Blog

What is a Loan? A loan is an agreement between two parties, where money is given in exchange for repayment of the loan principal amount plus interest. Loan terms are agreed to by each party before any money is advanced. A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card or personal loan. There may be additional costs for taking out a loan including establishment fees, annual or monthly fees and solicitor or conveyancer fees if requires. A loan can be set at a fixed amount, or it could be available as an ongoing line of credit up to a maximum amount. There are various types of loans available including secured, unsecured and commercial a loans. Horizon Bank has been serving customers since 1964. You can learn more about our history on our website. Our goal is simple: To provide our members with the highest level of service while offering competitive loan rates and terms. We know the importance of accessing quality financial services. That's why Horizon Bank offers several ways to access money when you need it. Whether you're planning for an upcoming holiday, paying off debt, or buying a car, Horizon Bank has what you're looking for. At Horizon Bank, we offer a range of home loans, mortgages and home loan refinancing options at competitive rates. We can assist in helping you achieve your financial goals in a way that suits your needs. Compare our home loans Our experienced team of professionals will guide you every step of the way. We understand that life happens, and when it does, we'll also work to find solutions for unexpected situations such as changes to employment or family dynamics. Horizon Bank understands that sometimes things come up that require immediate attention. That's why we have 24 hour, 7 days a week online banking access. You can check balances, transfer funds, pay bills and manage your loan. If you prefer to speak to a real person, we've got friendly staff who are ready to handle your queries. Contact us today! Key Points: A loan is an agreement between two parties where one gives up something (the principal) in return for receiving something else (interest). Loans can be for a fixed amount or a continuing line of credit. A line of credit gives consumers access to cash at competitive rates without paying back the entire balance upfront. Why do you need to understand loans? Loans are a form of debt incurred by individuals or entities. A bank lends money (or credit) to use at their discretion. If you agree to these terms, you're agreeing to pay back the loan plus finance charges and interest. This is why it’s so important to understand loans. Let's take a look at how the loan process works. When one applies for a loan, a lender might ask borrowers questions including the purpose of the loan, whether they've had any previous loans, if there are any liens against them and what their existing expenses are. A lender may require collateral to secure a loan. Examples of collateral include savings, an existing mortgage or a motor vehicle. Before approving a loan application, an experienced lender will evaluate a borrower's credit history and income level. Depending on the applicant's creditworthiness, the bank either refuses or grants the loan request. When a bank denies the loan application, they will generally provide a reason. Once an application has been submitted for approval, both parties agree upon its terms. After receiving the funds from the bank, the borrower has to pay back the entire amount plus any additional fees and interest charged by the bank, in either weekly, fortnightly or monthly instalments. What types of loans does Horizon Bank offer? Loan Types Home Loan A home loan, also known as a mortgage is an amount of money borrowed from a lender (usually a financial institution) so that one may buy property, such as a house, apartment or townhouse. At Horizon Bank, a mortgage is usually for a fixed length of time (25–30 years). A minimum monthly repayment is calculated on the principle amount and the interest rate. A loan agreement between the lender (Horizon Bank) and borrower will specify when repayments must occur, which may be weekly, fortnightly or monthly. Find out how to choose a home loan Investment Loan An investment loan is simply another name for any type of loan used to fund the purchase of an investment property. Horizon Bank offers both principal and interest