Refinancing for only up to 65% LTV next year?

[multiroger]

I was told it is possible for the rental properties to get only 65% LTV during refinancing next year. Some banks have already enforced the rule this year. Is it a rumor or something possible to happen?



Thanks



Roger

 

[kfort]

Don't believe everything you hear. New mortgage rules for investors have had an impact already. That being said, when I create projections for potential partners I use 65% LTV for a refinance number. Plan for the worst, hope for the best, when the worst happens you won't break a sweat.

 

[Thomas Beyer]

[quote user=kfort]Plan or the worst,
You can't do that as the worst is a war, a nuclear explosion nearby and/or interest rates @ 28% .. all possible yet extremely unlikely events, of course.



I have not heard anything that you cannot refi @ 80% .. but it depends on your net worth and income of property so a modest portfolio of a few houses by yourself will be harder to refi than those co-owned with JV partners that co-qualify for mortgages

 

[tkjca]

I just closed a refinance last week and got 80%. Was normal according to my mortgage broker. No hints of it going down.

 

[kfort]

Plan for second** worst - you'll stress less

 

[bizaro86]

I suspect that was mistaken rumour stemming from someone who had a lack of understanding of the HELOC rules, where only 65% of the property's value can be on a HELOC. I doubt refinance goes down to 65%, if the government wanted to tighten further it would make more sense to increase the owner occupied minimum from 5%.



Michael