Maria is a property investor in Edmonton with a portfolio of rental properties. She secured a private mortgage for six months to purchase a new property, understanding that she would refinance it with an A lender once her existing rental property's tenancy agreement was renewed, providing stable income for conventional underwriting. What does this strategy represent for the private mortgage?

Question: Maria is a property investor in Edmonton with a portfolio of rental properties. She secured a private mortgage for six months to purchase a new property, understanding that she would refinance it with an A lender once her existing rental property's tenancy agreement was renewed, providing stable income for conventional underwriting. What does this strategy represent for the private mortgage?

Answer options:

• A long-term investment strategy.
• A form of debt consolidation. ✅ An exit strategy.
• A high-ratio mortgage approval strategy.

Correct answer: An exit strategy.

Explanation: An 'exit strategy' in alternative lending refers to the plan for how the borrower intends to repay or refinance the short-term, often higher-cost, private or B-lender mortgage into a more conventional and economically sustainable mortgage.