are underwater 10% that can have real implications on your ability to refinance your property come renewal time
Actually, you won't have any problems renewing. You only qualify for the first mortgage - for the renewals, your mortgage holders simply send a you the paperwork to sign. No qualifying.
If you want to change banks that's a different matter.
You obviously have never held a mortgage
I missed you eyes! Condescending as always!
You wont have to pass the official stress test, if you resign with the current lender. If you change lenders, you do.
If your lender views your position as higher risk upon renewal they get to choose under what terms, and rate they will renew your mortgage. This means a likely premium on the interest rate, and the ability to ask the homeowner for a "top up" of their mortgage to bring their ratios more inline with lending standards.
All this means, as a leveraged buyer you are taking on inordinate amount of risk in this market.
To be clear - if you're coming in with a hefty DP, can afford to hold for 10 years, I think the above is a moot.
If you're like most buyers today, borrowing DP's from Government or parents, using credit to meet monthly shortfalls, or relying on 3% interest rates for term of mortgage, that's a completely different scenario.