Living Expenses in the Borrowing Capacity are calculated differently depending on whether they are considered Basic/Standard (HEM) or Additional.
Why is this important?
The Borrowing Capacity Calculator will always meet the minimum required Basic/Standard (HEM) expenditure of $1500 per month, per applicant.
This means that if your applicant(s) nominate an amount of Basic/Standard (HEM) living expenses less than $1500 per month per applicant, the calculator will round up to $1500 per month per applicant.
Additional Living Expenses are always calculated on top of this.
(HEM = Household expenditure measure)
Which Expenses are considered?
When you create a calculation from an opportunity, living expenses will be repopulated into these categories:
Basic/Standard Living Expenses
Childcare
Clothing & Personal Care
General Insurance
Groceries
Higher Education & Vocation Training
Medical & Health
Primary Residence Costs
Public or Government Primary & Secondary Education
Recreation & Entertainment
Telephone, Internet, Pay TV & Media Streaming Services
Transport
Additional Living Expenses
Board
Child & Spouse Maintenance
Investment Property Costs
O/Occ Strata, Body Corporate, Land Tax
Other Insurances
Other Regular & Recurring Expenses
Personal Insurance
Private & Non-Government Education
Second Residence & Holiday Home Costs
Rent Paid
Rent