Peak Rewards - CHIP by HomeEquity Bank

Mortgage Broker/Agents Rewards Program

The following are the terms and conditions (the “Terms”) for the Rewards Program provided by HomeEquity Bank (the “Bank”) to mortgage broker/agents (the “Rewards Program”). The Rewards Program period for each given year begins on January 1 and ends on December 31 of the same calendar year. The Rewards Program period will reset the following calendar year and the new Rewards Program period will be in effect.

Eligibility

To qualify for a particular tier, and therefore, to receive the Increased Commission (as hereinafter defined) outlined in Table 2 below, a mortgage broker/agent is required to meet either the minimum number of funded deals OR a minimum total dollar value of funded deals. These include deals closed as a CHIP Reverse Mortgage® CHIP Max Reverse Mortgage, a CHIP Open Reverse Mortgage or an Income Advantage Reverse Mortgage (the “Deals”) as set out in Table 1 below. A mortgage broker/agent will need to complete the funded Deals on or before December 31 of the same calendar year. A Deal is considered funded once it closes in the Bank’s system of record. The number of Deals that qualify for a particular tier will be retroactive to January 1 of the same calendar year.

Table 1

	Tiers
	Bronze	Silver	Gold
Number of funded deals*	6-11	12-19	20+
Total cumulative funded volume*	$2M+	$4M+	$7M +

*Total deal count / total volume is only for a calendar year and resets every year. PEAK Rewards Bonus paid on Initial Advances for the year and not on Subsequent or Planned Advances that are paid as normal.

Increased Commission in Basis Points

Once the Bronze, Silver or Gold tier is reached, a mortgage broker/agent will receive additional basis points (the “Increased Commission”) on the initial advance amount for Deals closed on or before December 31 of the same calendar year, that qualify under a particular tier. Only new client Deals that fund will count towards qualification of each tier.

Table 2

	Bronze	Silver	Gold
Total basis points in compensation on initial advances – for all Mortgage Broker Deals	Base Rate+10	Base Rate+20	Base Rate+30

*Base Rate = 110BPS as of January 1^st, 2022

Maintaining your status:

If a Mortgage Broker /Agent has achieved Bronze, Silver or Gold status within a calendar year (year 1), they will begin the next calendar year (year 2) at the same status level. The Mortgage Broker/ Agent’s status level in year 3, will be determined by the number of deals funded in year 2. Please see the table 3 for examples of the above.

Table 3

	Example 1	Example 2	Example 3
Year 1	6 deals = Bronze	6 deals = Bronze	6 deals = Bronze
Year 2	Jan 1 opening status is Bronze Jan 1 – Dec 31: 3 funded deals	Jan 1 opening status is Bronze Jan 1 – Dec 31: 6 funded deals	Jan 1 opening status is Bronze Jan 1 – Dec 31: 12 funded deals
Year 3	Minimum Commission	Jan 1 opening status is Bronze	Jan 1 opening status is Silver

Table 4 provides an illustration of how a mortgage broker/agent’s compensation would be calculated, if the mortgage broker/agent funded 12 Deals over the course of a year with the average Deal size assumed to be $185,000).

Table 4

12 Total Deals	Standard	Bronze	Silver	Gold	Total
Number of Deals in tier	1-5	6-11	12-19	20+	N/A
Funded amount in initial advances	5*$185,000= $925,000	6* $185,000 = $1,110,000	1 X $185,000 = $185,000	0	12 X $185,000 = $2.220M
Basis points commission for tier	110bps(Base rate)	110bps(Base rate) +10bps(Bronze rewards)=120bps	110bps(Base rate) + 20bps(Sliver rewards)=130bps	110bps(Base rate) +30bps(Gold rewards)=140bps	N/A
Total compensation	$10,175	$13,320	$2,405	0	$ 25,900

Payment

Once the Bronze, Silver or Gold tier is reached, the Increased Commission will be paid on a monthly basis.

General Terms and Conditions

This Rewards Program is subject to all applicable federal, provincial and municipal laws. The decisions the Bank makes with respect to all aspects of this Rewards Program are final and binding on all mortgage broker/agents without right of appeal, including, without limitation, any decisions regarding the eligibility of any person. By participating in this Rewards Program, you are agreeing to be legally bound by these Terms.

The Bank reserves the right, in its sole and absolute discretion, to cancel, amend or suspend this Rewards Program, or to amend these Terms, in any way without prior notice or obligation for any reason whatsoever. The Bank reserves the right, in its sole and absolute discretion, and without prior notice, to adjust any of the dates, timeframes and/or other mechanics stipulated in these Terms, to the extent necessary, as a result of any circumstances which, in the opinion of the Bank, in its sole and absolute discretion, affect the proper administration of this Rewards Program as contemplated in these Terms, or for any other reason.

By participating in this Rewards Program, you expressly consent to the Bank, its agents and/or representatives, storing, sharing, using and disclosing the personal information submitted while participating in this Rewards Program for the purpose of administering this Rewards Program and in accordance with the Bank’s privacy policy (available at: https://www.homeequitybank.ca/privacy/).

In the event of any discrepancy or inconsistency between the terms and conditions as provided in these Terms and disclosures or other statements contained in any marketing-related materials, including, but not limited to point of sale, print or online advertising, the terms and conditions of these Terms shall prevail, govern and control to the fullest extent permitted by law.

In the event of any discrepancy or inconsistency between the English and French version of these Terms, the terms and conditions of the English version of these Terms shall prevail, govern and control to the fullest extent permitted by law.

Trademarks are owned by the Bank or related entities.

You are responsible for any income tax liability arising from the Rewards Program. The Bank does not issue tax receipts.