and interest only investment loan. With principal and interest Investment Loans your monthly payments go toward both your interest costs and your loan balance. You will, over time, pay off the debt. An interest-only loan, is a loan where you pay only the interest on the loan and not principal. This will mean lower monthly payments for a fixed period but you’re not paying down the debt. Eventually, you're required to pay off the full loan either as a lump sum or with higher monthly payments that include principal and interest. Five things to consider before purchasing an investment property Car Loan Horizon’s Car Loans are loans taken out so that people can buy cars, motorbikes, caravans & boats. Car loans allow you to borrow a specific sum of money to buy a new or used motor vehicle or other motorised recreation vehicles listed above. You repay the bank by paying back some of the principal amount plus interest. To repay the car loan, you must complete the repayments over the term of up to 5 years, agreeing to repay the loan usually in monthly payments. At Horizon, you can repay the loan earlier than the fixed period without penalty. You’ll pay back not just the principal but also any interest charges too. Our Car Loan Calculator works out roughly how much the repayments are over the term of the loan, but it’s ideal to have a chat with one of our professional lenders. Here’s how to apply for a car loan with us Personal Loan Personal loans are a way to borrow money for personal use. A personal loan gives you access to an immediate lump sum of cash when you need it most. Personal Loans are unsecured. That is, no collateral is required because loan amounts are generally relatively small (relative to a home loan for example).Personal loans are usually, but not limited to, used for consolidating debt, paying for a holiday, or buying whitegoods and furniture etc. Borrowers then repay their loans by paying off the principal balance plus any accrued interest at regular intervals throughout the life of the loan. There may be additional charges, such as an administrative charge, monthly fee or late payment penalties if you don't repay your loan by its due date. What you can buy with a personal loan Credit Facilities Visa Credit Card information A credit card is a way to borrow money or access ‘credit’ from a financial institution. The credit card has a set amount of funds called a 'limit’. This limit is set when you apply for a card. Credit cards are widely accepted and can be used to make purchases over the counter, online or over the phone. Like all debts, you need to repay the credit card. A Credit card has an interest rate, which apply to amounts that you haven’t paid back. There’s a minimum monthly repayment and cards may attract an annual fee. It’s important to consider whether you can afford the repayments on a credit card before you apply. Tips on applying for a credit card Line of Credit At Horizon Bank, our line of credit product is called a Budget Overdraft. This line of credit has a set limit, but is a continuing credit product, which means there is no set end date you need to repay it by. You only pay interest on what you use. For example, if your line of credit is set at $5,000, and you have only used $2,000 in the month, you will only pay interest on $2,000. Loan Calculators Loan Repayment Calculator  Personal Loan Calculator  Car Loan Calculator Borrowing Power Calculator Purpose Loan type Buying furniture Budget Personal Loan Going on holiday Line of Credit Upgrading your car New Car Loan Buying a home Home Sweet Home Loan Buying an investment property Value Plus Residential Investment Loan If you’re looking to purchase a home, investment property, car, motor bike, boat, caravan or any other item that requires a loan, contact us today! We offer quick answers on applications, competitive rates and flexible terms so you can make it happen as soon as possible. As a customer-owned local bank on the South Coast and Far South Coast, we work hard to earn your trust. That means we’ll always do everything to ensure you receive the best customer service possible. If you ever need someone to talk to about anything related to your account, please get in touch with our friendly and local based team. 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. 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. 

