Household expense for loan calculation - june 2019

Hi experts,
With the recent interest rate cut one of my friend was requesting pre-approval for his first home. He was advised for x$ and then in the approval it cam as 0.9x $. Thats 10% below the original borrowing capacity.

Bank was advising him that its due to their internal change for minimum expense limit. It was increased form 3000$ to 3600$ and that affect his loan. This would be his first home and its NAB bank. They were offering good interest rate 3.49% fixed for two years.

Is this true? Have they increased minimum expense for the loan calculation? Does all other banks do same?

Please advise. Thank you

 

minimum living expenses increase at least yearly.

 

Yes they change regularly. But in most cases we find clients actual expenses are usually (but not always) higher than they declare - their 'real' figures are usually higher than the banks minimum.

 

Thank you. But his income didn’t increase that phase. Actually its same for few years for him.
Its interesting.