Living expenses!

Living Expenses

What is this?

When you apply for a mortgage, the Lender uses Living Expenses as an important factor in calculating your ability to service your borrowings.

The Household Expenditure Measure is a method used by a large percentage of Lenders in the market as a benchmark tool in using this criteria to help establish the level of borrowing capacity of the loan applicant.

Factors in establishing these expenses will include basic costs.

   -  where you live

   -  family/household structure (single, couple or a family)

   -  dependent children

   -  cost of food, phone, power, transport and all other basic living necessities

   -  extras.

When you make an application for a mortgage, the Lender may require detailed declarations, including bank statements to support your expenses as you have listed.

The Lender is therefore better able to assess your application with your documentation combined with your household income to establish the repayment options available to you.