In a statement released Monday, Heritage Financial Group Ltd. announced it has acquired a 50 per cent stake in Verico Boomerang Financial Inc., a Calgary-based mortgage brokerage firm.
"With the Canadian government tightening mortgage rules, Canadians need options, and more importantly they need to have various lenders compete for their business," Chris Cabel, chief executive officer of Boomerang Financial, said in the statement. "We specialize in presenting clients with efficient financing solutions, and look forward to working with the HFGL Group of companies."
The acquisition allows Heritage Financial -- RESP provider -- to expand into the Canadian mortgage industry and add a wider range of financial products and services to its repertoire.
"We are excited to partner with HFGL," Wayne Kainu, president of Boomerang Financial, said in the statement. "This transaction provides significant and immediate value for both our referral sources and customers as it gives us the ability to strengthen our services and processing. In addition, we can now implement volume-based discounting models for mortgage rates, which we believe is a very enticing feature of the products."
According to the release, the acquisition will open up more mortgage opportunities for Canadians.
"More Canadian families will be able to take full advantage of the competitive mortgage product that Boomerang Financial has to offer," Scott McIndless, president and Chief Executive Officer of Heritage Financial Group Ltd. said. "The acquisition is also expected to result in greater efficiencies and most importantly, a wider range of high quality financial products and services for our clients."