TORONTO, June 10 /CNW/ - Home Equity Income Trust (HOMEQ) (TSX: HEQ.UN)
today announced that its subsidiary, Canadian Home Income Plan Corporation
(CHIP), has entered into an agreement with Multi-Prêts, Quebec's leading
mortgage broker, which will extend CHIP's home equity lending solution to
Multi-Prêts senior customers over 60 years of age.
The new partnership with Multi-Prêts will further CHIP's reach to seniors
in Quebec through the mortgage broker's well established branch network. The
expansion of CHIP's referral network comes on the heels of a major expansion
of CHIP's sales and relationship management team, as well as establishment of
a new regional head office in Montreal.
"Our agreement with Canadian Home Income Plan will enable us to provide
clients who need more income in retirement with a viable option that
supplements their cash flow and allows them to enjoy life on their terms,"
said Pierre Martel, AMP, President & CEO, Multi-Prêts hypothèques. "As the
largest mortgage broker in Quebec, Multi-Prêts is a trusted source for a
variety of mortgage-related products. We're excited to partner with CHIP and
now be able to offer customers over 60 with a product solution specifically
designed to meet their needs."
With a CHIP Home Income Plan, seniors gain long-term financial security
while still maintaining ownership of their home with no regular or monthly
payments required until the home is sold or if the homeowners move out.
"By working in association with a mortgage broker, such as Multi-Prêts,
seniors are able to see the application of a home equity solution in many
different ways," said Eric Bisaillon, General Manager, Quebec and Atlantic
Provinces, CHIP Home Income Plan. "Seniors can use the extra funds toward home
maintenance, paying bills and expenses associated with owning the home, or
realizing their retirement lifestyle goals. The CHIP solution is flexible, so
it can easily fit into a personalized financial plan."
"The agreement with Multi-Prêts is a very important one for us as it
further strengthens our position in Quebec," added Mr. Bisaillon. "We
recognize the value of this partnership given the dynamic growth in the Quebec
marketplace, and we believe it will add to the options Multi-Prêts' mortgage
brokers can present to senior clients, and help them to effectively broaden
their client base."
Forward Looking Statements
Home Equity Income Trust ("HOMEQ" or the "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 March 31, 2008, the portfolio
generating cash returns to the Trust comprised approximately 6,800 reverse
mortgages with an accrued value of $738 million, secured by residential
properties across Canada worth approximately of $2.1 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
For further information:
For further information: Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679, firstname.lastname@example.org; or Scott Cameron, Vice
President, Finance, (416) 413-6605, email@example.com