Cervus Financial Group Inc.
TSX : CFG

Cervus Financial Group Inc.

March 23, 2006 08:30 ET

Cervus Announces Expansion of National Broker Network with the Addition of Mortgage Brokerage House Mortgage Intelligence

TORONTO, ONTARIO--(CCNMatthews - March 23, 2006) - Cervus Financial Group Inc. ("Cervus"),(TSX:CFG), announced today that it has signed on national mortgage brokerage house Mortgage Intelligence. Mortgage Intelligence complements Cervus' national business plan and provides the company with an additional national broker channel for its High Ratio and Conventional mortgage products. Cervus currently has offices in Ontario, Quebec, Alberta and British Columbia.

"Cervus is excited about the joining of the Mortgage Intelligence team of highly experienced brokers with our broker family network. The new relationship with Mortgage Intelligence will provide Cervus with an opportunity to gain market share within Ontario, Quebec, Alberta and British Columbia," stated Grant MacKenzie, COO of Cervus.

"We are very pleased with our new relationship with Cervus providing our mortgage consultants and associates the benefits of a compensation program that fosters long term customer relationships and income stability," said Alice Chan, Vice President Projects and Service Delivery, Mortgage Intelligence.

Cervus' "Customer for Life" model continues to attract the mortgage broker community with its unique compensation program. The company's model compensates the broker with a one time origination fee, a trailer fee for each year the mortgage remains with Cervus and a renewal fee upon renewal of the mortgage for another term. The model allows mortgage brokers to build their own book of business and provides the tools and products they need to retain the Customer for Life. This model also promotes long term relationships between mortgage brokers and their customers.

ABOUT MORTGAGE INTELLIGENCE

Mortgage Intelligence Inc., a GMAC company, is the largest and fastest growing mortgage broker in Canada, with more than 900 independent consultants and associates in offices throughout Canada. Mortgage Intelligence consultants help clients make better mortgage decisions for their home, revenue or vacation properties, renewals, home renovations, debt consolidation needs, and specialized mortgage requirements. Mortgage Intelligence has become a leader in introducing innovative mortgage products that cater to niche segments such as the self-employed. The company has funded volumes of $8 billion in fiscal year 2005. For more information, visit: www.mortgageintelligence.ca.

About "Customer for Life"

The Cervus "Customer for Life" model enables the mortgage professional to retain the relationship with the borrower as a customer throughout the life of the mortgage. The compensation model also creates a continued revenue stream in the form of trailer fees, a one time origination fee and a renewal fee every time the customer renews with Cervus. This creates income security for the mortgage professional allowing a long-term relationship to be developed with the borrower. This long-term relationship subsequently gets passed along to the institutional investor of the mortgage security, creating a higher yield long-term investment cash flow stream. The Cervus "Customer for Life" model creates added value relationships for the borrowers, mortgage professionals, institutional investors and for Cervus.

About Cervus

Cervus Financial Group Inc. is a Canadian financial services company created as an industry initiative with leading mortgage broker companies and fixed income investment banks to become a high-yield residential mortgage producer and the largest mortgage broker lender of conventional insured and insurable mortgages in Canada.

Forward-looking (safe harbour) statement

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes," plans," "expects" or "intends" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Additional information about Cervus is available on SEDAR (www.sedar.com).

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Cervus Financial Group Inc.
    Tracey McLaughlin
    Investor Relations
    (416) 861-1315 ext 262
    (416) 861-8484 (FAX)
    IR@cervus.com
    or
    Cervus Financial Group Inc.
    Grant MacKenzie
    COO
    (416) 861-1315 ext 224
    (416) 861-8484 (FAX)
    gmackenzie@cervus.com
    www.cervus.com