Boomer Home Loans collapses

Perth-based Boomer Home Loans, which officially launched early this year, is seeking recapitalisation following the withdrawal of planned financing from an institutional funder.

KordaMentha partner Richard Tucker, who was appointed voluntary administrator to the Boomer Home Loans Group along with another partner Kate Conneely, said the institutional funder had been in “very advanced negotiations” with the fintech for the past eight months.

“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," Mr Tucker said.

Mr Tucker said the priority at the moment is to open the table for “urgent expressions of interest” for the recapitalisation of the group.

“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."

Boomer was set to disrupt the traditional lending market by becoming the first Australian lender to specialise in home loans for over-55s.

Prior to its launch in April, Boomer said it has raised over $13m in capital from investors comprising of property management fintech entrepreneur Jindou Lee from HappyCo, former Fortescue Metals Group Chief Financial Officer Stephen Pearce, and former BNK Bank CEO Simon Lyons.

Boomer aims to address the challenges faced by retiring Australians — it complements the recently relaunched Home Equity Access Scheme by the federal government, which enables older Australians to draw a fortnightly payment using the equity in their home.

Boomer Home Loans CEO Scott Phillips said the gap in financial services for people aged over 55 was a significant national problem.

“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,” he said in a statement earlier this year.

“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.”

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