Buying an investment property can be an overwhelming process, especially if it is your first time researching property investment. That’s why we have put together the top 5 things you should consider when making this purchase for your future. Clarify your goals and do your research Smart property investment starts with asking yourself, why am I investing in the first place? Will buying an investment property affect my lifestyle and current circumstances? You’ll need to decide whether you’re buying to make an income now, or as a longer-term investment. Researching different property types and suburb profiles will help you clarify what you’re after. When you have found a property you're interested in you can then research the property’s potential for capital growth, rental income and ongoing costs. Choosing a property type Apartments, units, townhouses and smaller homes are attractive options for investing in property. If you’re keen to renovate, find a property that could use a little TLC to increase its value over time. Properties that have a wide appeal and many features will make it more attractive to potential buyers. For example, a property near shops, transport and with a garage and second bathroom will appeal to families, retires, couples and single professionals. Where to buy? Buying in a familiar area you have grown up in or lived in for a while will take you less time to research. Speak to local real estate agents for their take on the area and check recent sale prices to give you an idea of what you can expect to pay for local properties. New suburbs and estates are growth areas where there is potential for capital gains and higher rental yield, that is properties with higher rent compared to the property value. Find out about the vacancy rates in the neighbourhood. A high vacancy rate may indicate a problem with the area which could be anything from crime to inadequate infrastructure and public transport. Buying property in an area with high vacancy rates could make it harder to rent the property out, or sell it in the future. Look at the local government website to find out about proposed changes in the suburb that may affect future property prices. Things like new developments or zoning changes can affect the future value of a property. Consider the costs Aside from the purchase of the property, there are initial and ongoing costs that first time property investors need to be aware of. We’ve broken them down for you here. Initial Loan deposit Loan Establishment Fees – these may or may not be applicable to your investment loan. Mortgage Insurance – only payable if your deposit is less than the amount required by your financial institution. Utility Connections Stamp Duty - Stamp duty costs will differ from state to state and will depend on the purchase price of the property. Use our stamp duty calculator to estimate stamp duty costs. Legal Costs – transfer of ownership of the property title will require a solicitor or conveyancer.                 Ongoing cost of investing in property Insurance (Building & Landlord) - Building and landlord insurance will not only protect you from unforeseen building damage, but also common tenant problems i.e. damage or the tenant refusing to pay rent. Check tenant damage is included in your cover. Yearly Mortgage Fees – these may or may not be applicable to your investment loan. Land Rates                                 Body Corporate Fees – may be applicable if you have bought a townhouse, villa or unit. Mortgage Repayments – if rental income doesn’t cover all of your repayments, you’ll need to budget to cover the shortfall. Utilities - You can opt to pay only the connection services. Discuss the best option with your property manager. Property Management – property management fees can vary, they generally charge a letting fee and a management fee based on a percentage of the gross weekly rental. This is usually between 5 – 12 percent. Repairs - As the landlord, maintenance is your responsibility. Some repairs are tax deductible so it’s a good idea to keep all receipts and invoices. When is it the right time to buy an investment property? The best way to invest in real estate is to find the right time for you. This will depend on your affordability and borrowing power. If you have extra savings, have found a property at a reasonable price and mortgage rates are low, it could be an opportune time to buy an investment property. Having equity in your home will also appear favourable to a lender as you have reduced the amount of debt owing. Speaking to a financial planner and accountant to assess your situation is a good place to start to help with decision making. Let our team at Horizon get you on the path to property investment success. Get in touch with us today and let us help you on your journey. 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. 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.

What is a credit card? A credit card is a continuing line of credit used to make everyday purchases. They come with interest free periods which is a great way to take advantage of buying now and paying later. What is an interest-free period? The interest-free period is the number of days from the day of purchase to the payment due date. This period will vary depending on the date of purchase and the number of days in the months applicable. An example is provided below.  Our credit card offers up to 55 days interest free on all purchases made. Interest only applies if payment isn’t made in full. Why would I use a credit card? Credit cards can be used for every day purchases such as groceries and petrol or for larger purchases like a new TV. They’re also used for overseas travel and use in motels, hotels and cruising. What types of credit cards are there? There are many different types of credit cards available. When looking for a credit card, consider the following:  Introductory rates  Standard interest rate  Annual fee  Card fees Some credit cards come with reward points which can be an effective way to benefit from regularly using your card. Used the right way, credit card rewards can earn you points to go towards your groceries, gift cards or even flights and a holiday. However, these credit cards generally carry a higher annual fee and/or purchase interest rate. Before signing up to one, it’s important to understand how they work and whether the ability to earn rewards points will make any extra costs worthwhile. If you’re not interested in earning reward points, a low rate credit card may better suit your needs. Horizon Bank offers a low rate credit card because we have our customers best interests at heart.​ What documents are required for a credit card application? Payslips and other sources of income are usually required, plus any evidence of debts and liabilities.When you apply for a credit card, your lender will discuss with you what is required for your application. Talk to a Horizon Bank lending specialist about applying for a credit card today. Or you can check out our budget planner calculator to see how credit card repayments will fit in with your expenses. 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. 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. 

