Discover how you can unlock the value in your home.

Wouldn’t it be nice?®

Wouldn’t it be nice to have

the money to…

Invest and enjoy a little extra income…Pay off your debts...Update your home…Help your family…Do more of the things you enjoy?

With a CHIP Home Income Plan, you can.

InsideIntroduction . . . . . . . . . . . . . . . . . . . . . .1

How this Guide can help . . . . . . . . . . . .3

Understanding the CHIP Home Income Plan . . . . . . . . . . . 4

Finding the right balance between home equity and savings . . . . . . . . . . . .8

Use the money any way you want . . . .9

You should also know . . . . . . . . . . . . .13

When you’re ready to proceed, we’re here to help . . . . . . . . . . . . . . . .14

Notes . . . . . . . . . . . . . . . . . . . . . . . . . .16

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Thank you for your interest in the CHIP Home Income PlanWe’re very pleased to provide you with this Guide. It will helpyou discover how you can unlock some of the value in your hometo do the things you want to do.

CHIP Home Income Plan is provided by HomEquity Bank, aSchedule I Canadian Bank. HomEquity Bank is a subsidiary ofHOMEQ Corporation, a TSX-listed company.

We have been in business since 1986 and are the only Canadiannational financial services company exclusively dedicated to helpingsenior homeowners turn the equity they have built up in theirhomes into tax-free cash.

The made-in-Canada solution for Canadianhomeowners

The CHIP Home Income Plan is designed specifically to meet theneeds of Canadians like you. With over 20 years experience, we have an unmatched understanding of the goals of senior homeownersand the Canadian real estate market. We have used the knowledgewe’ve gained to create the most flexible program availableanywhere.

The value of the CHIP Home Income Plan is recognized byCanada’s leading financial institutions. We are very proud of thefact that CHIP is offered by all of the country’s major banks, as wellas many other banks, credit unions, financial planning companiesand mortgage brokers. They know that we have a proven trackrecord of outstanding customer service and financial strength.

The CHIP Home Income Plan has helped thousands of peoplewho were looking for a simple, sensible way to draw upon theequity built up in their homes. If you’re comfortable in your homeand don’t want to sell, we can help you too. Contact us wheneveryou’re ready and we’ll help you get the money you need to enjoylife on your terms.

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How this Guide can help We know that anything to do with money deserves carefulconsideration, so we have created this Guide to give you athorough and straightforward explanation of how a CHIP Home Income Plan works.

We’ve also included a separate CHIP Home Income Plan FactSheet with up-to-date information on our flexible features.

You’ll find check boxes throughout that you can tick off as areminder to ask your CHIP Representative for more information.And we’ve left space for notes at the back.

If you have any questions at any time, please be sure to call thetoll-free number on the letter that accompanied this Guide. YourCHIP Representative will be pleased to spend as much time withyou as you wish.

You are more than welcome to share this Guide with your family,friends or financial advisor and have them participate in anydiscussions we have. We find that some people like to getadditional advice, while others are comfortable making thedecisions themselves.

One thing we insist on is that you receive independent legaladvice before making your final decision. This ensures that you have been well-advised about all aspects of your CHIP Home Income Plan.

Let’s begin...Ask my CHIP Representative about:

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Understanding the CHIP Home Income Plan A CHIP Home Income Plan is a way to turn up to 50%* of thevalue that is locked up in your home into tax-free cash you canuse today.

Simply put, it is a loan secured by your home. The big differencewith the CHIP Home Income Plan is that you do not have tomake any payments – interest or principal – for as long as you oryour spouse live in your home. You maintain ownership andcontrol of your home while enjoying all the benefits of havingconverted some of your home’s value into cash. For all thesereasons, a CHIP Home Income Plan is a sound financial solutionfor many people.

Let’s look at the CHIP Home Income Plan in more detail

CHIP is designed exclusively for senior homeowners.This age qualification applies to both you and your spouse.

You can receive up to 50% of your home’s currentappraised value based on your age and that of yourspouse, and the location and type of home. First, wegive you an estimate of what you could receive. Then weconfirm the exact amount after you have authorized us toproceed with an independent appraisal of your home.

You choose how you want to receive the money. Most people take all the money that we make available tothem in one lump sum. However, you can take what youwould like now and contact us later to take more, arrangefor regularly scheduled advances, or choose a combination ofthese options.

* Some conditions apply.

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Ask my CHIP Representative about:

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You receive the money tax-free. Because this is a loanbased on your principal residence, the money you receive is not added to your taxable income. That means it doesn’taffect Old Age Security (OAS) or Guaranteed IncomeSupplement (GIS) government benefits you may receive.

