02 Jun Why HEM is important?
Finance in today’s market. The news is that lending is easing! What you should be aware of is the banks have lowered the qualifying rate so people can effectively borrow more. What they don’t say is that your qualification is not just calculated on your income, it is dependant upon you spending. What does this mean.
When I interview people for finance, we go through a detailed fact find of your expenses. In the past this was accepted as a true reflection of your expenses. Now you have to prove this by way of bank statements. The banks have what they call HEM (House hold expenditure measurement) This is a bench mark that determines what your expenditure should be. If you go over this limit you may not qualify for a loan.
More and more people are being declined for finance due to the HEM. So, what is the solution to this?
My advice is to talk to us as your mortgage broker at least 3 months prior to looking to purchase, refinance or look for a top up. If I can determine the problem, we can correct this quite easily over a 3-month period and get you in the right position for when the time comes.
This especially applies to first home buyers as we all know when we were single, we spend what we earn and save very little. If you know any likely first home buyers, I would be happy to sit down with them and sort a plan out for them moving forward.
Please also remember I have a real estate arm to PMAA and your more than welcome to check out the website to see what we do here, www.pmaarealeste.com.au
It’s really not that bad if, you have the right information and someone who knows what’s going on in theses changing times.
Please feel free to call or refer a friend or family member.
Tony Meeds, MD PMAA financial services and PMAA Real estate Pty Ltd. tonym@pmaafs.com.au or admin@pmaarealestate.com.au