....lets get this straight a home loan is an entirely different beast, or contract as such,**** there are no margin calls on a legitimate home loan
there are business loans out there which are very different contracts to a standard home loan contract....
they do not have margin calls on them as such....but they do have facilites to be reviewed at the banks discretion.
usually the banks will not review the facility....unless there is trouble, a hiccup or the borrower is not repaying the loan in accordance with the contract....
then there are developers loans.... or small business loans....using the home as security.... these are not home loans....they are business and commercial loans .....the contracts are very different
for the benefit of the viewers on this property forum.... we are discussing ordinary standard home loans, attached to ordinary standard houses
the contracts for which all banks, lenders must abide by... there are no margin calls or fluffy ducks involved here
if a person got a margin loan, and used his home as security...it is still a margin loan against the shares no ifs or buts.... now the borrower may not fully understand the facility they have....so if they renig on the deal, fall behind in payments etc...and the banks call them in....it is quite a different kettle of fish...
as winne rightly stated....the banks dont call in a facility whilst it is being repaid correctly and in accordance with the contract....the banks dont care if there is a slight movement in house prices...
they really do care, about non performing borrowers....and will clamp down very quickly.... plus the borrower is basically black listed from borrowing again..... oh sure, these borrowers can get a loan, but they will pay a much higher rate of interest, have a lower LVR and other implications
if you want to discuss business loans, commercial loans, developers loans, or margin loans....I suggest you spell it out... so the kids dont get confused with standard home loan contracts.
