HPI and HEM are the living expense amounts that lenders use in their mortgage calculators to see how much you can borrow.
Some home loan lenders have started using the HEM to calculate the maximum size loan you can borrow based on your income. Using HEM in calculations means individuals can borrow more while it's the inverse for couples, that is couples can borrow less when the HEM is used.
When you apply for a mortgage loan, the paperwork will ask you to state your living expenses and how much you spend. With those figures, they will compare it to the appropriate category in the tables below and take the higher figure to use in their mortgage calculators.
Living expenses for single adults
Living expenses for couples
If you're single, is $1105 per month sufficient to meet your living expenses?
If you're a couple, is $2032 per month sufficient to meet your living expenses?