Tapping into Canada’s Fastest Growing Segment: Exploring New Market Opportunities

Page  2 CHIP was established in Canada’s Leading National Reverse Mortgage Provider becomes a Schedule 1 Chartered Bank Only Canadian National provider of CHIP Home Income Plan 2014 projection: To fund 334,000,000 CHIP and HomEquity Bank….who are we?

Where does HomEquity Bank receive their CHIP clients?  Consumer Call Center  Banks & Credit Unions  Mortgage Brokers  Financial Planners Page  3

Page  4 Canada’s Fastest Growing Market Segment and Opportunity Seniors are the fastest growing segment of Canada’s population  There are 6.8 million seniors (60+) 1  19% growth in the next 6 years 1  Approximately 1,000 people turn 60 every day 2  With a growth rate of 29%, Canadians between the ages of 60 and 64 are the fastest growing group 3  50% chance of living to 92  51% carrying debt into retirement  61% want to stay in their homes  50% believe they will run out money within 10 years 1 HRSDC calculations based on Statistics Canada, Statistics Canada. Table Estimates of population, by age group and sex for July 1, Highlights of "Canada’s aging Boomers place new strain on pensions, health care: Census" Released by Postmedia News May 29th, 2012

Brokers Fastest Growing Opportunity Page  5 Investment Assets (Reg/non-Reg) 23% Home Equity 77% 77% of a senior’s net worth is home equity million seniors own their own home and are mortgage free 8 84% of seniors don’t want to move 9

Page  6 What do These Clients Look Like Opportunity for Mortgage Brokers!  No Opportunity to pay for Life Events- medical care, home repairs  Retired with debt and looking for payment options  Have not saved enough to maintain lifestyle for the next 30 years  Portfolio has not performed as well as planned  Considering downsizing/right sizing  Want to travel  Want to buy a second home- Snow birds  Help children or grandchilden purchase a home

What information is needed to Qualify for a Reverse Mortgage? Page  7 1. Client(s) Birthdates 2. Property address including postal code 3. Property type 4. Property Value No income…….No Credit

Page  8 CHIP Home Income Plan Solution- Major Features Eligibility Value Flexibility and Choice Ownership and Estate Protection  Homeowners age 55 and older  No income qualification  No credit requirements  Qualify for up to 50% of the home’s value  Money can be received as a lump sum or over time or combination  Tailor to suite your needs  No payments required until the house is sold or both owners move out  Clients have the option to repay the principal and interest in full at any time  Clients also have option to pay interest monthly  Owner maintains title  They can move or sell any time  Amount to be repaid is guaranteed not to exceed the fair market value of the home at the time it is sold

Page  9 CHIP Home Income Plan Solution Costs  Appraisal cost: $235 - $400  Independent legal advice: $300 - $600  Set up Fees $595 to $1995  Interest rates prime +1 ¼ to 5.49%

Greater Vancouver Average Annual Home Value Increase rates Historical data provided by: Real estate Board of Greater Vancouver Jan years % average Annual Increase 23 Years % 33 Years %

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