Hpi

[BUNDY]

Just wondering if anyone is familiar with the Henderson Poverty Line/Index??

I hadn't heard of it until speaking with a Private banker during the week and asking him if Banks still work out your DSR based on 30% of your wages.

I was advised that they do not, it is now based on HPI and he indicated that this was approx $2000 per month for a couple?

I found this to be very interesting, much better than 30%. Now makes my DSR look very healthy.

Does any one else know of this being used?

BUNDY

 

[Rolf Latham]

Hiya

The outcome of serviceability testing using the Debt to service model and the Net cashflow based model is still similar to the old DSR..

Some lenders under the old model went to max 35 others to 66.

The poverty index is a base used for living costs and that is standard amongst most lenders that use the cashflow based model, but from there there are big differences on how they treat existing debt, investment debt and tax deductability, credit cards, loadings on rates etc

ta

rolf