2017年11月21日 · The HEM, for example, is a measure that reflects a modest level of weekly household expenditure for various types of families. It is open to question whether – even if it is higher than a borrower’s own estimate – such a benchmark always provides a realistic assessment of a borrower’s genuine expenditure needs.

2016年3月18日 · APRA prudentially regulates banks and other deposit-taking institutions (ADIs). In late 2014, APRA (after consulting with our fellow financial regulators) flagged our intent to undertake more intensive oversight to reinforce sound lending standards in the residential mortgage sector.

The HEM (Household Expenditure Measure), developed by the Melbourne Institute, allows lenders to estimate a home loan applicant’s regular expenses and thereby assess their borrowing power. It's based on the Australian Bureau of Statistics’ (ABS) Household Expenditure Survey, which considers the typical spending behaviour of Australians.

According to UBS, 70–80% of all home loans in Australia prior to 2017 were underwritten using the HEM benchmark to estimate living expenses. As a result of the scrutiny of APRA and the royal...

APRA’s 2024-25 Corporate Plan sets out the strategic objectives that drive its regulatory priorities over the next four years, as well as outlining its agenda to address those priorities.

5 天之前 · Industry regulator, the Australian Prudential Regulation Authority (APRA), doesn’t provide specific dollar figures for banks to adhere to, so for years they were using the Henderson Poverty Index or Henderson Poverty Line and added an allowance. In 2012, the Commonwealth Bank (CBA) switched to HEM, and other banks followed.

2019年6月21日 · The Royal Commission showed the widespread use of the HEM by lenders in a range of sectors. Three out of four home loans examined by APRA used the HEM and made the assumption that the borrower’s living expenses were the same as the “modest level” in …

2018年11月29日 · ANZ CEO Shayne Elliott has promised the prudential regulator that it will reduce its reliance on a controversial expenses benchmark by the end of the financial year to just one-third of all...

2019年7月5日 · Under the new standards, implemented by the Australian Prudential Regulation Authority (APRA) on Friday, banks will have the freedom to set their own serviceability buffers. The only restriction is that the banks ensure borrowers can repay their loans if interest rates were at least 2.5 percentage points higher than they are currently.

2023年1月1日 · ADIs typically use the Household Expenditure Measure (HEM) [4] or the Henderson Poverty Index (HPI) [5] in loan calculators to estimate a borrower’s living expenses. Although these indices are extensively used, they might not always be an appropriate proxy of a borrower’s actual living expenses.