Bloom has announced the launch of its home equity release platform for 55+ homeowners across Alberta.
The Canadian fintech startup looks to simplify the process of accessing home equity through a reverse mortgage, enhancing Canadians’ financial flexibility in retirement.
The expansion into Alberta builds on Bloom’s successful launch in Ontario in 2021 and British Columbia in 2022.
Home equity release, also known as a reverse mortgage, is a unique financial product available to 55+ Canadian homeowners, enabling them to access up to 55% of their home value in tax-free funds.
No regular principal or interest payments are required, with interest simply accruing over time, and the balance only payable when a borrower moves out, sells their home, or passes away.
“We’re thrilled to begin offering our Bloom reverse mortgage solutions to homeowners and mortgage brokers in Alberta. We see tremendous potential for equity release in Alberta, which should see home values continue to climb as more and more Canadians choose the province to call home”, said Ben McCabe, CEO of Bloom.
McCabe also noted that Alberta saw the highest net interprovincial migration of all Canadian provinces in 2022.
Bloom is the first fintech entrant to the Canadian reverse mortgage market, built with a goal to make home equity access simple and frictionless. The company’s inaugural product, the Bloom Reverse Mortgage, removes long application forms and heavy paperwork from the process, enabling customers to unlock their equity from the comfort of their homes.
The popularity of reverse mortgages has been growing rapidly in Canada as homeowners begin to realise how much wealth they have built up in their homes, and financial advisors across the country begin to recognize home equity as part of their clients’ retirement portfolios. These trends have been accelerated in recent years by the increasing costs of living.
“Bloom’s solutions help our customers transform some of their housing wealth into real purchasing power, making their lives a little easier in retirement.” added McCabe.
Earlier this year Bloom closed a $7 million Series A financing round led by SixThirty Ventures.