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Old 27.06.2011, 17:31
meloncollie meloncollie is offline
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Re: Swiss Mortgage Margin Calls

I believe this happened in 1990 or so (a bit before my time anyway). When the property prices fell sharply, some banks then called in the difference to cover their exposure.

A couple of my friends were affected, needing to come up with some serious cash sharpish to top up the deposit payment.

A good reason not to stretch too far in today's bubble market. Or, if taking out a maximum loan makes sense at the moment, it might be a good idea to keep some of your investments fairly liquid - or at least keep those assets with the bank holding your mortgage so you are in a better position to negotiate.

But in any event, check the small print on your loan agreement. There should be something discussing this possibility.
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