Glossary entry
Household Expenditure Measure (HEM)
Household Expenditure Measure (HEM) is a benchmark of household spending often used in serviceability assessments.
Category
Lending technology
Definition
How it’s used
- Benchmark declared expenses against an assumed minimum
- Support consistent serviceability calculations across applicants
- Provide a control against under-stated expenses
Operational note
Serviceability tooling should record inputs and benchmarks used so outcomes are explainable and auditable.
Related terms
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