Reverse mortgage tech startup Bloom gets CA$7M funding now

 Reverse mortgage tech startup Bloom gets CA$7M funding now

Image courtesy: Bloom Finance

Bloom Finance Company Ltd., a Canadian innovative reverse mortgage tech startup, has announced CA$7M in new financing. SixThirty Ventures LLC has led this Series A round, to fuel Bloom’s growth and and expansion plans.

Bloom specializes in empowering homeowners aged 55 and above by unlocking up to 55% of their home’s value, completely tax-free. Homeowners continue to reside in their properties without the burden of regular principal and interest payments associated with traditional mortgages. Instead, interest is added to the balance, which becomes due when the homeowner sells the property, moves, or passes away.

By offering this unique reverse mortgage solution, Bloom envisions equity release as an integral part of retirement planning. The company predicts a rise in the popularity of equity release through sustainable equity utilization.

“Four out of five Canadian seniors live with financial insecurity, with income and savings that aren’t sufficient to maintain their pre-retirement living standard. At the same time, the magnitude of home price growth over the past few decades means there is often more than enough household wealth to sustain a comfortable retirement, for most retiring homeowners.”

Ben McCabe, CEO of Bloom Finance

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Reverse mortgage tech startup focuses on helping aged homeowners

With this new funding, Bloom aims to accelerate its investments in innovative products and streamlined processes. It also plans to expand its reach to new geographic locations.

“For an ageing demographic that has generally under-saved, home equity release represents a powerful, supplemental income solution. Bloom’s funding partnerships and rapid growth are proof positive of the market demand. But what caught our attention is Bloom’s values and its positioning. We share the view that home equity release is part of the overall wealth decumulation journey, and it starts with closing a vast, unmet need for income advice.”

Atul Kamra, SixThirty’s Managing Partner & Bloom board director

Since its inception in late 2021, Bloom has experienced remarkable growth. To date, it has provided approximately CA$100 million in financing to homeowners in Ontario and British Columbia, reflecting its commitment to supporting homeowners and their financial goals.

Bloom has been expanding its customer base in the historically bank-dominated reverse mortgage business. The company attributes its success to its laser-like emphasis on utilizing technology to provide the most straightforward and transparent equity access solutions.

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