Home Equity Income Trust Subsidiary Announces New Best Rate Planned Advance Option

TORONTO, April 9 /CNW/ - Home Equity Income Trust's (HOMEQ) (TSX: HEQ-UN.TO) subsidiary, Canadian Home Income Plan Corporation (CHIP), today announced the availability of a Best Rate Planned Advance Option that affords homeowners aged 60 and older the ability to turn $1,000 of their home equity into tax-free cash on a monthly basis.

Seniors who choose this flexible new offering will benefit from CHIP's current variable interest rate of 6.75 per cent - the lowest reverse mortgage lending rate in the country - which is guaranteed not to exceed the bank Prime Rate plus 1.5 per cent and is compounded semi-annually.

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. With a CHIP Home Income Plan, funds are never taxed as income and 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.

The Best Rate Planned Advance Option now provides an even more convenient way to put home equity to work to manage day-to-day living expenses. CHIP offers Canadians 60 and over the option to receive regular installments monthly, quarterly or annually up to $12,000 per year.

"With $1,000 per month, seniors can use their home equity to pay for ongoing home maintenance and upkeep, hydro, cable and phone bills, as well as property taxes, and still have money left over to enjoy life on their terms," said Steven Ranson, President and CEO of Home Equity Income Trust. "In addition, those seniors coping with rising condo fees may choose this option to offset increasing expenses."

This solution is also ideal for seniors who may be more comfortable accessing a smaller portion of their home equity on an ongoing basis.

"What's more, having a rate guaranteed not to exceed Prime Rate plus 1.5 per cent, compounded semi-annually, makes this option attractive to seniors who access their home equity regularly by way of various lines of credit. Seniors who worry that changes to their future level of income, or credit qualifications, may affect their ability to access their home equity when they need it most, now have another viable option," added Mr. Ranson.

By turning home equity into cash, CHIP's simple and sensible financial solution enables seniors to enhance their monthly cash flow. They can then choose to pay off outstanding debts, make new investments to generate additional monthly income, or help children and grandchildren reach their financial goals.

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. 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 December 31, 2007, the portfolio generating cash returns to the Trust comprised approximately 6,700 reverse mortgages with an accrued value of $708 million, secured by residential properties across Canada worth approximately of $2.0 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.

Contacts

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