There’s a new reverse mortgage provider in town.
Bloom Finance Company rolled out its reverse mortgage product for Ontario homeowners aged 55+ this week, with plans to expand to other provinces across the country soon. This follows a soft launch in select markets in the province this summer.
Up until now, there have been two dominant reverse mortgage providers in Canada, HomeEquity Bank and Equitable Bank. Both have enjoyed incredible growth in the reverse mortgage space in recent years as a growing number of seniors turn to their home equity to support them in their retirement years, particularly as home values have skyrocketed.
Ben McCabe, Founder of Bloom Financial
“Canadians over 55 have more than $1 trillion of wealth built up in their homes, but many are retiring without enough savings to maintain their standard of living throughout their full retirement,” said Bloom founder Ben McCabe.
Bloom, which first launched a limited rollout of its Bloom Reverse Mortgage earlier in the summer, is the first fintech entrant to the Canadian reverse mortgage market.
“As we anticipated, there is no shortage of demand for this product and our applicant volume is growing daily,” McCabe told CMT.
The demand isn’t surprising given the immense growth in reverse mortgages over the past decade. In 2011, there was just $898.5 billion worth of reverse mortgage debt in Canada. That’s soared more than 367% to over $4.4 billion as of 2020.
“Given what has happened with home prices, the growing retired population in Canada, and Canadians’ increasing acceptance of this product as a powerful tool to support quality of life in retirement, we think that trend is going to continue to accelerate,” McCabe added.
What Bloom brings to the market
As a key differentiator, Bloom is the only non-bank provider of reverse mortgages in Canada, McCabe notes. They’re also a fintech company with a focus on revolutionizing how home equity is unlocked.
“We think the process of accessing equity in the home should be as simple and comfortable as withdrawing funds from any other retirement wealth account,” McCabe told us.
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