Home Equity Income Trust Subsidiary Enters Into An Agreement with Multi-Prêts

TORONTO, June 10 /CNW/ - Home Equity Income Trust (HOMEQ) (TSX: HEQ-UN.TO) 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 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