The major bank has revised the manner in which it calculates the HEM benchmark, following on from changes implemented by Westpac.
ANZ has updated the method by which residential rental income is considered for the Household Expenditure Measure (HEM) while also changing its gearing calculations.
The new calculations where rental income is involved are the following:
The changes are effective for new applications submitted from 26 August.
ANZ’s changes follow amendments made to Westpac’s HEM calculation.
Earlier this month, Westpac stated that to ensure expenses are captured “more accurately”, it would update and add new expense categories to “reflect industry guidelines” on the HEM values used for customer expense benchmarks.
Accordingly, Westpac made the following changes:
Westpac’s changes took effect on 20 August.
[Related: Westpac revises home lending policy]
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