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Struggling to qualify for a home loan on your own? There may be some other ways to secure your first home! Here are 5 popular strategies that may help you. Property prices are still high and rising in a lot of major cities, so the dream of owning a home can sometimes feel like it’s moving further out of reach for many Australians. However, for savvy buyers, there are still plenty of ways to get your foot in the door. Thinking outside the box… here are some ideas. 1. Buy with a friend or relative Consider buying with a loved one or friend. It’s simple, you can split the cost of the deposit and the loan, which make it easier for you to both qualify for the loan with your bank and meet the loan responsibilities. Before going ahead with this option, it might be worth getting professional advice. It’s best to do so, so that you have an exit plan and preparation for unexpected events such as job loss or getting sick. Check out Horizon’s range of Home Loans or reach out to a lender today to discuss this option more. 2. Get a guarantor loan A guarantor loan means the involvement of a third party – this is usually a parent, extended relative or friend. They put  their own assets against your loan as a guarantee. This will give your lender security in case, for some reason, the loan can’t be repaid. While guarantor loans are good to help those who don’t otherwise qualify for a loan, it comes with risks for the guarantor. If you’re unable to pay the loan back, the lender can ask the guarantor to pay the loan. If they can’t repay the loan, their assets can be repossessed. At Horizon Bank we have a Family Equity Loan, which allows family members to use the available equity in their home or investment property to provide additional security to help cover any borrowing shortfalls between the deposit and loan amount. Reach out to one of our lenders today to learn more, or enquire now online. 3. Consider rentvesting If you’re not able to buy your dream home because you can’t afford it, you could consider investing in a property to rent out at a smaller cost, therefore getting a smaller loan, and renting yourself somewhere else in your preferred area that suits your lifestyle choices. This gives you the opportunity to own a property. Often, owners will use the rental income they earn to pay off their loan, and sometimes even help cover their own rental costs, as well as helping with other property-related expenses. You may want to consult with an accountant to learn about any tax benefits (negative gearing). There is a risk of over-committing with this strategy. The costs may end up outweighing the income your property generates, so it’s very important that you do the math beforehand and work out your budget. You can use our budget calculator to assist in budgeting. If you’re thinking about buying an investment property, check out Horizon’s investment loans. 4. Look farther afield Regional areas are rapidly growing and can often offer similar lifestyle opportunities at a lower cost. Consider a change in scenery if moving is an option for you, and move somewhere where a property market hasn’t caught up to the likes of major cities yet. Regional home buying has been trickier for buyers in the past, with concerns of a move somewhere regional or to the country could hamper their links to city-based employers. This in a post COVID era is an issue that has evaporated, thanks to new technology and more flexible work opportunities. 5. Take advantage of incentive schemes There are a number of national, state and territory based incentive schemes to check out, depending on where you plan to buy and/or live, that can help you get started. These include: First Home Owner Grant – Eligible first-home buyers that are planning to live in their property can get a grant of between $10,000 and $30,000. This scheme is funded by states and territories. Help to Buy – This scheme is set to arrive later in 2024, and is when the federal government offers eligible buyers a contribution of up to 40% of a home’s cost, in exchange for a proportional equity. NOTE: This scheme will only be available to a limited number of prospective homeowners. First Home Super Saver Scheme – This program allows savers to build up their deposit within super while benefiting from tax concessions. Up to $50,000 can be saved up in the borrower’s super account and they can withdraw it once they are ready to apply for their loan. Other state and territory based schemes – Different jurisdictions have slightly different approaches in helping first-time buyers, so it’s worth checking your state and territory websites to see what they can offer.   The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.   