Popular Personal Loan Uses A personal loan can help you achieve your financial goals. Whether it’s to take back control of your finances by consolidating debt or achieving your vision for home improvement. Wondering how you could use a personal loan? We share three ways in our latest post. We’ll also touch on the difference between a secured personal loan and an unsecured personal loan. Making home improvements Home is definitely where the heart is and that also means it is important not to put off updating the spaces that need it. Any time is a great time to refresh your home and make improvements to those rooms that no longer suit your needs. If you’ve got an outdated kitchen, or a drab and dreary bathroom, a personal loan can help you fund the costs of renovating these spaces. If you can see yourself working from home long term, properly fitting out a study or home office may be a great idea to create a productive environment. If you’re not quite ready to begin knocking down walls, purchasing new furniture can lift a room and give it a contemporary and refreshed feel. Consolidating debt Having multiple loans, credit cards and store cards makes managing repayments tricky. Instead of paying off multiple debts at high rates of interest, you may want to consider a personal loan for consolidating debt. This is where all of your debts are brought together into one loan. When you consolidate your debts, you have one loan and one repayment instead of multiple repayments that may seem overwhelming. Using a personal loan to consolidate debt helps you better manage repayments more effectively. It also allows you to budget and save more effectively. Read more about debt consolidation. Ask us about debt consolidation Purchasing new appliances If you’re in a situation where you need to suddenly buy a new washing machine (or other appliance) but don’t have the funds available, a personal loan can help. We can generally provide an answer on a loan application within one business day, so you won’t be left high and dry. With a personal loan, you can purchase major household appliances and electronics immediately, rather than waiting months to save up for them. Be wary of quick finance approvals from small lenders that offer interest free loans or other incentives that seem too good to be true. You could find yourself in more debt which will adversely affect your credit score if you’re unable to repay. Whatever you're planning to do, a personal loan from Horizon Bank could be the perfect way to make things happen. To find out more about our different personal loan options, get in touch with one of our local branches today and see if there's one that's the right fit for you. View our Personal Loans How Personal Loans Work If you’re ready to update your kitchen, bathroom or refresh another part of your home, you can easily apply online here. Remember, personal loans are also a great way to consolidate debt. If you have many store cards, credit cards and other personal loans at other financial institutions, consolidating them into one easily manageable loan may be in your best interest. Send us an enquiry and a lender will be in touch to discuss your personal circumstances and current loan rates. Like any loan, when you apply for a personal loan you’ll be assessed against eligibility criteria to ensure you can meet your loan repayments. Once your personal loan has been approved, you've accepted the offer, and all loan conditions have been satisfied, your loan account will appear in your Online Banking. Once the loan is funded and appears in your Online Banking, you’ll see when the first repayment is due. You can make payments weekly, fortnightly or monthly. Making repayments line up with when you receive your pay is a good way to ensure you always meet your repayment obligation. Secured personal loan options You can secure your loan with the equity you have in your home, a vehicle or with savings you already have. A secured loan will give you a lower interest rate which means your repayments will be lower as well. You may be able to borrow more because you are using collateral to secure the loan. If using an asset to secure your loan, there may be value assessments and additional proof and documentation that needs to be organised before your loan is funded. Keep in mind, that the amount you can borrow may not be one-to-one with your assets value. For example, using a vehicle worth $30,000 as security may not result in a $30,000 loan. View our Secured Personal Loans Frequently Asked Questions What can I use my loan for? You can use a personal loan for going on holiday, purchasing new furniture or white goods, undergoing home renovations, consolidating debt or any worthwhile purpose. What documents do I need to apply for a personal loan? Documents include but are not limited to providing evidence of income, which usually means your most recent pay slips. Proof of identity and citizenship or residency as well as a list of expenses, which can be identified from your statements. How long does it take to apply and how fast can I get my loan? Completing a personal loan application online is convenient and easy. Having the right information on hand will help you complete your application quickly. We pride ourselves on giving fast answers on loan applications, so long as all the relevant documentation has been provided and the applicant meets credit criteria. What will my repayments be? Your repayment amount will depend on how much you borrow from us, your interest rate, and how often you make repayments. Use our repayment calculator to give you an idea of what the repayments would be. It’s always better to have a chat with an experienced lender who can lead you through the process and answer any questions. Contact us and one of our lenders will be in touch. Speaking with a lender is the best way to determine the right loan for you. 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. 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.

