I have just applied for a revolving credit facility to add another $20K to an existing loan of 158K on investment property. The funds would be for repairs and possible future improvements. This will take the loan up to approximately $178K. Current security on the existing loan is $150K (the original purchase price). The CV on the property is $304K and the bank wants to increase security to this amount.
I know banks will try and get as much security as possible but this seems over the top. I realize they may think their security is a bit low at the moment. Am I overreacting to normal banking procedure in them wanting security up to the current CV even though the mortgage will be nowhere near that amount?
I know banks will try and get as much security as possible but this seems over the top. I realize they may think their security is a bit low at the moment. Am I overreacting to normal banking procedure in them wanting security up to the current CV even though the mortgage will be nowhere near that amount?
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