We are seeing money mule scams become more common in Australia, with victims being recruited by criminals through fake job ads and romance offers. We’ve put together some tips so you can keep yourself safe. Movies and crime TV shows might be the place you’ve seen the work of ‘money mules’, but we’ve seen real-life examples of this illegal activity popping up in the Australian retail banking space in recent months. Simply put, money mules will transfer the money of crime – such as fraud or scams – into a third party’s bank account to hide it from the authorities. These scams are disguised as an employment opportunity or even a new romance, so unsuspecting victims sometimes get caught up in it all. Here’s how people get caught out and how you can stop it from happening to you. How money mule scams work Money mules are the middle-men that act on behalf of other criminals that are trying to hide or launder money derived from crime. In order to cover their tracks, the money mules will try to recruit new people to get involved in the transfer of large sums of money. A common way of new people being recruited is under the guise of a legitimate employment opportunity, where the employee can earn sums of money quickly by making transfers.  Another common way is through a romance scam, where a potential partner will ask their online love interest to transfer money for them. Shielding yourself from a money mule scam It can be tricky to spot these scams, as they are quite sophisticated with the fraudsters creating legitimate-looking email addresses or websites, so they don’t have as big a chance of being detected – however even if they do a good job of disguising themselves there are often some red flags. Here are some tips that might help: The old saying, “if it sounds too good to be true, it probably is”, definitely applies to money mule scams. Being offered large sums of money for minimal and easy work, is a big red flag, so beware. If you get a job offer, make sure you do your research on the company. Things to look for are their ABN, how long the company has been registered and who the directors/owners are. Be extra cautious of businesses that are listed overseas. If something feels a bit off, ask a trusted family member or friend for some advice. Another perspective is always handy as they may pick up on things you missed. If you haven’t met someone in person, or you don’t know the person, don’t send them money. Always protect your banking details and make sure you’re updating your passwords periodically. Always think before you click any links in emails or text messages. What if you think you’ve already been scammed? If you believe you’ve fallen victim to a money mule scam, it’s very important you report it to your bank as well as the police as soon as possible. The sooner you get in touch with your bank, the more likely it is that they’ll be able to stop the transactions. It is important to note however, some transactions aren’t able to be stopped – such as wire transfers. After you speak with your bank, we’d recommend contacting IDCARE – which is the national identity and cyber support service – on 1800 595 160. As money mule scams can involve identity theft, IDCARE can help you come up with a plan if that is a risk you’re facing. You can also report the scam to Scamwatch.   It is vital that you stay vigilant against Australian banking scams. By staying alert and recognising red flags, you can protect yourself against falling victim to these scammers. Money mule scams are on the rise in Australia, so be wary of any “too good to be true” opportunities or offers and keep your banking details safe. Everyone is vulnerable to scams, so everyone needs information about how to identify and avoid being scammed.  You can find more information on scams awareness on our website. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.

Do you ever feel like when you are listening to news about the economy, you have to try decipher what is being said as if it's a complex code. We get it! In this guide, Economist Nicki Hutley helps to unravel the tangled web of economic jargon so that you can decode financial news, and even any decisions you may face when it comes to work, spending or investing. Buckle up for the crash course in economic know-how! Byline: Nicki Hutley Being able to understand economic concepts is a powerful tool that you can use in making decisions when it comes to your work, your purchasing choices, and borrowing and investing money. You might hear politicians often using economic jargon, so it can also help to better understand what they are talking about. In saying this, often economists don’t make it easy to understand, so this is why we’ve put together a quick guide of commonly used terms that we feel could be useful to you.   Monetary Policy - The RBA (the Reserve Bank of Australia) will use monetary policy to try and steer the economy in the right direction when the economy is either running too hot, meaning high inflation, or too cold, meaning high unemployment. There are 3 ways they do this, but the most common which you are likely to know all about, is setting interest rates (also referred to as the cash rate, which we will explain further in the next point). Higher rates make borrowing more expensive, so people and businesses tend to spend less, which can help stop the economy from overheating. Conversely, when the economy needs a boost, like when people aren’t spending much and businesses aren’t growing, the RBA might lower interest rates. Lower rates encourage people and businesses to borrow and spend more, which can kickstart economic activity. Cash Rate – The cash rate is the interest rate that banks pay to borrow funds from other banks. It is set by the RBA board at each of their meetings. Although this sounds pretty boring, it tends to get a lot of attention in the media, and this is because the cash rate is what influences all the other interest rates, such as mortgage and deposit rates. When the cash rate goes up or down, this will typically flow through to the rate you’re charged for your mortgage, your personal loans and credit cards. Inflation – Inflation is probably a term you’re familiar with; it measures the rate at which prices change over time. The Consumer Price Index, or CPI, is the main measure of inflation. The CPI is made up of the changes in the price of hundreds of different average household goods. This includes things such as bread, fruit, meat, beer, toothbrushes, hairdresser