The Vancouver Sun
Page: D5
Section: BusinessBC

Invis Inc., Canada's leading independent mortgage brokerage, has been acquired for an undisclosed sum by HSBC Financial Corp., a sister company of Vancouver-based HSBC Bank Canada.

The deal acknowledges the maturing of the mortgage brokerage market in Canada, Invis president and CEO Andrew Moor said in a telephone interview Monday.

"If anybody had any doubts before that we are mainstream, I think those doubts should be erased by this transaction. Now one of the world's largest banks recognizes that the best way to get a mortgage in Canada is to use a mortgage broker."

HSBC Financial, formerly known as Household Finance, is part of London-based banking giant HSBC Group, along with HSBC Bank Canada. The Vancouver-based bank says it will not be directly affected by the deal and will continue to offer mortgages through its branch network and mortgage brokers.

Invis boasts 550 brokers across Canada, including about 120 in B.C., where it claims about 9-10 per cent of the total mortgage market, more than some banks.

Across Canada, it negotiated mortgages worth more than $4.5 billion on behalf of home buyers in 2004 and has written a total of $15 billion in mortgages since the company was formed in 2000. Moor estimates that about 28 per cent of all Canadian mortgages are handled by brokers, a doubling of the industry's market share since 1999, but still well behind Australia, the U.K. and the U.S. where brokers handle more than 50 per cent of all mortgages.

In a release Monday, HSBC Financial announced that it has acquired all the ordinary share capital of Invis and, subject to regulatory approval, it has the right to acquire the outstanding voting preference shares at par.

"We are impressed with the outstanding people at Invis and the dramatic growth they have achieved by providing great customer service," said Pat Burke, president and CEO of Toronto-based HSBC Financial.

"Our goal will be to nurture the entrepreneurial energy of Invis and provide additional support where we can to enhance the value to the customer."

Moor said the primary benefit of the deal for Invis is stronger capital backing to ensure continued growth.

"We have built our business by doing what is right for our customers and that won't change," he said. "We will continue to develop our expertise and to be relentless about finding the best mortgages for our customers."

For Public Relations needs:
Steven Moyes, Corporate Communications
604-879-0228

For media comments and inquiries, please contact:

Steven Moyes
604-879-0228
E: Steven Moyes