Cervus Financial Group Inc.
TSX : CFG

Cervus Financial Group Inc.

March 21, 2006 08:30 ET

Cervus Financial Group Inc. Announces Eastern Canada Expansion and Maintains Strong Market Presence

TORONTO, ONTARIO--(CCNMatthews - March 21, 2006) -

"Cervus Ranks 12th out of 47 Broker Lenders in Canada"

Cervus Financial Group Inc. ("Cervus"), (TSX:CFG), announced today the expansion of its Montreal office to further penetrate the mortgage broker market in Eastern Canada. Expanding within one of Canada's major markets is an integral component of Cervus' overall strategy in Canada which continues to focus on expanding its strong presence in the Canadian Broker Lender market. With this added presence in Montreal, Cervus intends to immediately increase its share of the mortgage broker market in the province of Quebec. "We have been growing rapidly since our entry into eastern Canada in March 2005; expanding our Montreal team allows us to maintain our industry-leading excellence in customer service and better serve our increasing customer base", states Robert D'Abate, Cervus' Regional Director of Eastern Canada.

"Despite an increasingly competitive broker lender landscape, Cervus continues to maintain a strong presence in the Canadian mortgage broker market" highlighted Grant MacKenzie Cervus' COO, he continued by stating that "Despite the competitive landscape, Cervus continues to attract mortgage brokers to its unique "Customer for Life" model. Our company recently surpassed a significant milestone of exceeding $1 billion in assets under administration and we continue to maintain a very strong presence recently ranking 12 out of 47 broker lenders in the monthly Filogix Canadian Mortgage Broker Market Report ™". The Filogix Canadian Mortgage Broker Market Report ™ reports all mortgage originations processed through the Filogix technology platform utilized by the majority of Canadian mortgage brokers.

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
    IR@cervus.com
    or
    Cervus Financial Group Inc.
    Grant MacKenzie
    COO
    (416) 861-1315 ext 224
    gmackenzie@cervus.com