services, school fees, BBQs, electricity, cars & petrol to name a few.Some prices will go up while others will come down in any one period. The RBA has a target for ‘underlying’ inflation, which takes out items that tend to jump around a lot—such as petrol and some foods—of 2% to 3%. When inflation is higher than this target and rising, the RBA is likely to increase the cash rate. Gross Domestic Product – The measure of the size of our economy is called Gross Domestic Product, or GDP. GDP is reported every 3 months and tells us how individuals, businesses and governments have spent and invested their money. This report covers everything from toothbrushes to roads.GDP tells us which parts of our economy are doing well, and what parts aren’t doing so well. Economists are mostly interested in seeing how GDP changes between one period to the next and whether we are in a period of growth or not. If the GDP falls for 2 quarters in a row, that is defined as a recession.Something else economists sometimes talk about is “trend growth”. This indicates how fast the economy can grow without setting off inflation. Stagflation – Stagflation is a term that was created in the 1970’s to describe a period when economic growth is low, or shrinking, yet inflation is high. Stagflation doesn’t happen very often fortunately. An example of stagflation is in 1983 when inflation hit 11%, but the economy was in a recession. Productivity – Productivity is one of the most important economic indicators. It measures how much is produced for each hour worked. We’re sure you’ve heard the saying “work smarter not harder”, well when we work “smarter” productivity goes up. This is important as productivity is one of the key ingredients for improving our standard of living. When we see a rise in productivity, we see businesses doing better and this means profits and/or wages are higher as a result. Sounds ideal right? So, how do we get productivity to grow? Increasing investments into machinery and technology that help us do our jobs more efficiently, we can make improvements to the way businesses operate and we can invest in upskilling people. Productivity can also be improved by governments, by making it easier for businesses to do business through investing in infrastructure such as roads and telecommunications. Fiscal Policy – Think of Fiscal policy as the government’s wallet and spending habits. Just like how you manage your own money to buy things or save for the future, the government uses fiscal policy to control spending, taxes, and borrowing to keep the economy in good shape. Fiscal policy is balancing what people want or need from the government (such as schools, hospitals, roads, defence and childcare to name a few) with the requirement of paying for these things through taxes – taking into account the overall effect of those decisions on the economy. A very important day for the fiscal policy calendar is the second Tuesday in May. This is when the federal government hands down its budget. When the government spends more than it receives, the budget will be in deficit leading to an increase in debt. Labour Force – The Labour Force is the number of people who are working (employed) or aren’t working but looking for work (unemployed). You’re counted as employed by The Australian Bureau of Statistics even if you work just one hour per week, and you don’t count as unemployed unless you are looking for work. If you aren’t applying for jobs or working for any reason, then you’re not counted as a part of the labour force. Underemployment – Unemployment, as previously mentioned, is the number of people actively looking for work. This is reported monthly basis as a percent of the labour force. There is a concept called underemployment which refers to the people who work part-time but seeking more hours. When you add together the unemployment and underemployment, you get the underutilisation rate. Policy makers will look closely at this rate to see if there is likely to be wage pressure, which could lead to inflation. Exchange Rate – If you’re an avid traveller, you’ll know this term very well and probably keep a close eye on it. The Exchange Rate refers to how much you would get if you were changing your Australian dollars into another country’s currency, or vice versa. If you’re lucky enough to have a trip overseas planned soon, you’ll be following the exchange rate for your destination, so you can map out costs while you are there. Another time you may encounter exchange rates is when you’re buying something from overseas (imported goods) which could a piece of clothing, a car or petrol. When the Australian dollar falls, we pay more for imports. Cryptocurrencies – Cryptocurrencies can only be accessed via computers or other electronic devices and don’t have a physical form like banknotes or coins. The most commonly known cryptocurrency is Bitcoin. They are often referred to as “cryptos”. It’s important to know that it is not the same as ‘real’ money, and is not regulated in Australia. Cryptocurrencies aren’t a very useful form of money as most sellers won’t accept cryptocurrencies as payment. Cryptocurrencies are often very volatile, compared to the Australian dollar that generally doesn’t move by much day to day.   Together, we’ve delved into the intricacies of some key economic concepts and terms that are frequently used when discussing the state of the economy and its impact on our lives. Deciphering the complexities of economics isn’t just about unravelling jargon; it's about equipping you with the knowledge to navigate the economic currents shaping our lives. I hope this explainer helps you to more confidently steer through these economic waters and traverse the complexities of our financial world. At Horizon Bank, we believe in empowering our customers with the knowledge and resources they need to make sound financial decisions. Understanding economic terms and concepts is crucial, but having a trusted financial partner can make all the difference. Whether you're planning your next investment, considering a loan, or simply seeking some guidance on navigating the current economic climate, Horizon Bank is here to support you. Visit our website at Horizon Bank or come into one of our local branches to learn how our personalised financial services can help you apply your newfound economic insights in practical, profitable ways. Let's decode the world of finance together. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.

