Helo All,

I Would like to know whether for this situation the vendor will be applied with LTV 70% rule or not?


Vendor A got 3 properties with the percentage of loan borrowed as:


1. Condo A - 90%
2. Condo B - 90%
3. Condo C - 70%


So when the vendor sell his\her condo A and has paid full settlement the situation will become:


1. Condo B - 90%
2. Condo C - 70%


So if the vendor decided to buy his next residential property will he \ she get 90% or 70% loan?


1.Condo B - 90%
2.Condo C - 70%
3. Condo D -70 or 90%?


Thanks !

Hello,

Condo D will be 70% LTV.

Why? Because the rule is that, for any applicant with 2 residential mortgages, the 3rd residential mortgage application will be limited to 70% LTV. They never stipulated the date of purchase vs the LTV of the previous 3rd property or whatever. I've tried on behalf of my applicants but they all failed to get 90% LTV for "Condo D".

I have heard that you can appeal by showing the LO vs SPA purchase price of the "Condo C" to show that you got it for 70% LTV, and still get the "Condo D" for 90% LTV but I haven't seen it done in practice. Any other bankers/brokers if have more experience in this can share.

This post has been edited by wild_card_my: Jul 3 2015, 02:07 AM

Hi, anyone/any bankers have experience with the scenario below?
When sell off 90% LTV house, can recover the 90% quota even tho still have two houses.

Thank u!

Hi, anyone/any bankers have experience with the scenario above by original poster?
When sell off 90% LTV house, can recover the 90% quota even tho still have two houses.

Thank u!

will refer to borrower CCRIS record got reflect how many housing loan.
If existing got show 2 home loan, the new loan application will be MOF at 70%. LTV is always refer to number of home loan in CCRIS record.

Hi, tumpang thread a bit. What if Condo B or C is non residential, i.e Commercial would the subsequent purchase of COndo D which is a residential prop qualify for 90%. Also assuming borrower has healthy DSR that allow to go for 90% loan instalment. Would that work?

will be refer to your ccris record. if your facility tagged as HL, mean is home loan application.