No. Expense benchmarks and policy overlays vary by lender and borrower profile.
What is Household Expenditure Measure (HEM)?
Quick definition
HEM is a benchmark expense concept used in lending assessments alongside your declared living costs.
Borrowing capacityGeneral
Overview
HEM is commonly referenced as a benchmark for household living expenses in Australian credit assessment. Lenders may compare declared expenses against benchmark assumptions.
Assessment outcomes can use lender-specific minimums, segmentation, and policy overlays, so final treatment varies by institution.
A borrowing estimate can change if assessed expenses are lifted to policy minimum levels.
Why it matters
- Declared expenses that are very low may be adjusted upward in assessment.
- Expense treatment can materially affect borrowing capacity.
- Improves realism when planning affordability scenarios.