Exit Strategies: Formulating a Plan for Refinancing

May 23, 2020

The day-to-day life at a mortgage brokerage can be fast paced, and sometimes even hectic. Once a last-minute purchase or urgent refinance is added to that mix, the pace can really take off.

Oftentimes, the focus in these situations is closing that last-minute mortgage without fully mapping out the next step.

Having a clear exit strategy can be a huge advantage for brokers, clients, and lenders alike.


The clearest benefit in formulating an exit strategy, is garnering repeat business. Once the initial scramble is over, having a step-by-step plan for borrowers to follow will likely result in getting their file again when their initial mortgage is up for renewal.

Whether their challenge is bruised credit, thin credit, unusual income, or otherwise, a personalized plan to address the issue is ideal for connecting with clients, building trust in the broker-client relationship, and ensuring that they will return again and again.

Mentioning that an exit strategy has been discussed with clients also shows potential lenders that the application process has been thorough, and may lead to less questions during underwriting, resulting in a faster turnaround time for everyone!


An attractive interest rate is something most borrowers are seeking. If a short-term mortgage with a higher interest rate is called for, showing the borrowers how to move smoothly from that mortgage to one with a lower interest rate will result in real and obvious benefits for them in the future.

Discovering credit problems, especially at the last minute, can be both frightening and frustrating for clients. A plan outlining how to resolve the issues standing between borrowers and the best possible rate can lead to a smoother mortgage process both now and in the future.


Knowing that a broker has discussed an exit strategy with a borrower can make the underwriting process more efficient. Including this information in notes can mean that less questions arise, and it may even give the underwriter more confidence in the file. Thorough notes with details of an exit strategy may lead to less back and forth, reducing that stressful waiting period between submission and file complete.

Writing the exit strategy down and providing a copy to the client while keeping a copy on file is key.
Checking in periodically to see if progress is being made can also be really helpful in creating a win/win situation for everyone involved.



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About Magenta Capital Corporation

Established in 1994, Magenta Capital Corporation (MCC) is one of Canada’s oldest and largest Mortgage Investment Corporation (MIC) managers.  MCC sources, underwrites and manages a portfolio of primarily residential first mortgages, secured by properties located in Eastern and Southwestern Ontario, two of the strongest, most recession resistant real estate markets in the country. MCC has a 23-year track record of generating superior returns for the shareholders of Magenta Group MICs.  MCC exercises oversight responsibility for the Magenta Group MICs in its capacity as General Partner of three limited partnerships, each of which is wholly owned by one of the MICs.
For more information, call us at 888-267-1744 or  visit Magentainvestment.ca.