Your complete guide to buying a home The property market and housing affordability is tricky to navigate for first home buyers or any home buyer no matter how many times you’ve done it. Keep reading for helpful tips that will make buying a home a smooth and easy process. The home buying process It all starts with savings your very first step is to open a savings account with a good interest rate that will reward you for saving. This will not be an everyday account. Consider one that withholds interest if you make a withdrawal to help avoid the spending temptation. A Reward Saver account is a great example. What to buy House and land packages are popular with first home buyers and home buyers in general, but you can also buy houses and apartments off the plan. Of course, you can always purchase an established home and renovate it to suit your needs. Looking around If you haven’t already, jump online and see what is available. Chat to real estate agents at open houses to gain property market insights. Family and other experienced property buyers can also give you advice on what type of purchase makes sense for you. Keep a record of the open houses you visited to remember what you liked and didn’t like about each one. Keep in mind you can buy a home listed with a real estate agent, but some home owners prefer to sell privately and save on agency fees. Home loans – what you need to know There are many different types of home loans available, however your best bet is to compare current mortgage rates and use a home loan repayment calculator to work out how much you can afford to borrow. Speaking to a lender about your different options is a good start to get a grasp on how much you need for a deposit, plus any loan establishment fees. Some financial institutions require a 20% deposit to avoid lender's mortgage insurance. If saving 20% seems daunting, speak to one of our lenders to explore your options. You may consider sharing ownership of the property with a family member, friend or partner. Another key element of the home buying process is finding a good solicitor who will explain the contract of sale. Don’t be afraid to ask questions as it will make buying a home easier in the future. Do your research on government grants Depending on eligibility criteria, you could be looking at receiving the First Home Owners grant which is $10,000 towards the cost of your home. There are criteria you need to meet to apply for the grant. Learn more about the NSW first home buyers grant and the criteria here. Documentation required You can imagine that if you were to lend a large amount of money to someone, you’d want to know they have the ability to repay the loan, that’s why when you apply for a loan, the lender will ask you for a list of your assets and liabilities. In other words what you own that is of some worth (example a car), your savings and any other loans, store cards, credit cards. They’ll also ask you about your rent, if you have dependents and what your income is. To help with the application process, have your latest bank statements, payslips and be ready to answer the questions above. Being prepared with this information will speed up the process. Go home shopping with your loan pre-approved At this point you’ll know how much you can afford to borrow so you can go home shopping confident of your maximum limit and ready to put an offer in. This ensures your dream home won’t slip through your fingers.   Legal representation You’ll need a solicitor to go through the terms of the contract and represent you in the sale. The solicitor will also assist in providing the deposit, settling the property and Government fees. Home Insurance After you’ve purchased a home and got the keys you’ll need to organise home and contents insurance. The best place to start is with the building. If you're going to undergo renovations, estimate how much it would cost to remove debris and rebuild your home. If you’ve built your home, the cost of the build should be in your building contract, so you’ve got a good idea of how much to insure your home for. The next step is to estimate how much your contents is worth. Figuratively going through each room will help.  Looking for more home buying advice? Speak to a Horizon Bank lending specialist and let us help you on your journey. 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. 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.

