Home Equity Income Trust Announces Compliance With Global Liquidity Standards



    TORONTO, Jan. 2 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) (the
"Trust" or "HOMEQ"), today announced that its subsidiary CHIP Mortgage Trust,
has amended its senior liquidity agreement in order to achieve the Global
Liquidity Standard as defined recently by DBRS Limited ("DBRS"). The Trust's
commercial paper program is supported by a $120 million liquidity support
arrangement provided by a syndicate of Schedule 1 Canadian chartered banks.
From time to time, in accordance with various business circumstances, the
Trust may choose to utilize this liquidity line to fund maturing commercial
paper. As of December 31, 2007 $78 million of commercial paper was
outstanding.
    "We appreciate the guidance provided by DBRS and our banking partners in
helping us achieve the Global Liquidity Standard which is vital to our ongoing
business success," said Senior Vice President and CFO, Gary Krikler.
    Further information on HOMEQ's financial performance and its investing
and funding activities, including the Trust's September 30, 2007 Interim
Financial Statements and Management Discussion and Analysis, can be found on
the Trust's web site at www.homeq.ca and on the SEDAR website at
www.sedar.com.

    Forward Looking Statements

    Home Equity Income Trust from time to time makes written and verbal
forward-looking statements about business objectives, operations, performance,
and financial condition, including, in particular, the forecast of cash
distributions and the likelihood of HOMEQ's success in developing and
expanding its business. These may be included in the Annual Reports,
regulatory filings, reports to unitholders, press releases, Trust
presentations and other communications. These forward-looking statements are
based upon a number of assumptions and estimates that are inherently subject
to significant uncertainties and contingencies, many of which are beyond the
control of HOMEQ. Actual results may differ materially from those expressed or
implied by such forward-looking statements. HOMEQ does not undertake to update
any forward-looking statement, whether written or verbal, that may be made
from time to time.

    About Home Equity Income Trust

    Home Equity Income Trust provides unitholders with stable monthly cash
distributions from a portfolio of reverse mortgages originated by its wholly
owned subsidiary Canadian Home Income Plan Corporation ("CHIP"). The Trust's
units are rated SR-2 by Standard and Poor's, which assigns this rating to
funds that have "a very high level of cash distribution stability relative to
other rated Canadian income funds." As of September 30, 2007, the portfolio
generating cash returns to the Trust comprised approximately 6,600 reverse
mortgages with an accrued value of $678.4 million, secured by residential
properties across Canada worth approximately $1.9 billion. CHIP (www.chip.ca),
has been the main underwriter of reverse mortgages in Canada since pioneering
the concept in 1986.
    HOMEQ's units trade on the Toronto Stock Exchange under the symbol
HEQ.UN. Additional information on HOMEQ, including annual and quarterly
reports and the Trust's distribution reinvestment plan, can be viewed at
www.homeq.ca.

    %SEDAR: 00018040E




For further information:

For further information: Steven Ranson, President and Chief Executive
Officer, (416) 413-4663 or Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679

Organization Profile

HOME EQUITY INCOME TRUST

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