No payments are required while you or your spouse live in your home. This can make a big differenceto the level of cash flow you enjoy. It’s also what makes a CHIP Home Income Plan unique and so attractive to so many people.

If you borrow money any other way, you have to makemonthly payments. With CHIP, no payments are required untilyou choose to move or sell. The interest is simply added tothe outstanding balance and is compounded semi-annually.The full amount only becomes due when your home is soldor if you move.

You maintain ownership and control of your home.Your home stays in your name and the decision about whento move or sell is entirely up to you. You will never be askedto move or sell to repayyour CHIP Home IncomePlan. All that’s required isthat you maintain yourproperty and stay up-to-date with property taxes,fire insurance and anycondominium ormaintenance fees.

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Ask my CHIP Representative about:

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You keep all the equity that is left in your home. In ourmany years of experience, over 99.9% of homeowners havemoney left over when their CHIP Home Income Plan isrepaid. And on average, the amount left over is more than50% of the value of the home when it is sold. That’s moneyyou could use for a retirement residence, long-term care oranything else you wish.

The reasons for this remaining equity are:

• The conservative limit (up to 50%*) we put on the amountthat is made available to you;

• The fact that most homes continue to grow in value.

If you decide to proceed, your CHIP Representative will showyou how much equity you could have left based on theestimated value of your home today and how long you stay inyour home.

Your estate is fully protected. We guarantee that theamount to be repaid will never exceed the fair market valueof your home at the time it is sold. You can rest assured that your CHIP Home Income Plan will not be a burden to your heirs.

After your CHIP Home Income Plan is repaid, you or yourestate keeps everything that remains from the sale of yourhome. If your heirs want to keep your home, they can repaythe CHIP Home Income Plan from other funds you leavethem, from their own funds or by taking out a mortgage attheir financial institution.

You can save on taxes. If you decide to use the money youreceive to buy non-registered investments such as GICs andmutual funds, you may be able to deduct the CHIP HomeIncome Plan interest charges from the income thoseinvestments earn. The exact amount of interest will be shownon the annual statement you will receive from CHIP . Be sureto consult a financial or tax advisor.

* Some conditions apply.

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Ask my CHIP Representative about:

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It’s easy to qualify. We do not ask for any income or healthinformation as there are no minimum income requirementsand medical conditions have no effect on eligibility.

Requesting an estimate directly from us, or through yourfinancial advisor at most of Canada’s leading financialinstitutions, is the easiest way to confirm that you qualify.

If you have not yet received an estimate, these are theeligibility requirements that apply:

• You and your spouse are senior homeowners.

• Your home is your principal residence.

• Your type of home is eligible for a CHIP Home Income Plan.

• Your home is located in an area where CHIP Home IncomePlans are available.

• Any borrowing secured by your home (e.g., mortgage orhome equity line of credit) is less than the funds availablefrom CHIP.

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Ask my CHIP Representative about:

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Finding the right balance between home equity and savingsThinking about your assets as a pie that you’ve worked hard tomake can help you see how a CHIP Home Income Plan canenhance your financial situation.

Part of the pie is made up of the equity in your home and theother part is the money you’ve saved. Chances are, the value ofyour home has grown significantly over the years and now makesup the biggest part of the pie. While knowing that your home isworth a great deal of money is nice, the reality is that it can’t giveyou more income. Only your savings can do that.

A CHIP Home Income Plan lets you change the home equity andsavings balance by turning some of that equity into cash. As theillustrations below show, your pie is still the same size. It’s justsliced a little differently to give you the money you want.

We suggest consulting your financial advisor to determine theasset balance that’s right for you.

BEFOREa CHIP Home Income Plan

AFTERa CHIP Home Income Plan

This couple has a home that’s risen invalue to $300,000 and the savings they

count on for income are $100,000.They could use some additionalmoney to build their savings and

provide extra income every month.

By converting just some of the equityin their home into cash, they’ve

doubled their savings. They still have$400,000 in total assets; it’s just been sliced differently to give

them what they want.

Savings$100,000

Home$300,000

Home$200,000

Savings$200,000

Rebalancing assets of $400,000

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Use the money any way you wantWhen you receive money from a CHIP Home Income Plan, youcan use it any way you want. It’s helpful to find out why otherhomeowners decided on a CHIP Home Income Plan and howthey used their money from CHIP. So we’d like to share some of those stories with you.

We are committed to maintaining our clients’ privacy. These stories have been created from a cross-section ofexperiences. We have not used real names or the personalfinancial information of any individual.

Investing in themselves

Victoria and Simon A. were comfortable enough, but wished theyhad a little extra income to enjoy in retirement. The homes intheir neighbourhood had appreciated so much, they felt it was anexcellent time to put some of their equity to work. Their financialadvisor showed them howinvesting $125,000 from aCHIP Home Income Plancould increase their cashflow every month, and howthe interest could work asa tax deduction againstwhat their investmentsearned. They are enjoying anight out more often now,and are pleased that theinvestment they made willeventually be passed on totheir children.

