Home Equity Income Trust Announces the Filing of Equity and Medium Term Note Short Form Base Shelf Prospectuses



    TORONTO, Nov. 23 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) ("HOMEQ"
or the "Trust") today announced that it has filed a final short form base
shelf prospectus with the securities regulatory authorities in each of the
provinces of Canada. Under the base shelf prospectus, the Trust may issue up
to a total of $200 million of units of the Trust, subscription receipts and
other securities convertible into or exchangeable for Units, from time to time
over the next 25 months. The specific terms and use of proceeds of any units
that the Trust may issue will be provided in a supplement to the base shelf
prospectus at the time of any offerings.
    The Trust also announced that its wholly owned subsidiary, CHIP Mortgage
Trust, has filed a final short form base shelf prospectus with the securities
regulatory authorities in each of the provinces of Canada. Under the base
shelf prospectus, CHIP Mortgage Trust may issue up to a total of $750 million
of medium term notes from time to time over the next 25 months. The notes will
be unconditionally guaranteed by Home Equity Income Trust. The specific terms
and use of proceeds of any notes that CHIP Mortgage Trust may issue will be
provided in a supplement to the base shelf prospectus at the time of any
offerings.
    "We are experiencing encouraging growth in our portfolio of reverse
mortgages, and as our business continues to grow we will require access to
capital. Maintaining appropriate leverage is crucial to our financial
performance and the shelf prospectus system allows us to cost effectively
raise equity and debt in measured amounts", said Gary Krikler, Senior Vice
President and Chief Financial Officer of the Trust.

    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 of $1.9 billion. CHIP
(www.chip.ca), has been the main underwriter of reverse mortgages in Canada
since pioneering the concept in 1986.
    The Trust'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: Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679, gkrikler@homeq.ca; or Scott Cameron, Vice
President, Finance, (416) 413-6605, scameron@homeq.ca

Organization Profile

HOME EQUITY INCOME TRUST

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