How much can I borrow? Can I afford my dream property on my own? This easy guide shows you how to use our borrowing power calculator to work out what amount you can afford to borrow based on your income and expenses. To get started, open our borrowing power calculator page in a new tab. Let’s start filling out the boxes. Your net income is how much money you receive after tax. You can select weekly, fortnightly or monthly depending on your pay frequency. Examples of other income would be rent from an investment property. Again, select the payment frequency. If you have someone who is looking to take out a home loan with you, select ‘I have a partner’ and the calculator will estimate your borrowing power based on both of your incomes and expenses. Now let’s put in your expenses. These are your regular costs and outgoings. We need to take into consideration what you owe, to give you a fair and reasonable borrowing estimate. Dependants are the number of children, or individuals who rely on you financially. If neither of these applies to you, select 0. Annual expenses If you know roughly how much money you spend on expenses per year, you can put the total amount in this box. If not, select ‘use average Australian annual expenses’ If you already have a loan and/or credit card, put in the amount and frequency of your repayments. You’re nearly done! All you need for loan details is the interest rate and the loan term. If you haven’t already, check out our range of home loans to find one with the features and benefits that best suits you. Enter that loan’s interest rate into the calculator. If you click on assumptions, we’ve pre-filled some information based on our home loan data to help calculate your borrowing power. The ‘use interest rate buffer’ is there to ensure you can afford the loan in the event that interest rates increase. Your results You can view your results either by graph or table. You’ll see an estimate of how much your monthly home loan repayment may be. Of course, this is just an indication of how much you can afford to borrow. We’re here to help, so give us a call, visit us in person or complete our general enquiry form any time to arrange a chat. Note: The results from the calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you consult a financial adviser before taking out a loan. Want to know more about your borrowing power? Get in touch with the team at Horizon Bank today and let us help you on your property buying journey. 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. 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.

An exciting journey  If you’re a first time home buyer, buying a home is likely to be the biggest single purchase you’ve ever made. It’s a big deal and can be stressful and overwhelming. Knowing what’s involved in the process, will make you feel confident as you move through the motions from inspecting properties to signing a contract and receiving the keys.   You’ve found the one, now what? When you’ve found a home for sale you’re ready to make an offer on, it's time to review the contract of sale. The person selling the property must have a contract of sale prepared and available for inspection for potential buyers. You’ll possibly find a few copies of these on the kitchen bench or other obvious places within the property. If none are readily available, ask the real estate agent for a copy. Once you obtain a copy, take it to your solicitor. They'll review it closely with you before signing to ensure it’s acceptable. Next we’ll talk about making an offer. Keep in mind that having pre-approval for a home loan is ideal before making offers, to ensure you know exactly how much you can afford to borrow. You'll be able to make a realistic offer on the property. Pre-approval also streamlines the process of finalising your finance before making an offer.  Making an offer Once your solicitor gives you the go ahead that everything in the contract looks OK, you’re now ready to put an offer in writing to the real estate agent or seller. An email to the real estate agent will usually suffice. Your offer should include how much you’re willing to pay and any conditions to the sale such as inclusions, repairs, deposit amount or timeframe for moving in. Ask your solicitor to help you prepare your written offer so you don’t miss any important details. Let the negotiations begin If your first offer is accepted straight away congratulations! However, the seller may also enter into negotiations with you over price. Keep in mind that the seller is also free to take written offers from other potential buyers and can even exchange contracts with them. Paying a small deposit as an expression of interest lets the seller and real estate agent know you’re serious. If your offer is not accepted and you’ve paid a holding deposit, this will be refunded.  Exchange and signing of contracts Once the sale price has been agreed, you’ll sign the contracts and your solicitor will facilitate the exchange. At this point you’ll need to pay the full deposit which is usually 5-10% of the purchase price. From the date the contract is exchanged, you become the owner of the property. Now is the time to consider getting it insured. Check out our information on home and contents insurance.  What you need to know about the cooling off period When you buy a residential property in NSW, you have five business days called the cooling-off period after you exchange contracts. During this period, you may get out of the contract and withdraw from the sale as long as you give written notice. The cooling-off period starts as soon as you exchange and ends at 5pm on the fifth business day after exchange. Keep in mind that if you do withdraw during the cooling off period, you’ll have to pay the seller 0.25% of the purchase price. These five days can be a good time to check the condition of the property and, if necessary, arrange pest and building inspections. *Take note: the cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in. Settlement Settlement usually takes place about 6 weeks after contracts are exchanged (although a longer or shorter settlement period can be negotiated with the seller). This is when you pay the rest of the sale price and stamp duty using your home loan and become the legal owner of the property. Your solicitor and lender will work together to keep you informed about settlement and when you’ll need to start making loan repayments. It's a good idea to inspect the property one last time on the morning of settlement day, to ensure it is in the same condition as when contracts were exchanged. After settlement, you’ll receive the keys and you’ll be able to move in! Happy days! Get in touch with the friendly team at Horizon Bank to discuss your home buying options. 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. 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.

