HEM Tables

Discussion in 'Loans & Mortgage Brokers' started by Peter_Tersteeg, 31st Jul, 2019.

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  1. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I've managed to extract the June 2019 HEM tables from one of the banks.
     

    Attached Files:

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  2. Diesel1990

    Diesel1990 Member

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    What is classed as remote?
     
  3. Blueskies

    Blueskies Well-Known Member

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    Good news folks there is a simple loophole here that can be exploited - just need to get your net taxable income (excluding rents) above $306,732...

    IMG_20190731_132736.jpg
     
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  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I don't know. This is a table I found in a lenders servicing calculator. I wasn't able to find a location index, nor was I able to see any code to indicate how any of these figures are used.
     
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  5. Blueskies

    Blueskies Well-Known Member

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    Jokes aside, thanks for posting this Peter. Do you think these values would be similar across the big 4?
     
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    They're probably similar, but wouldn't be exactly the same. It was either deliberate or some bad coding that allowed me to get a hold of this one. Most lenders hide this information and protect it well.
     
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  7. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    Big jump up from a few years ago considering inflation has apparently been running at 1.6% pa.

    The whole thing is a bit rubbish. It is based on a phone survey every 3 months conducted by a left leaning think tank asking people what they spend on x,y,z, then used by lenders as gospel. They should be able to set their own figures based on the masses of data they have.
     
    Last edited: 31st Jul, 2019
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  8. JohnPropChat

    JohnPropChat Well-Known Member

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    Thanks Peter. What is the difference between Table 2 (Joint) and Table 3 (Joint with spouse)?
     
  9. sumterrence

    sumterrence Well-Known Member

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    Omg..... That jump is cray cray..... I hope the big 4 don't adopt this....its just ridiculously high.....
     
  10. sumterrence

    sumterrence Well-Known Member

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    I also absolutely hate the fact that banks apply a blanket approach to living expenses especially to the higher income earner.

    A lot of high income earners actually don't spend that much as per that table. Its really irritating that banks assume people earn more money SHOULD spend more and should live a lore luxurious life.
     
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  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    A common trait of wealthy people is that they tend to be good at saving money.
     
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  12. Lucki

    Lucki Well-Known Member

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    I suppose that table is from one of the big 4!?!?
     
  13. krusty900

    krusty900 Active Member

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    Could someone please explain....How can the joint with spouse be half of the joint? Or am I missing something?
    Cheers
     
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  14. MRO

    MRO Well-Known Member

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    Was about to ask the same thing. What is that?
     
  15. sumterrence

    sumterrence Well-Known Member

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    Not from NAB, however NAB has added EXTRA living expenses items ON TOP of the current HEM to counter the lowered floor rate....

    This new approach is good for first home buyers or customers with only 1 ppor, any one with multiple investment properties will be worse off with the new living expenses approach even after the lowered assessment rate.....
     
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  16. craigc

    craigc Well-Known Member

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    Hi Peter,
    Would this be the same back that had an error in their servicing calc when we chatted at the PC meetup the other month?
    Cheers
     
  17. euro73

    euro73 Well-Known Member Business Member

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    When I wrote back in May that the impact on borrowing power from the reduced assessment rates wouldn’t be as potent as many were saying, and that lenders were giving with one hand and taking away with the other - this is why I took that position.
     
  18. dave80

    dave80 Well-Known Member

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    what is the dynamic calculator - is this just using the applicants estimate costs, assuming it'll never be lower than 290-306k threshold?
     
  19. Sloth Inc

    Sloth Inc Member

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    It appears that the HEM flat-lines for incomes from 200k to 300k. I suspect that either the "dynamic" calculation is in reality not very dynamic at this point in time, or it ramps up for very significant incomes.
     
  20. krusty900

    krusty900 Active Member

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    Anyone?

    ‘Could someone please explain....How can the joint with spouse be half of the joint? Or am I missing something?’