Ask my CHIP Representative how this might apply to my situation.

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Eliminating debt worries

Mary C. was concerned that shemight have to sell her two-bedroomcondo that she loved so much. Shereceived close to $1,750 a month ingovernment benefits and retirementincome. But her mortgage paymentsof $510 a month plus condo fees andother debts were making it difficultto manage her budget. A friendsuggested she look into a CHIP Home Income Plan. With moneyfrom CHIP, Mary eliminated all her debts, and had enough leftover to invest $15,000 to create extra income for herself everymonth. She is delighted now that the financial pressure has liftedand she can stay in her home worry-free for as long as she likes.

Upgrading their home

Harry and Yvonne D. had no intentionof moving – their home was exactly theway they wanted it, except for the old-fashioned kitchen. They consideredtaking money out of their non-registered investments to pay for theupgrades or making a larger RRIFwithdrawal, but their financial advisorpointed out that taxes would eat up almost 40% of the withdrawaland it could reduce their government benefits. Their income fromthose investments would also drop considerably. Together, theyexplored the options and decided on a CHIP Home Income Plan.Today, Yvonne and Harry are pleased that improving their kitchendidn’t eat away at their investments.

Ask my CHIP Representative how this might apply to my situation.

Ask my CHIP Representative how this might apply to my situation.

Making an educated choice

Steve R. wanted to help his grandson achieve his dream ofbecoming an engineer. However, he wasn’t sure where the moneywould come from as his home was sorely in need of repair andwas getting costly to maintain. Steve’s neighbour, who already hada CHIP Home Income Plan, suggested Steve look into getting oneas well. With CHIP, Steve was able to unlock $92,000 of his homeequity. He gave his grandson $24,000 for tuition fees, made theneeded upgrades to his home and invested the balance of themoney to increase his monthly income.

11Ask my CHIP Representative how this might apply to my situation.

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Travelling more often

Recently retired, Rhonda W. was eager to start travelling moreoften and explore parts of the world she’d never seen before. She knew she had a lot of value tied up in her home, but wassurprised when she discovered how much. After consulting herdaughter, they determined that instead of cashing in investments, itmade sense for her to take a CHIP Home Income Plan and investthe majority of the funds to add to her retirement savings. Theextra income she earns from her new investments gives Rhondathe freedom to travel, and she can also cover the cost of futurejaunts to visit her children and their families.

These are just some of the many ways people have used a CHIP Home Income Plan to enjoy life on their terms. There areno restrictions on how you choose to use the money, with oneexception – if you have any outstanding loans secured by yourhome, such as a mortgage or home equity line of credit, they mustbe repaid with your CHIP funds. Any remaining money is yoursto use as you wish.

Ask my CHIP Representative how this might apply to my situation.

You should also know…Please see the enclosed Fact Sheet for details on thefeatures below –

You can choose your interest rate option

We give you the most flexibility with the choice of variable andfixed interest rate options.

Your CHIP Representative can give you the current rates or youcan find them at www.chip.ca

Set-up costs

Set-up costs cover the fees for an independent home appraisal andindependent legal advice, as well as legal and closing costs.

You can lower your borrowing costs with interestrate discounts

Our unique interest rate discounts can significantly lower yourborrowing costs, saving you thousands of dollars over the long term.

You have a number of payment options

No principal or interest payments are required for as long as youor your spouse live in your home. The full amount only becomesdue when you and your spouse pass away, when your home is soldor if you both move out. If you wish, you can repay the principaland interest in full at any time or pay interest on an annual ormonthly basis.

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When you’re ready to proceed, we’re here to helpIt can be just a matter of days from the time you request an estimate to the day you receive the money from your CHIPHome Income Plan. Here’s a look at the six simple steps alongthe way:

Step 1�

If you haven’t already done so, request a CHIP Home Income Planpersonal estimate today. Call us or visit www.chip.ca and we’llsend it to you right away.

Step 2�

We’ll call to see if you’d like to arrange a meeting with a CHIPHome Income Plan Representative.

Step 3�

We will speak by phone or meet in person to review yourpersonal estimate in detail and answer any questions you mighthave about CHIP. Family members, friends or your financialadvisor are welcome at this and any subsequent meetings. If youdecide to proceed, we’ll help you complete an application andthen arrange for an independent appraisal of your home todetermine the current appraised value.

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Step 4�

Once the appraisal has been received, we will confirm the exactamount of money you are qualified for and arrange a secondmeeting to discuss anything else that needs to be covered.

