KordaMentha has been appointed voluntary administrators to the Boomer Home Loans Group.
Boomer was established in 2020 as the first specialist non-bank lender for over 55s in Australia, offering home loan products to this specific market.
The Perth-based company then launched reverse mortgages in May 2022, raising more than $13m in capital and recruiting 30 people to its staff. Boomer had also signed major sponsorship deals with the Fremantle Dockers AFL club and the Wests Tigers NRL club for the 2022 and 2023 seasons.
The appointment of Richard Tucker and Kate Conneely of KordaMentha as voluntary administrators of Boomer on Monday followed the withdrawal of planned financing from an institutional funder which had been in very advanced negotiations with Boomer for the past eight months.
As a result of the strong relationship with the financier and in anticipation of final approvals, Boomer had scaled its business and team to assist its clients.
Read more: First dedicated over 55s home loan lender launches
Boomer has customers around the country.
“T. are excellent growth prospects for Boomer given the demographic trends in Australia,” Tucker said.
“The company has received significant interest in its products since launching them to market in May.”
Tucker said Boomer was a distinct brand that offered a niche service other lenders were unable to bring.
Read more: How are Australians coping financially?
“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 one jurisdiction with tier one capital,” he said.
The administrators will shortly begin seeking urgent expressions of interest for the recapitalisation of Boomer Home Loans Group.
In an interview with Australian Broker back in March, Boomer co-founder and CEO Scott Phillips (pictured above) said the gap in financial services for the over 55s was a significant national problem and he was excited to bring the company’s products to market.
“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,” Phillips said.
“While the recent surge in Australian house prices has pushed household wealth to record highs, many older Australians are struggling to make ends meet.”