4 TOP TIPS TO PAYING YOUR HOME LOAN OFF FASTER (without increasing your payments) Pay your home loan off faster without increasing your payments? That doesn’t sound right! Well of course paying more off your loan will reduce it but short of asking for a raise or getting a second job, most of us are working off what we receive each payday. These paying off your home loan faster tips are all about working smarter, not harder.Stick with me and I’ll give you 4 top tips on easy and fast ways to pay off your home loan quicker.You may have heard that the secret to success is to find those little hacks, those incremental improvements that snowball to achieve tremendous results. Well, this is all about finding what’s available to you and taking full advantage to benefit you financially. It’s not as hard as you’d think. 1. CHOOSE YOUR REPAYMENT FREQUENCY If you don’t specify how often you want to make loan repayments, your bank or lender is likely to make it monthly. If you’re getting paid weekly or fortnightly, change payments to that. KEY INFO: This is really important and simple information … your loan interest is being calculated on the daily balance of your loan, so the less your loan balance is … the less interest you’ll attract and you’ll eventually pay off your loan quicker. This tip and the rest below are all incremental ways that takes into consideration that Key Info and helps you reduce the length of time of your home loan and therefore pay your debt off quicker. 2. MORTGAGE OFFSET ACCOUNT Ask your lender for a mortgage offset account. This account is key to successfully paying off your home loan quicker. What’s a mortgage offset account you may be asking? Basically, a mortgage offset account is a savings account that earns no interest, the balance however offsets your loan balance. Put simply … if you had $500,000 left to pay off your home loan and you had $30,000 in your mortgage offset account, you would only pay interest on $470,000 rather than $500,000! How good is that? As an example, if you had a 6.00%p.a. home loan, that would be a saving of $1,500 in interest over a year, compared to if those funds were in a savings account earning 1%p.a. The less interest you attract means you pay your loan off quicker!You haven’t increased payments AND you still have access to your savings in the mortgage offset account should you need it.Ideally, any spare cash you have would be deposited and kept in the offset account. This leads me to tip #3 and how you can live day to day while keeping as much cash as possible in your mortgage offset account.[Learn more about Horizon Bank’s Mortgage Offset Account here.] 3. GET A CREDIT CARD Are the warning bells going off? I know this sounds counterintuitive but the idea here is to find a low rate no annual fee card that you can use daily. What this does is delay payment of your everyday expenses. Remember, your home loan interest is normally calculated daily and charged monthly. It stands to reason that you should keep has much money as possible in your mortgage offset account to offset your daily loan balance. You can achieve this by delaying the payment of your everyday expenses as long as possible. The other REALLY important part of this tip is to pay the required balance of your credit card to avoid any credit card interest. Generally, cards with reward points attract a high annual fee and interest rate. If you are wanting to minimise the cost, a no or low annual fee credit card is your go to. If your bank or lender is doing right by you, you can arrange to have the balance of your credit card paid out of your mortgage offset account automatically each month to avoid any interest.[Learn more about Horizon Bank’s low rate Visa credit card here.] 4. HOLD OFF PAYING BILLS You may be alarmed once again at the idea of delaying payment of bills but once again, this is your opportunity to keep as much in your mortgage offset account for as long as possible. Remember, your loan interest is being calculated on its daily balance. The longer you can keep your money offsetting the loan the quicker you can pay off your home loan.Your online banking should allow you to set up automatic payment of your bills from your mortgage offset account on the last day payment is required. Set and forget.[Learn more about Horizon Bank’s banking access facilities here.] SIT BACK AND RELAXIf you take a little time to put all these tips into place, you can sit back and relax knowing you’re working the system to benefit you financially. You’ll achieve the ultimate goal of paying off your home loan faster. _________________________________________This blog has been brought to you by Horizon Bank.Horizon Bank has a branch network spanning the NSW South Coast & Illawarra, Branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul & Ulladulla & Wollongong.Horizonbank.com.au    

Want to set your children up for financial success? Start teaching them basic money lessons early on to help them develop good practices to last them into adulthood. As parents, you can set your kids up for success in many ways, one of them is teaching them good money habits. Schools are beginning to bring financial literacy into their curriculums, however the basic and most important lessons often start at home. Sometimes, this can involve children observing their family’s behaviour; other times, it involves more active engagement. Here are a few ways you can help give your kids a head start. 1. Establish a rewards scheme One of the most fundamental financial lessons is that money needs to be earned. While we realise as adults there are caveats to that rule, it’s an important place to start with children. Once they realise they cannot get things they want for free, it encourages them to be more mindful of the money they have and might encourage them to start to look at ways they can earn money to save up.  A good way to put this lesson into place is to consider rewarding kids for their positive behaviours. An example is to set chores for the kids that they earn money for doing such as cleaning their room, taking the bins out or helping out in the kitchen. Keeping rewards small might encourage them to save their earnings in order to get themselves something bigger and more meaningful. 2. Incentivise putting money away As a kid it can be hard for them to see the benefits of saving their money and not spending it as soon as they get it. To make saving their money a more appealing notion, you could offer them reward or bonus money once they have saved a certain amount. For example, when they reach $10 saved, you offer an extra $5 for their efforts. It tells them more could be gained from storing money than buying something immediately. It’s also an early introduction to compounding interest. 3. Let them help at the counter or checkout To understand saving money, kids may need to become familiar with the money exchange involved in purchasing something. This can help to teach them that the things we want aren’t free and need to be bought with money. A good way to do this is to let your kids pay at the checkout at shops with cash and receive the change. It may be even more impactful of a lesson if it’s something they want to buy, like a favourite food item or a toy, and they are using money they earnt. 4. Set up a bank account Several banks offer accounts for young children to help them kick-start their savings habits. At Horizon Bank, we have a few different youth accounts to choose from. Setting one up could be a fun experience for the kids and encourage them to save by wanting to go to the bank to put money into their own account. It could also help the little ones see that money can grow over time with regular investment. They’ll likely earn some interest as time passes, which may help teach them about the power of longer-term saving. 5. Introduce goals We all know it can be hard to feel motivated to save money if there is no goal or target, you’re aiming for. Think about sitting down with the kids and asking them what it is that they want to buy, then helping them work out what’s needed to achieve that goal. You may need to discuss the goal they set to ensure it is reasonable and achievable for them, so they aren’t discouraged if they are unable to achieve it. It’s likely that you will need to be checking in with them to ask how they are going working towards their goal, what they need to still achieve and encouraging them to keep going so they stay motivated and don’t lose sight or interest in their goal. Teaching kids about money and savings is not a one-time discussion but a continuous journey filled with practical lessons and experiences. Building wealth for kids starts by instilling healthy money habits early. Children can understand the value of saving and smart spending decisions with the right guidance and tools. Encouraging savings and setting a savings goal for kids will help them grasp the concept of financial planning and delayed gratification. Incentivising saving and making it a fun, rewarding activity can reinforce these concepts. Letting them participate in real-life transactions can also enhance their understanding of money's worth and the importance of budgeting. The journey to financial literacy is a gradual process, and the team at Horizon Bank is here to help! With a range of youth accounts, we can provide the tools you need to help your child build healthy savings habits. Remember, it's never too early (or too late) to teach your children about money. The seeds you sow today will reap benefits as your children become financially responsible adults. Get in touch with us today. We’ve got the Illawarra and South Coast covered with branches located in Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula.  

