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
ServiceabilityNet surplus ratio (NSR)Looking for something else? Browse the fulllending technology glossary.
Looking for something else? Browse the fulllending technology glossary.
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