{"id":16803,"date":"2019-02-06T15:00:12","date_gmt":"2019-02-06T02:00:12","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=16803"},"modified":"2019-02-06T15:00:12","modified_gmt":"2019-02-06T02:00:12","slug":"its-one-of-the-most-controversial-tools-used-by-aussie-banks-to-decide-whether-you-deserve-a-home-loan-and-its-not-going-anywhere-soon","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/its-one-of-the-most-controversial-tools-used-by-aussie-banks-to-decide-whether-you-deserve-a-home-loan-and-its-not-going-anywhere-soon\/","title":{"rendered":"It\u2019s one of the most controversial tools used by Aussie banks to decide whether you deserve a home loan. And it\u2019s not going anywhere soon."},"content":{"rendered":"

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PHOTO:\u00a0Household Expenditure Measure,\u00a0Melbourne Institute – University of Melbourne<\/span><\/strong><\/p>\n

For more than a decade, one magic number has made the difference between nabbing your dream home \u2014 or being rejected for a loan.<\/p>\n

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That number is the Household Expenditure Measure (HEM), a tool that has long been used by most of our banks to calculate our expenses and ability to manage repayments, which then helps determine how much we can borrow.<\/p>\n

But it\u2019s also hugely controversial, as there\u2019s often a discrepancy between a person\u2019s estimated and actual expenses.<\/p>\n

Since the banking royal commission has been underway, banks have started to reduce their reliance on the HEM amid fears Commissioner Kenneth Hayne would call for it to be banned altogether.<\/p>\n

But that hasn\u2019t happened.<\/p>\n

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