What is an offset account? A home loan is a major financial commitment. This is why it’s a good idea to use products that will help you manage this commitment. Put simply, an offset account is a savings account that ‘offsets’ your loan balance and can help you pay it down quicker. Here's an example: Sarah and Tom have a $400,000 Home Sweet Home loan. They also have $40,000 in a Home Sweet Home 100% offset account linked to their home loan. Instead of paying interest on the full $400,000, their offset account balance means they only pay interest on $360,000 ($400,000 – $40,000). If their home loan interest rate is 6.00%p.a Claire and Sam would pay $2,158 interest in a month instead of $2,398 – saving them $240 just because they have an offset account. A bonus feature is that they can access their money at any time if needed. It is important to note that an offset account, while it is a savings account, does not attract any interest. Why get an offset account? A mortgage offset account with a substantial balance will reduce the amount of interest you pay on your home loan, which will reduce the amount you pay over the life of the loan. An offset account can be used just like a savings account where you can make regular deposits. The bigger the balance, the more it’s helping you to pay down your home loan. If you come into an inheritance, earn winnings or some other form of income, holding it in your offset account will ensure you’re maximizing its effectiveness in regards to your payments. You’ll be able to manage your offset account from within Online Banking and our mobile banking app. When you log in, you’ll be able to see the balance and make deposits, transfers and withdrawals. There are no withdrawal limits from an offset account and transfers are instant. What should you look for in a mortgage offset account? Not all offset accounts are the same. Some offset 100% of your loan, while some offset a smaller percentage so make sure you check the details of the account. Be on the lookout for: A 100 percent (full) offset account, rather than a partial offset Easy access to your offset funds No balance limit or penalties for withdrawal Any monthly or annual fees for having an offset account Some financial institutions may offer multiple offset accounts linked to one loan, which can help if you're saving for a few big-ticket items like another property, a holiday, a wedding or a new car. Look out for any fees associated with multiple offset accounts. How much money do you need in an offset account to make it pay? Having a substantial balance in your offset is going to maximise its effectiveness in reducing your interest costs. While you can use it as a savings account and withdraw money from it, any money regularly withdrawn from the account may not be beneficial. If the money is leaving the account as quickly as it goes in, the benefit is going to be minimal. Unless you have money sitting in this account long-term, you may only see little or no benefit. You may also want to consider the interest you would earn in a regular savings account that has an attractive interest rate. If using an offset account, will the reduced interest on your home loan be greater than the interest you would earn, if your savings in the offset account were in a savings account? Is it better to have money in offset or redraw? Offset and redraw facilities offer the same savings concept but are different in how they work. They both can help you pay off your loan earlier by reducing the amount of interest you pay on your home loan. Both are generally available on most standard variable rate loans. An offset account works like a savings account. You can have your pay deposited there, link a debit card to it, and make regular deposits and withdrawals. Alternatively, a redraw is a loan feature. You can only use your redraw if you have made additional repayments to draw from. Making extra repayments into your loan can increase the equity in your home, reduce your loan repayments and will help keep extra savings out of sight, out of mind. Many loans now have a redraw feature that allows you to make additional repayments to your loan. Some lenders may have a redraw minimum or a fee for using the redraw feature. You may be able to use an offset account and the redraw feature on your loan, it doesn’t have to be one or the other. Ultimately, which one you prefer to use comes down to how you manage money. If you need discipline and don’t want to access the funds as you would from any other account, a loan redraw facility may be the best option.   At Horizon Bank, we’re here to help you with your personal banking needs. Get in touch with our friendly team today and let’s chat about your home loan and investment loan options. Speak to a real local person with branches conveniently located in Albion Park, Bega, Berry, Bermagui, Thirroul, Wollongong, Ulladulla, Moruya, Merimbula and Nowra.      The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

The process of buying a home can be stressful, and an auction process can seem quite daunting… but it doesn’t have to be! Auctions are often a common rite of passage to owning your first home, going into it prepared with forethought and strategy can help maximise your chances of success (without having to pay too much). If this is your first home buying experience, we’ve got 10 tips for you to help you on your journey to acing your first auction, not missing out or paying too much and getting that dream home! 1. Do your homework. When preparing for a real estate auction, research is key! Here are a few things you can do: Take a look online at recently sold listings in the area so you can better understand the prices at which similar properties have sold for.  Walk around the neighbourhood and if you have the opportunity, speak to some of the neighbours about the area.  