Australia tests spending, not just income. Lenders compare your declared living expenses against the HEM benchmark for your household size. Statements decide which number they believe.
They review three to six months. Every Uber Eats order, Afterpay debit, and betting transaction is categorized. Discretionary spend above HEM shrinks borrowing power directly.
Then the buffer applies. Repayments are assessed about 2-3 points above your rate. Surplus after all expenses must cover that stressed payment.
Gambling lines hurt most. Regular betting flags trigger declines at major banks regardless of income. Three clean months beat explanations.
Categorize before applying. Convert statements to Excel and total each expense group. A bank statement analyser shows the same expense-to-income view lenders build.