TORONTO--(BUSINESS WIRE)--Today, Bloom Finance Company Ltd. (“Bloom”) is excited to introduce an innovative payment card designed for Canadian homeowners aged 55 and above, enabling them to access their home equity in micro-sized, responsible increments each month. By enabling micro equity access on an as-needed basis, this first-of-its-kind card provides a sustainable solution to homeowners navigating financial challenges in retirement.
The Bloom Home Equity Prepaid Mastercard addresses the pressing need for innovation within the financial landscape for Canadians 55+, particularly in meeting the unique requirements of Canadian retirees who own their homes. A recent report conducted by Bloom among members of the Angus Reid Forum revealed that 67 per cent of Canadian homeowners over the age of 55 are concerned that their savings may not suffice to sustain their quality of life through retirement due to the increasing cost of living across Canada.
With three-quarters of Canadian retirees owning their homes, Bloom aims to empower this demographic to enhance their quality of life and withstand financial adversities triggered by inflation and the escalating cost of living.
Additional findings from the survey include:
- Nearly half (46 per cent) of Canadian homeowners over the age of 55 are considering taking on part-time work during retirement to combat inflation and the rising cost of living.
- Only 29 per cent of Canadian homeowners above 55 years of age are considering downsizing or alternative living situations to access their home equity earlier than expected.
- 6-out-of-10 (59%) Canadian homeowners aged 55 and above agreed that accessing micro-amounts of their home’s equity would significantly help maintain their desired living standard.
The Bloom Home Equity Prepaid Mastercard functions like any other payment card at the point of sale, in-store or online. However, with no required monthly payments, it acts as an addition to clients’ spending power. Leveraging Bloom’s unique home equity release structure, the card comes with no monthly bill, and amounts spent by clients do not need to be repaid until they pass away or choose to sell their home in the future. Bloom works with clients to establish sustainable monthly spending limits, promoting responsible home equity access over the long term.
"The launch of our Bloom Home Equity Prepaid Mastercard underscores our commitment to providing innovative financial solutions for Canadian retirees," said Ben McCabe, Founder & CEO of Bloom. "In today's economic climate, older homeowners are facing unprecedented challenges. Our mission is to provide them with a responsible and sustainable means of accessing the wealth they’ve accumulated, to live more comfortably in their latter decades of life.”
"Our clients have been clear that the ability to unlock their home equity when, where and in the quantities they need, is important to them,” explains Hasan Nizami, Head of Product at Bloom. “We’re proud to have developed a product that enables just that, assisting a demographic that historically lacked financial services innovation in Canada and globally.”
Bloom is pleased to have partnered with embedded payments firm Berkeley Payment Solutions Inc. on this innovative fintech-backed solution for Canadian homeowners. CEO of Berkeley, Lawrence Tepperman added, “Bloom is doing something really special in Canada and we are honoured to be a part of it.”
The launch of the Bloom Home Equity Prepaid Mastercard marks a significant milestone in Bloom’s mission to revolutionize the market for financial solutions for older Canadians. Available initially in Ontario, Alberta, and British Columbia, the Bloom Home Equity Prepaid Mastercard will redefine how retirees manage their finances in the face of economic uncertainty.
For more information on the Bloom Home Equity Prepaid Mastercard and Bloom, visit www.bloomcard.ca.
About Bloom Finance Ltd.
Bloom is a leading Canadian fintech company dedicated to assisting homeowners aged 55 and above in accessing the wealth accumulated in their homes to enjoy more comfortable retirements. Through the integration of cutting-edge technology and innovative product delivery, the company is reshaping home equity access to be adaptable, enduring, and user-friendly. Bloom's overarching mission is to alleviate financial stress among retired homeowners, enabling them to relish the golden years of their lives. Licensed in ON:13338, BC:MBX600455 and AB. Discover more at www.bloomfin.ca.
Methodology
These are the findings of a survey conducted by Bloom Finance Ltd. from February 16 to February 20, 2024 among 1008 Canadian homeowners over the age of 55 who are members of the Angus Reid Forum. The survey was conducted in English and French. For comparison purposes only, a probability sample of this size would carry a margin of error of +/- 3.1 percentage points at a 95% confidence level.
