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MortgageBrokers.com (OTCBB: MBKR)
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MortgageBrokers.Com (OTCBB: MBKR) acts as mortgage brokerage firm serving the lending needs of real estate professionals, builders, and individual homebuyers across Canada. The company has access to a full range of mortgage sources, and is dedicated to finding the right mortgage with the best rates, terms and costs to meet each client's unique needs.

In addition, MBKR is Canada's first publicly traded independent mortgage brokerage company with a universal domain name that provides expansion opportunity to markets outside Canada and the USA.







A Business model that can grow in a high interest rate environment


MBKR's business idea is aiming to combine small and medium sized enterprise brokerages into a scalable, operating entity, which will better compete under one recognizable brand and improve the economic performance of the combined companies. MBKR's business model offers a viable opportunity to SME brokers to survive under new conditions, by allowing them continue owning their own business while taking advantage of working under one recognizable brand; taking advantage of centralized services such




as payroll and accounting, compliance, marketing, technology, human resources and recruitment, lead generation; improving access to the customer through strategic alliance partnerships; leveraging MBKR's national teams origination with lenders to establish higher referral fees from lenders; and, as creating the ability to earn ownership in a publicly-traded entity for their eventual career exit strategy.

Technology advantages offered by its proprietary eXimius platform provide cost savings opportunities

MBKR's unique back office technology platform eXimius™ will allow to reduce operating costs, improve communication to mortgage stakeholders, provide the basis for back-end shared services technology infrastructure and facilitate knowledge transfer among loan originators. The Company expects that development of this system will commence in Q4FY06 and be completed near the end of Q2FY07. The early planning and prototype development for eXimius took place in 2005.

Growth story that confirms the industry acceptance of MBKR's business model

Strong growth in sales force made MBKR to report an average of 219% growth in revenue, quarter over quarter, since Q2, 2005, signaling that the Company's business model has been well received by the mortgage agent market place. In addition, compared to the Q1FY06, mortgage volumes have increase 248% and the Company expects to sustain this level of growth through the Q4FY06. By the end of 2006, MBKR had 163 licensed mortgage agents in Canada having an estimated $1.5 billion in aggregated annual mortgage origination books of business.

In addition, the rapid growth of operations allows MBKR to benefit from operating leverage effect and increases chances to breakeven already in 2007.

Optimistic Management outlook

On January 8, 2006, MBKR management announced that it projects gross revenue for 2006 to be between $3.8 million and $4.0 million. For 2007, the Company expects revenues to be between $24 million and $30 million and to achieve a positive EBITDA for the year, assuming that the existing services will perform along historical growth curves.

Moreover, the Company expects is national sales agency network to originate an estimated $600 million in aggregate funded mortgage volume in FY2006 and to report a $3.5 billion in funded mortgage origination volume in FY 2007.

Strong and experienced management team

CEO Mr. Haditaghi has been working in the mortgage industry in Canada, since 2000, with some of the top financial institutions and developing solid relationships with leading private and institutional Mortgage Brokers and lenders. Using his experience and relationships, Mr. Haditaghi has built a qualified, industry-known and respected team of senior managers with many years of experience in the mortgage business in Canada, U.S. and Australia.

Strategic partnership alliances with recognizable real-estate firms

During the 2006 MBKR has finalized strategic partnership alliances with important real-estate firms:




RE/MAX Alliance - In January 2006, MBKR have entered into a10-year license agreement with RE/MAX Ontario-Atlantic Canada Inc., which requests MBKR to provide mortgage origination solutions to RE/MAX, its franchisees and salespersons. In these Canadian regions, RE/MAX Ontario-Atlantic has licensed over 7000 Sales Associates and closed over 150,000 real estate transactions in 2005. RE/MAX has been the No. 1 residential real estate network in Canada since 1987 and is a leading industry force in the United States and many other regions. The RE/MAX alliance allowed MBKR to enter into an enormous referral base - $32 billion in real estate transactions conducted by RE/MAX last year.



MaxWell Alliance - BKR has established strong relationships with MaxWell Realty, a family of more than 650 Realtors serving the Province of Alberta. The regional launch of the MaxWell strategic alliance took place in Q3FY06. The first outcomes of the launch have resulted in recognition throughout the MaxWell franchise network of 28 offices, which culminated in a letter of support concerning MBKR's service.



Your Mortgage Team Agreement - In October 2006, MBKR licensed Your Mortgage Team, a group of 13 mortgage originators servicing the Greater Toronto Area - the largest metropolitan city in Canada. The joining of the Your Mortgage Team, a well-respected mortgage broker in Canadian and Australian industry, to MBKR proves the increasing acceptance of promoted business model



Market opportunity


During the first half of this decade existing home sales volumes have risen to their highest levels in history in both Canada and U.S. However, the growth track has reversed in 2006 and, accordingly, The National Association of Realtors and CIMBL forecasted that existing-home sales and housing starts are likely to decrease in 2007 and 2008.


Despite the softening demand for houses, Canada mortgage markets remain exceedingly robust. Rising house prices, booming economy in western Canada and continued high numbers of new housing completions are supporting a 10.5% growth forecast in mortgage credit in 2007. The housing market remains very active overall in historic terms, setting new record levels of dollar volume sales. Moreover, CIMBL reported in a fall 2006 survey that 88% of Canadians are satisfied with the terms of their mortgages, despite interest rate increases over the last year. Benefiting from the growth, new lenders and mortgage insurers have entered the market increasing Canadians' options for mortgage products. As a result, more Canadians are consulting with mortgage brokers (31% in 2006 vs. 25% in 2005, according to CIMBL) whether they are taking out a new mortgage, or renewing or refinancing an existing mortgage.






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