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You appear to be annoyed because I have rightly pointed out that your CBA information booklet probably covers both regulated and unregulated loans, and therefore not all the clauses in there would be applicable to regulated loans, and that other T&Cs apply by law that are not mentioned in the...

I don't consider that. Some clauses in the booklet might be included in the T&C of an actual loan contract. The booklet appears to cover both regulated and unregulated loans, refer to highlighted text in the image above (some clauses might only be applicable to regulated loans). The booklet...

I don't think that. They could be. Some (maybe all, though I doubt it) clauses in the booklet might (or might not) be included in the T&C of an actual loan contract. However, nobody has posted such a contract yet, and it hasn't been part of any loan contract that I've ever seen. You can see...

Sorry, when you said 'that' contract, I thought you were referring to the specific scenario and contracts being discussed here, in which case, no, the CBA and Westpac contracts I've seen do not have clauses that could be used in the 'margin call' manner being discussed. If you're just asking a...

The legally binding contract is the document signed by the borrower. Show me the contract and I'll tell you.

Some clauses in the booklet might be included in the T&C of an actual loan contract (although nobody has posted such a contract yet, and it hasn't been part of any loan contract that I've ever seen). A clause like that might be used if the property value is reduced through some action by the...

No. Even TF now concedes that it would probably be illegal to use such a clause in the manner being discussed in this thread.

Yes thanks, we've already covered the fact that the CBA booklet is not a contract.

Exactly - thank you. I said that the CBA information booklet contains various T&Cs that may apply across a broad range of loans, and I asked to see an actual contract that included those T&Cs. I also asked TF to advise whether every single T&C in the booklet was present in every single loan...

What I actually said was that the CBA information booklet contains various T&Cs that may apply across a broad range of loans, and I asked to see an actual contract that included those T&Cs. I also asked TF to advise whether every single T&C in the booklet was present in every single loan...

You know very well that I never argued that those are not contractual terms. In fact I clearly said that lenders can stick whatever clauses they want into a contract (if they put something in a contract it becomes a contractual term). I then pointed out that such clauses are not necessarily...

Figure of speech (obviously nothing lasts forever). Perhaps one day a lender will try to enforce such a clause through the courts... it would be interesting to see the outcome.

I don't believe so. My question to Treasury covered this point. I asked... '...after taking out a mortgage, property values in the area fall to a point where the value of the property might be less than the originally agreed LVR, or fall to some other point where the lender is not 'satisfied'...

Yes, the argument is mainly hypothetical as the situation is never actually going to arise in real life.

Shares are fungible, and the value of a share is instantly available as a market indicator. Contrary to your claim, margin calls do occur when the market indicator (i.e. the share price) drops. Dwellings are unique, and the value of a dwelling is estimated based on the sale price of other...

It certainly is. My initial statement was 'Some people like to suggest that banks can 'call in' or 'margin call' or repossess the homes of borrowers who end up in negative equity simply because house prices happen to fall.' I followed this with links and research to demonstrate banks can't just...

The wording is in my very first post, it has been there from the beginning of the discussion, and has been repeated many times throughout the thread. This discussion is about whether general house price falls alone could be used to margin call on property. Frankly, the fact that you missed this...

Go back and read the OP. Especially this bit... Do you realise that you have just admitted that you don't even know what this discussion is about. :rolleyes:

Um... exactly. That's what this discussion is about. :rolleyes: Thank you for finally agreeing with me.

That wouldn't be the 'alternative approach' - that would be the correct approach, because that is what we are discussing. I find your straw-clutching very amusing. :D 'We understand that some lenders will require the borrower to reduce their liability to a specified amount to reduce their...