This description relates to low VOC water borne coating compositions with improved application properties based on a binder mixture comprising an urethanized polyester and an acrylic two-step polymer. This description further relates to the use of the low VOC water borne coating compositions for forming a coating, preferably for forming a clear coat, and more preferably for forming a clear coat in refinishing applications. Moreover, this description also relates to a method of forming a multilayer coating comprising a step of forming a coating layer by using the low VOC water borne coating composition.