12. Serviceability

Living Expenses

We use the higher of Income Based HEM or borrowers declared figure.

Income-based HEM determined on:

  • Household earned income, which is: total gross income plus total rental income (shaded at 50% or 70% depending on type) less negative gearing amount, plus any untaxed income.
  • Marital status
  • Number of dependants (For joint custody, the higher of Child support or HEM to be used)

For Specialist and Specialist+  products, accounts where borrowers conduct their day to day transactions are to be reviewed to support living expenses used.  The higher of income based HEM, declared or assessed figure will be used for servicing.

Underwriters to also review statements for undisclosed debts, gambling, unexplained large transactions.

Unique and/or ongoing expenses not covered by HEM categories. Expenses such as Afterpay and ZipPay are to be listed as liabilities if ongoing.

Loan Repayments and Credit Cards/Overdrafts

Loans with other financial institutions assessed at actual monthly repayment amounts.

New and existing Bluestone loans assessed at stressed monthly repayment amounts.

Credit Cards and Overdrafts monthly repayments calculated at 3.8% of the relevant limit.

Stressed Repayments on other Mortgage debts

Repayments calculated based on other loan limits, using the higher of actual rate + 2.5% or Bluestone floor rate of 5.25% with P&I repayments over the loan term used for our application.

All income and debt will need to be apportioned accurately as per percentage share declared and verified, so that the correct tax, shading and negative gearing can be appropriately applied in our system/servicing calculator.