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Household Expenditure Measure (HEM) Update

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Living expenses are incorporated into serviceability calculations and include the cost of food, clothing, motor vehicle running costs, rates, insurances, property maintenance/repairs, telephone, gas, electricity, transport, fares, entertainment and basic education. For the purposes of assessing an applicant’s capacity to repay the Bank, the higher of Household Expenditure Measure (“HEM”) and Customer Declared Expenses will be used as living expenses in serviceability assessment.

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