Attend other open homes for nearby properties. These sorts of activities can help you better understand the home's location and market value and assist in deciding a suitable bidding range for the auction.  2. Obtain a professional building report.  It's important to fully understand the condition of the property and what you’re bidding on, so getting a thorough onsite inspection of the property as well as obtaining a professional building report is a must. If the building report doesn’t come back as favourable, you’ll be able to walk away before the bidding begins. Alternatively, you could use this information to set a lower bidding limit. 3. Set a budget. Establish a clear budget before stepping into the auction. Remember, you need to consider more than just the bidding price. There are additional expenses such as stamp duty, conveyancing costs, furnishings and any renovations that need to be taken into account. It’s very easy to get over-excited at an auction, so it’s key that you set a maximum bid amount that aligns with your financial capabilities … and stick to it. 4. Apply for financing pre-approval and pull your deposit together. Pre-approval for a home loan is a type of preliminary approval from a lender. Before you start bidding at an auction, you need to approach your lender to get pre-approved for a loan so that you can be confident in knowing you have finance to pay for your new home should you become the successful bidder. This will show you how much you can comfortably afford based on your income and expenditure.  You will also need to ensure you have your deposit saved and ready to transfer if you are the winning bidder at the auction. Get fast pre-approval with Horizon’s quick loan application turnarounds! Enquire with your local lender now. 5. Understand the auction process. Auctions are typically carried out by a real-estate agent, who will act as the auctioneer, and are subject to strict rules. Before an auction, the seller of the property will nominate a reserve price, this is not usually made public. During the auction the hopeful buyers will compete to put in the highest bid for the property. Auctions are fast paced so it’s important to make sure you’re keeping track of the competing bids being placed and stick to your budget. If the reserve price is met and bidding continues, the home will be sold at the end of the auction however, if the bidders don’t reach the reserve price the auctioneer might ‘pass in’ the property, which means it is not sold. Another important piece of information you need to consider before diving into an auction is that if you are the successful bidder, there is no cooling off period or time to change your mind about the sale. 6. Familiarise yourself with the auction rules. As mentioned above, some auctions will have specific rules or procedures. Things such as requirements for registration, bidding increments and payment methods. Make sure you get a copy of the auctions terms & conditions to review, that way you can be prepared to follow the rules. 7. Thoroughly examine the sale contract. In order to protect yourself against any potential risks that come with buying the property, obtain a copy of the sale contract and show it to your solicitor or conveyancer for review prior to the auction. They can review the contract and explain any risks that may come with purchasing the property. 8. Attend other auctions as an observer. If you want to try to understand the dynamics and pace of an auction process, it’s a good idea to attend some auctions just to observe. This will help you get a feel for the auction process before you go in as a bidder. 9. Bid strategically. There are a few tailored bidding tactics that you can use to maximise your chances of success at an auction, such as establishing dominance by bidding early, bidding incrementally so you can scope out the competition or waiting until the last minute to jump in with a decisive bid. You may need to adapt your strategy based on the behaviour of the other bidders or the dynamics of an auction on the day. 10. Enjoy the experience. Although it’s important to be prepared, strategic and level-headed at an auction, you should also try to enjoy the experience! Auctions are exhilarating and whether you win or lose, each time you participate in an auction you will gain valuable insights and lessons for the next time. Every bid you make brings you closer to owning your own home or investment property! Celebrate your successes and learn from your mistakes. We know you’ll get there!   Although it can seem daunting participating in your first auction, it can also be an exhilarating and rewarding experience as long as you go in with the right mindset and preparation. It’s important to remember that success at an auction isn’t just about winning, it’s about securing the right home at the right price and time for you. By following the tips above and doing all the right preparation, setting your budget, staying calm under pressure, and observing auction protocol, you’ll be on the path to acing your first auction! These strategies will enhance your chances of success. As you step into the world of auctions, remember that financial readiness is critical. Horizon Bank ensures you have all the financial support and advice you need to make confident bids. Whether you're looking into securing a loan for that must-have item or seeking advice on managing your finances post-auction, our team at Horizon Bank is ready to assist you. Don't let financial uncertainties hold you back from acing your first auction. Visit us online or drop by your nearest branch to discover how we can help you make your auction experience seamless and financially sound. Let Horizon Bank be your partner in navigating the exciting world of auctions. Start your journey with us today! Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong.

