News

TORONTO, Sept. 3, 2014 /CNW/ - Equitable Bank, the wholly owned subsidiary of Equitable Group Inc. (TSX: EQB, and EQB.PR.A and EQB.PR.C) today announced the launch of its new Evolution Suite™ of residential prime mortgage products that will be initially launched in the GTA, then progressively rolled out across Ontario followed by the rest of Canada.

For new borrowers, Equitable Bank will, over time, become a recognized alternative to traditional players in the prime space.  And for existing borrowers whose mortgage needs have changed it will mean the ability to stay with an organization recognized for outstanding service. The new EQB Evolution Suite™ is designed to provide financial solutions that will appeal to a wide range of borrowers who may be salaried, salaried with commission as well as self-employed individuals looking to purchase or refinance.  The EQB Evolution Suite also includes:

• investure™ mortgage for investors acquiring or refinancing rental properties
• welcome2CAN™ mortgage for newcomers to Canada who are buying a home
• staycation™ mortgage for those purchasing or refinancing vacation or second properties

"The new Evolution Suite of prime residential products combined with the Bank's alternative mortgages, will provide enhanced choices for our mortgage broker partners and their clients, " said Andrew Moor, President and Chief Executive Officer. "As a branchless Schedule 1 Bank, Equitable is committed to the broker channel. This launch is an opportunity to greatly extend our relationships with the mortgage broker and homeowner communities in Canada as a more comprehensive financial solutions provider."

Equitable Bank's prime mortgage business is led by Martin Beaudry, who was appointed Director, Residential Mortgage Underwriting earlier this year.  Prior to joining Equitable, Martin held the position of Vice President, Retail Lending at ING Direct Canada where he spent 14 years.

Under Martin's leadership, the prime lending underwriting team is comprised of experienced individuals from the mortgage industry: Khursheed Ahmed, Manager, Residential Prime Mortgage Underwriting; with Cailin Philips and Ronald Fernandes in the roles of Residential Mortgage Underwriters; and Marsha Reynolds supporting the group as Residential Mortgage Officer.

"Equitable has offered exceptional service for over 40 years as an alternative lender, and now we're ready to build on this track record in the prime market," said Mr. Beaudry. "Central to our growth plan is to provide mortgage brokers with the attentive, professional service and responsive support they have come to expect from Equitable Bank. We have done a substantial amount of preparatory work and chosen to launch in the GTA first. This will allow us to perfect our offering before introducing EQB Evolution Suite™ more broadly in Canada."

This initiative is the result of management's interpretation of the long-term changes to the structure of the residential mortgage market as a result of policy changes at the federal level and at CMHC. In the long run, the development of Equitable Bank's prime lending business will create a foundation for meaningful long-term strategic and financial value creation. Its impact at an earnings per share level is expected to be immaterial in 2014.

More information about the Equitable Bank EQB Evolution Suite™ is available at equitablebank.ca.

About Equitable Group Inc.

Equitable Group Inc. is a growing Canadian financial services business that serves the market through its wholly-owned subsidiary, Equitable Bank. Equitable Bank is a federally regulated Schedule I Bank with total assets of approximately $13 billion, with more than 300 employees and proven capabilities in lending and deposit-taking. The Company's integrated operations are organized according to specialty. Within Equitable Bank's Core Lending business, Single Family Lending Services funds mortgages for owner-occupied and investment properties across Canada while Commercial Lending Services provides mortgages on a variety of commercial properties on a national basis. Equitable's Securitization Financing business originates and securitizes insured residential mortgages under the Canada Mortgage and Housing Corporation administered National Housing Act. Equitable Bank provides savings products including Guaranteed Investment Certificates and savings accounts. Equitable Bank was founded in 1970 as The Equitable Trust Company. For more information, visit the Company's website at www.equitablebank.ca and click on Investor Relations.

Cautionary NOTE Regarding FORWARD-LOOKING STATEMENTS

Statements made by the Company in the sections of this news release including those entitled "Second Quarter Highlights", "Operating Highlights", "Capital", "Strategic Update", "Business Outlook", in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws ("forward-looking statements").  These statements include, but are not limited to, statements about the Company's objectives, strategies and initiatives, financial result expectations and other statements made herein, whether with respect to the Company's businesses or the Canadian economy.  Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may" , "could", "would", "might" or "will be taken", "occur" or "be achieved."  Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and rates of default, and competition as well as those factors discussed under the heading "Risk Management" in the Management's Discussion and Analysis and in the Company's documents filed on SEDAR at www.sedar.com. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting the Company and the Canadian economy.  Although the Company believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.  Certain material assumptions are applied by the Company in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its mortgage business at current levels, a continuation of the current level of economic uncertainty that affects real estate market conditions, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements.  The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

SOURCE Equitable Group Inc.