What living costs do bank assume?

[GoAnna!]

When banks are calculating servicability what living costs do they assume for a family of two adults and two children. How much variance is there between banks?

Thanks!

 

[boomtown]

Its a joke.

For me as a single adult they assume $400 per month (excluding rent). I wouldnt make it very far on $400.

 

[Belu]

you sure boomtown?

It used to be $1200/month from memory for a single person from memory with RAMS.

 

[Rolf Latham]

Hiya

most use something along the lines of Henderson Poverty Index


1100 a month for a single

1607 for a couple

2400 for a couple + 2 kids

ta
rolf

 

[boomtown]

Well its what Esanda used to assess me for a rollover of a car loan last week. I just laughed and said fine - use that if you want. Maybe they are on crack.

 

[RumpledElf]

2400 for a couple + 2 kids

Good lord, when we had one property we lived off $1000 less than that for the 4 of us, including all the house related expenses. Now we have two houses its only $500 less. Wouldn't it be nice if they actually factored in that some people are cheapskates and education and water in some areas is free ...

Also explains why our regular bank said that our income was actually too low to service a loan at all.

 

[GoAnna!]

Thank you Rolf. Enormously helpful.

Hiya

most use something along the lines of Henderson Poverty Index


1100 a month for a single

1607 for a couple

2400 for a couple + 2 kids

ta
rolf