirement Group, Scott Phillips (now Boomer Home Loans chief executive) and Jacqui Schofield (Boomer Home Loans executive director).
The lender aimed to “address the financial challenges facing millions of older Australians across the nation”, particularly those struggling to repay mortgage debt, refinance to a lower rate, or wanting to top up income in retirement.
It was in the process of finalising terms with a “large pension fund” in relation to debt funding for its reverse mortgage loan book earlier this year.
It had raised more than $13 million, with investors including former BNK Bank CEO Simon Lyons (who sits on the board of Boomer Australia Limited), property management fintech entrepreneur Jindou Lee from HappyCo, and former Fortescue Metals Group chief financial officer Stephen Pearce.
As well as this, it had undertaken a Series B round to raise a further $4.3 million before launching into market.
Boomer Home Loans was expected to launch into the broker and aggregator market this month, under the leadership of Wade Westphal-Groves, Boomer Home Loans’ head of third party.
Speaking in March of this year, CEO Mr Phillips commented: “We know that mortgage brokers are trusted by millions of older Australians, writing two-thirds of all residential mortgages across the country.
“We are investing in developing the right service for the broker and aggregator community as part of our go-to-market strategy.
“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.”
[Related: Over-55s home loan lender set to launch]
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