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

2. Page  2 CHIP was established in 1985 2009- 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?

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

4. 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, 2011 2 Statistics Canada. Table 051-0001 - Estimates of population, by age group and sex for July 1, 2010 3 Highlights of "Canada’s aging Boomers place new strain on pensions, health care: Census" Released by Postmedia News May 29th, 2012

5. 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 7 1.4 million seniors own their own home and are mortgage free 8 84% of seniors don’t want to move 9

6. 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

7. 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

8. 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

9. 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%

10. Greater Vancouver Average Annual Home Value Increase rates Historical data provided by: Real estate Board of Greater Vancouver Jan 2014 13 years 2000 - 2013 + 12. 8 % average Annual Increase 23 Years 1990 - 2013 + 10. 4 % 33 Years 1980 - 2013 + 20. 2 %

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