Exit Strategy

The plan for how a loan will be repaid where the term runs past the point of expected retirement, or where the loan is short term by design. Lenders assessing older borrowers are required to consider how repayments will be met once employment income stops, and will want that plan documented, whether it is downsizing, superannuation, sale of an asset or ongoing income. It also applies to bridging and short term facilities, where the exit is usually the sale of a property.