Home Equity Income Trust Subsidiary Enters Into Distribution Agreement

    TORONTO, Oct. 1 /CNW/ - Home Equity Income Trust (HOMEQ) (TSX: HEQ.UN)
today announced that its subsidiary, Canadian Home Income Plan Corporation
(CHIP), has entered into a distribution agreement with Laurentian Bank of
Canada. The Quebec based banking institution, which operates across Canada,
has chosen CHIP as its provider to meet the diverse retirement needs of senior
customers over 60 years of age.
    For over 20 years, CHIP has been the industry leader in home equity
lending to seniors, enabling access of up to 40 per cent of a home's value in
tax-free cash with no income, credit or medical qualifications. The new
partnership with Laurentian Bank will further CHIP's reach to seniors through
the bank's well established branch network in specific market segments.
    "We realize the importance of offering our customers over the age of 60
simple and sensible financial solutions to meet their changing needs at
retirement," said Stephane Langlois, Assistant Vice President, Retail
Financial Services, Laurentian Bank of Canada. "Our new partnership with
Canadian Home Income Plan will enable us to provide clients who face financial
challenges during retirement with a viable option that supplements their
income and allows them to enjoy their golden years."
    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
unlocking up to 40 per cent of their home's equity into cash, CHIP enables
seniors preparing for retirement to enhance their monthly cash flow. They can
then choose to pay off outstanding debts, make new investments or help
children and grandchildren reach their financial goals.
    "As a recent Statistics Canada report reveals, Canadians aged 55 to 64
are the fastest growing segment of the population which means a great influx
of people will be heading into retirement in the coming years," said Steven
Ranson, President and CEO of Home Equity Income Trust. "This data indicates
that most Canadians will have a growing need for a sensible financial solution
as they approach retirement and accessing home equity will be an attractive
option to an increasing number of Canadian seniors."
    "This new agreement with Laurentian Bank is a very important one for us
as it further strengthens our already comprehensive referral network," added
Mr. Ranson. "We recognize the value of this partnership given the dynamic
growth in the marketplace, and we believe it will both add to the borrowing
and investment options Laurentian Bank's financial planners can present to
senior clients, and help them 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. 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 June 30, 2007, the portfolio generating cash
returns to the Trust comprised approximately 6,560 reverse mortgages with an
accrued value of $654.6 million, secured by residential properties across
Canada worth approximately of $1.8 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

    %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


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890