Planning Ahead: How to Discuss and Document Your Final Wishes Are you planning ahead and preparing for the future? End-of-life planning is a topic that may seem daunting and many shy away from, but it’s an essential part of life. By discussing and documenting your final wishes, you can ensure that your desires for your life celebration are fulfilled, and in turn ease the burden on your loved ones in a difficult and challenging time. At Horizon we have created a Final Wishes Worksheet, that will be introduced through this post, which can help you facilitate this important conversation and provide guidance on how you would like your life celebrated. The Importance of Discussing Final Wishes Being able to discuss your final wishes with your loved ones is very important as it can provide clarity and peace of mind for both you and them. End-of-life planning is often overlooked in life planning although such an important aspect. It is especially reassuring that in a time of grief, after having these conversations, your family or friends can avoid the stress of having to try make all the decisions in preparing your final arrangements during challenging times. Overcoming the Challenges We understand that bringing up the topic of end-of-life planning with your family and friends can be a challenging conversation to start. Start by choosing a calm, comfortable setting and be open about your intentions. It helps in starting this conversation to acknowledge the discomfort that may come with it, to make your family and friends feel at ease that is difficult for all parties, then go on to emphasise the practicality and emotional benefits of you all having this discussion. Documenting Your Wishes As previously mentioned, we have a Final Wishes Worksheet that we have designed to make documenting your wishes straightforward and easy to interpret for your loved ones. The worksheet is thorough and covers many aspects that if not provided, your loved ones may struggle making decisions about. By having your wishes in writing, it removes any ambiguity about your preferences for your end-of-life arrangements and provides a straightforward reference for your loved ones when they may need it most in their time of grief. A Step-by-Step Guide to Using the Worksheet The worksheet covers various aspects of end-of-life planning, ensuring the majority of what your loved ones are required to provide information on, they will have. As you fill it out, it’s important to take your time and reflect on each section. It may be overwhelming to be putting thought into each topic in such detail, so take your time and ensure you are comfortable with your preferences for your final arrangements. If needed, it may be helpful and less daunting to have your loved ones assist you with the worksheet or even all of you do your own at the same time. It’s likely to spark some interesting insights. The ability to be thorough and thoughtful is crucial in ensuring your wishes are clearly articulated and easy to understand.  Sharing with Loved Ones Once you have gone through and completed the worksheet, it’s time to share it with your loved ones. You may want to go through the worksheet together so you are able to answer any questions your family and friends may have, which ensures that in the future they are clear with your final wishes. Storing the worksheet in a secure yet accessible location is very important. A suggestion is to keep it with your important documents file along with your Will, passport, birth certificate etc. You may wish to also share the worksheet with your attorney in addition to your family and friends. The worksheet needs to be located, in the event your loved ones require it. Having this worksheet accessible will bring you peace of mind knowing your family can easily access this information when needed without having to worry about where to find it. Supporting Your Plans Financially The best way to ensure your final arrangements are carried out as you’ve planned for, is to support them financially. Financial planning is an integral part of end-of-life arrangements, so you will need to think about ways you can provide this support for your final plans. Some ways to do this is to consider a special rainy day savings account that could be used for any kind of emergency or having an insurance policy that will be able to financially support your plans, easing the burden on your loved ones. Although often an overlooked part of life planning, it is crucial that you document your final wishes and have the conversations with your family and friends. Don’t leave your final wishes to chance and ease the burden on your family and friends when it comes to the difficult time of planning your life celebration. Our Final Wishes Worksheet provides you with a straightforward tool to assist in facilitating these important conversations. One of Horizon Values is we’re all about our customers. We’re here for you. At the most difficult time for you and your loved ones, we believe the Final Wishes Worksheet takes some of the pressure off decision making. You can access our Final Wishes Worksheet here and start the conversation. Horizon Bank has a branch network spanning the Illawarra and South Coast with offices at: Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula.  

