Home Equity Income Trust Subsidiary Issues Medium Term Notes



    TORONTO, Nov. 29 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) ("HOMEQ"
or the "Trust") today announced that its wholly owned subsidiary, CHIP
Mortgage Trust ("CMT"), has sold $21,889,000 of senior medium term notes (the
"2007-2 Senior Notes") and $20,000,000 of subordinated medium term notes (the
"2007-2B Subordinate Notes") (together the "Notes") to a single purchaser. The
purchase price for the Notes was satisfied by the transfer to CMT of medium
term notes issued by the securitizations which hold pools of HOMEQ reverse
mortgages. The 2007-2 Senior Notes have an adjustable coupon of 1.283% above
the 6-month Treasury bill rate, are rated AAA and will amortize in accordance
with the reverse mortgage repayments of the mortgages held by CHIP Mortgage
Limited Partnership. The 2007-2B Subordinate Notes have a coupon of 7.582%,
are rated BBB, with principal repayable in 18 equal installments after the
Series 2007-2 Senior Notes have been repaid in full. Each tranche is
unconditionally guaranteed by Home Equity Income Trust and is rated by DBRS
Limited.
    On November 29, 2007, CMT is expected to file with the securities
commissions and other similar regulatory authorities in each of the provinces
of Canada, the first and second prospectus supplements to the Short Form Base
Shelf Prospectus ("Prospectus") filed on November 23, 2007. Under the
Prospectus, CMT may issue up to a total of $750 million of medium term notes
from time to time over the 25 months following the filing of the Prospectus.
These Notes are the first issue under the Prospectus.
    HOMEQ, through its subsidiaries, finances its portfolio of reverse
mortgages through a combination of equity and debt including commercial paper,
senior and subordinated debt. The debt is rated by Dominion Bond Rating
Service Limited as follows; the commercial paper program R1-high and the
senior debt AAA, which are the highest possible ratings, and the subordinated
debt is rated BBB.
    "This transaction will further simplify the corporate structure of HOMEQ
and its subsidiaries, thus reducing overheads and improve operational
efficiency, critical in a growing business" 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 $678.3 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

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HOME EQUITY INCOME TRUST

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