Discussion in 'Loans & Mortgage Brokers' started by Peter_Tersteeg, 31st Jul, 2019.
I've managed to extract the June 2019 HEM tables from one of the banks.
What is classed as remote?
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...
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.
Jokes aside, thanks for posting this Peter. Do you think these values would be similar across the big 4?
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.
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.
Thanks Peter. What is the difference between Table 2 (Joint) and Table 3 (Joint with spouse)?
Omg..... That jump is cray cray..... I hope the big 4 don't adopt this....its just ridiculously high.....
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.
A common trait of wealthy people is that they tend to be good at saving money.
I suppose that table is from one of the big 4!?!?
Could someone please explain....How can the joint with spouse be half of the joint? Or am I missing something?
Was about to ask the same thing. What is that?
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.....
Would this be the same back that had an error in their servicing calc when we chatted at the PC meetup the other month?
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.
what is the dynamic calculator - is this just using the applicants estimate costs, assuming it'll never be lower than 290-306k threshold?
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.
‘Could someone please explain....How can the joint with spouse be half of the joint? Or am I missing something?’
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