Niagara Mortgage and Refinance – HELOC’s
We’re hearing from multiple sources that a 65% loan-to-value (LTV) maximum is now a done deal for lending HELOC mortgages (Home Equity Line of Credit).
The HELOC LTV limit is currently 80% (meaning 20% property equity needs to stay in the home).
Should the same rules apply to low-risk borrowers versus high-risk borrowers? On a case-by-case scenario, some homeowners have a line of credit in place for emergency situations and when needed they utilize lump sum privileges to quickly repay…on the other hand, you have homeowners that max their usage and only pay back the minimum.
Should the same rules apply to low-risk borrowers versus high-risk borrowers? On a case-by-case scenario, some homeowners have a line of credit in place for emergency situations and when needed they utilize lump sum privileges to quickly repay…on the other hand, you have homeowners that max their usage and only pay back the minimum.
Which leads me to the question…should the ‘low-risk’ be qualified the same, or be put in the same pot, as the high-risk borrowers?