Fixed vs Variable: Pros and cons of fixing your interest rate Are you in the market for a loan but aren’t sure whether to take out a fixed of variable rate? Choosing between fixed and variable interest rates can be complex, especially for first-time borrowers. This blog aims to simplify this decision-making process by providing in-depth insights into both options, which will help you understand how these interest rates work and which best fits your financial situation. Understanding Interest Rates Interest rates play a crucial role in determining the overall cost of your loan. Banks will normally offer a fixed rate of a period of 1, 2 , 3 or 5 years. So the interest rate remains unchanged throughout whichever period you choose. This offers you stability and predictability in your repayments. Your repayment stays the same regardless of market changes. At the end of the fixed period, the rate normally reverts to a variable rate or you can choose to re-fix.Conversely, variable interest rates can fluctuate in response to market conditions. This could mean that your repayments decrease when market rates fall, but they also could increase if market rates rise. The Pros and Cons of Fixed Interest Rates Choosing a fixed-interest rate loan means that you’ll know exactly what your repayments will be for the fixed period you choose; this is normally less than or equal to 5 years. This can make it easier for you to budget and plan for your future. However, a major drawback of a fixed rate is their lack of flexibility. This means if the market rates fall, you will still be required to pay the higher rate. Additionally, fixed-interest rate loans may have restrictions on whether you are able to make extra repayments or pay off the loan early. It is likely to have a fee to break the fixed rate contract. The Pros and Cons of Variable Interest Rates A variable interest rate offers more flexibility than their fixed counterparts. If market rates decrease, so will your repayments, potentially saving you money. Many variable-rate loans will also allow extra repayments, allowing you to pay off your loan faster. On the downside, variable-rate loans are unpredictable. If the market rates rise, so will your repayments, potentially stretching your budget. Fixed Interest Rates with Horizon Bank At Horizon Bank, we offer competitive fixed-rate loans. By choosing a fixed-rate loan with us, you can effectively manage your finances by knowing exactly what your weekly, fortnightly or monthly repayments will be. Our team of experts are always available to guide you through the process and present the loan options that best suits your needs. Horizon allows up to $30,000 in extra repayments each loan anniversary year, which helps reduce the term of the loan. For extra repayments made on a fixed-interest rate loan, Horizon allows you to redraw on those funds if you require to do so down the track free of charge. Variable Interest Rates with Horizon Bank At Horizon Bank, our variable-rate loans are designed to provide you with flexibility and potential savings, which is ideal for both experienced buyers and first-home buyers. Benefit from a variable interest rate and take advantage of flexible weekly, fortnightly or monthly repayment options – whichever suits you best – as well as the allowance of extra repayments without penalty. Making Your Decision The choice between fixed and variable rates depends heavily on the current Australian economic climate. For example, a variable rate might save you money in a falling market, but in a rising market a fixed rate could offer you more stability. Your personal finance goals should be the primary driver behind your decision of whether you value stability or flexibility. We understand that choosing between a fixed and variable interest rate is a significant decision that can greatly impact your financial future. By considering the pros and cons of each option you can make an informed decision that aligns with your financial goals and circumstances. Contact us to explore your loan options, you can have a chat with one of our experts today. We’ve got the Illawarra and South Coast covered with branches located in Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula. Regardless of where you live, reach out to us by filling in an online loan enquiry form and we’ll assist you over the phone and email.

In this post we’ll look at the steps you can take to creating a personal budget. Creating and sticking to this will teach you discipline with your money and help you to reach your savings goals sooner. It will also enable you to view your income differently which could see you with a surplus of funds rather than living paycheck-to-paycheck. Putting your budget together This can be done simply in an excel spreadsheet. List your income at the top, then list all of your expenses in categories where possible. Total up your expenses and minus this cost from your total income. If you have money left over, great work. If you find yourself in a minus, keep reading for tips on how to get back in the green. Anticipate Changes – before making a budget, think ahead for any large changes that you can reasonably anticipate, like taking out a new mortgage or other personal finance expenses  and incorporate it into your plans as early as possible – even if you do not know what the value will be.  Don't forget to include extra income as well – for example, any anticipated raises or money from a tax return. Make educated guesses – When you don't know the future value of something, make conservative estimates. Make expenses that bit higher, and income a bit lower. This provides a cushion in case things do not go as planned.  Review Your Spending  As previously mentioned, making a budget starts with creating a list of all your expenses and their costs. This includes loan repayments, credit card payments, money spent on groceries and bills plus any entertainment expenses. You can use our budget planner calculator to get started. Look for ways to cut back. This is the hard part! The easiest way to cut back on your expenses is to list them in priority order. Which ones are needs versus a want? If they’re all needs, consider cheaper alternatives. For example, look for a cheaper plan with another internet provider or share the cost of streaming services with a family member or friend. Be Accountable  Good financial management is all about ownership. A budget is only useful if you stick to it. Share your success and setbacks with your significant other, family member or close friend who will encourage you to stay on track with your spending. Make it easy for yourself by printing out your budget table and keeping it close by to refer back to. Sometimes a hard copy is easier than starting up your computer and loading your budget software. If you use a budget planner app even better. Our phones are always within easy reach! Have a purpose and goal in mind  This will help you determine how much you may need to save for and how quickly. Decide if you’re saving for something specific such as a holiday or a new car, or if you’re just trying to cut back on excess spending. Helpful budgeting tools  Our budget planner calculator is a free online tool that is convenient to access and easy to use. Once you’ve got your list of expenses, put them into the calculator which will tell you if you will end up with a surplus or shortfall after considering the income details you provide. This can also be accessed from your smartphone or tablet. Have a plan for any excess funds you find yourself with. It is quick and easy to open a savings account or term deposit online where you can deposit your money into straight away to avoid temptation. If you are still finding yourself in the red, make sure you have all of your expenses properly listed. Get someone to check over your budget for accuracy. If you are still experiencing issues, seek help from a financial counselor about managing debts. Get in touch with the friendly team at Horizon Bank today and let us help you on your savings journey. Horizon Bank has a branch network spanning the Illawarra and South Coast with offices at: Thirroul, Wollongong, Albion Park, Berry, Nowra, Ulladulla, Moruya, Bega, Bermagui and Merimbula. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.