Say you brought a property for 300k, with a 30k deposit, and the market went down and your house is now only worth 250k. Is it possible for the bank to ask for more money so that you still have an acceptable LVR for the bank?
The reason I ask is that if you brought quite a few properties, and kept borrowing against their equity during a boom, you might be in a bit of trouble if values dipped for a few years and the above happened.
It may not even be possible, but it's something that crossed my mind when I was reading a post about boom/bust cycles.
The reason I ask is that if you brought quite a few properties, and kept borrowing against their equity during a boom, you might be in a bit of trouble if values dipped for a few years and the above happened.
It may not even be possible, but it's something that crossed my mind when I was reading a post about boom/bust cycles.