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This I agree with. The question, I guess, is whether margin-calling a residential property loan would be in the shareholders interest. It's an intriguing question.

I think you're probably right. I guess I'm just keen to find out what it really means for me.

The issue, then, seems to be whether general market falls constitute an actual fall of a specific property, being used as security for a loan. For me, the real question is simply "can the bank ask for additional security in the event my LVR drops below a certain level"? As investors, the...

Has anyone got any actual examples of this occurring with residential property loans?

But isn't that exactly the point? If you margin call someone on a property there's a high probability you'll have to repossess and sell the asset, which destroys the ongoing cashflow of the loan, as well as potentially devaluing other similar assets held as collateral. The flipside is of...

The question we have to ask is WHY a bank would take such action against a borrower? If a borrower is making regular repayments, and has the means to continue to do so, what possible reason could the bank have for potentially destroying a paying customer's financial situation? Why on earth...