Step 5�

Before you make a commitment, we require you to seek legaladvice from an independent lawyer or legal professional of yourchoice. Your CHIP Home Income Plan contract will be signedwith your lawyer, who will forward it to us. If you don’t have a legal advisor, we can introduce you to one in your area.

Step 6�

You will receive your money. Most people have the fundsdeposited directly to their bank account so their personal bankeror financial advisor can assist with investing the money.

15Ask my CHIP Representative about: Ask my CHIP Representative about:

Thank you for your

time.We hope this Guide has been helpful. While there’s much to consider, there’s really just one key idea at the heart of it all – if some additional money can help you do what you want to do, aCHIP Home Income Plan can be the simple and sensible solution.With up to 50% of your home equity in tax-free cash and nomonthly payments to worry about, a CHIP Home Income Plancan help you enjoy life on your terms.

Please call the number on the letter that accompanied this Guidewhenever we can be of service.

Please note that terms and conditions, including set-up costs, are subject tochange. Our product is constantly evolving. Please visit www.chip.ca for themost up-to-date information and enhancements.

Notes

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CHIP REVERSE MORTGAGE RATE SHEETEFFECTIVE APRIL 1, 2015

Interest Rate Options

Options to Receive the Money

Payment Options

Setup Costs

Interest payments

Independent home appraisal

Independent legal advice is required

Legal, closing and administrative costs†

If the homeowner selects a fixed rate, it can be switched to a different fixed rate or to the variable rate during or at the end of the interest rate term. An interest rate differential may be applicable if switching during the current interest term. If the variable rate is selected, it can be switched to a fixed rate at any time.

No regular payments of principal or interest are required as long as the homeowner lives in the home. The homeowner can choose to make payments earlier as follows:

All or part of the accumulated interest can be paid by:• making one payment in a rolling 12 month period

(minimum of $1,000 or total accumulated interest,whichever is less).

• making regularly scheduled payments. Regularlyscheduled payments are eligible for an interestpayment discount of 0.25%.

• Fees typically range from $175 to $400,depending on the province and whether it’s anurban or rural property.

• Fees typically range from $300 to $600.• Paid by the client or from mortgage proceeds.• At homeowner’s request, HomEquity Bank can

provide clients with a list of legal advisors in theirarea who are familiar with CHIP.

• Costs will be deducted from mortgage proceeds.• Includes title search, title insurance, and mortgage

registration.• Costs vary depending on the interest rate or term

chosen.

Principal payments*

No prepayment charges apply:• on the first 10% of total funds owing that can be paid

once in a rolling 12 month period.• after 5 years of receiving the initial advance, a

fixed rate is selected and the payment is made within 30 days following the interest reset date.

Interest Rates and Closing CostsThe following is a summary of the current CHIP Reverse Mortgage rates offered by HomEquity Bank.

Term Interest RateLegal, Closing, and

Administrative Costs Annual Percentage Rate

(APR)1

6 month2 4.29% 5.69% $1,495

$1,495

$995

$995

$1,495

3 years4 4.99% 5.21%

4.99% 5.98%

4.99%7 5.12%

4.60% 4.79%Variable6

1 year3

5 years5

1. The Annual Percentage Rate (APR) is the cost of borrowing over the selected interest rate term, expressed as an annual percentage. It is based onthe opening interest rate and includes closing costs. The APR shown for illustration purposes is based on a CHIP Reverse Mortgage of $150,000.

Special offers are not posted rates of HomEquity Bank. Special offers may be changed, withdrawn or extended at any time without notice:2. 6 month special rate applies to new clients only. Existing clients’ 6 month rate is 5.19%.3. 1 year special rate applies to new clients only. Existing clients’ 1 year rate is 5.29%.4. 3 year special rate applies to new clients only. Existing clients’ 3 year rate is 5.39%.5. 5 year special rate applies to new clients only. Existing clients’ 5 year rate is 5.49%.6. Variable rate consists of the HomEquity Prime Rate (2.85%) + fixed spread (1.75%). The fixed spread is guaranteed for 5 years.

OptionMinimumAdvance

1. Single lump-sum (100% of fundsthe homeowner was approved for)

2. Initial lump-sum (less than 100%)with Subsequent Advances1

$25,000

$20,000 $10,000

The information listed in this Rate Sheet is subject to change without notice. | The most current information is available at www.chip.ca

CHIP is a product of HomEquity Bank. TM Trademark of HomEquity Bank.

1. Subsequent Advance administration fee: $50/advance.

†Other legal costs may apply if additional legal work is required (eg. title issues).*Payments are applied in the following order: default expenses and any othercharges; interest; prepayment charge; then principal.

Application must be received by June 30, 2015 and mortgage funds received by July 31, 2015.7.