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Originally Posted by peat
yes there is, when the value of your house falls below the equity you have in it including the shares. Then you lose your job and cant pay the mortgage.
You cant absolutely rely on dividends or your job , you might get sick or be unable to work and health insurance doesn't cover it for example.
Only you can judge the risk on these possibilities but bad stuff can happen to anyone.
Of course that, I didn't think that needed to be said. That's not a margin call in the traditional sense of the word. If I spend $100K on a car (instead of mortgage, or buying shares outright) and then lose my job and crash the car, and can't pay my mortgage, and they foreclose, I don't think it's called a margin call.
This thread is about utilising home loans for shares. Not opening up a leveraged trading account.
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