Should I refinance my home? If you’ve been paying off your home loan for a few years now, it may be a good time to re-evaluate your home loan and ask yourself “should I refinance my home?" First let’s look at what refinancing is, and the pros and cons. Refinancing – what is it? Refinancing is moving your home loan to a new product with a more competitive interest rate or better features than what you currently have. This could be with your current lender or a new one, depending on eligibility requirements. You can save money by switching to another loan, by having lower repayments or by not paying loan administration fees. However, the key question you need answered is “when should I refinance my home?” Let’s look at that next. When should I refinance my home? If you’ve been on a fixed rate loan and the end of the term is coming up, now would be a good time to look for a better rate. If you want to consolidate debt, or are struggling with repayments, refinancing to a basic ‘no frills’ home loan may be an option worth considering. Accessing equity in your home for renovations or to purchase another property are also reasons to refinance. If interest rates are starting to rise you may consider changing your variable home loan to a fixed home loan. A fixed loan will give you the peace of mind of knowing your repayments will remain the same over the course of the fixed period. When shouldn’t I refinance? Some key scenarios where refinancing may not be financially viable is if you’re about to move house. When you sell you're settling your loan on that property and likely taking out a new loan for another property anyway. Other times where refinancing may not make sense is if you're still making repayments during a fixed rate term, or if you own less than 20% of your property value (as you’ll likely have to pay lender's mortgage insurance again). Using a refinance rates calculator can help you work out whether you'll save or spend money by switching your loan. If the value of your home has fallen, you’ll find yourself refinancing in negative equity. This is not ideal, as you're paying more for a home than what it is worth. Put off refinancing and make regular weekly or fortnightly repayments to get on top of your repayments (if the original idea was to refinance to a lower rate)  Review Your Current Loan  Work out how much you’ve paid off and how much you’ll be paying in interest over the remaining life of your current loan.  Also ask yourself if your loan’s features are still working for you or if you’re looking for something extra. Redraw facilities and offset accounts are just some of the features available to you when you refinance. While you’re reviewing your loan, take into account any ongoing monthly or annual fees you’re likely to be paying. Check out how much it will cost to exit your current loan. This means taking note of any early exit or termination fees. If you have a fixed rate loan these are likely to be quite high, which may outweigh the benefit of refinancing. There's no harm in asking your current lender for a better deal. Do a Home Loan Comparison   The home loan and lending market is very competitive and there are many options to choose from. When shopping around for current refinance rates, the key things to look out for are fees and ‘introductory’ or ‘honeymoon’ rates. Check to see how long they last before reverting back to a higher standard rate. Keep in mind that not all rates are available when refinancing, which is likely to happen if you want to stick with the same lender. Some lenders do not accept refinances for certain loan products, instead they’ll be for new business only. Use our loan comparison calculator to see how much different home loans will cost you. If you're looking to refinance your Home Loan to Horizon Bank, but are not sure where to begin, get in touch with our friendly team today and let us help you on your journey.  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. 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.

Cost saving tips for renovating on a budget There’s no better reward and satisfaction than taking a step back at the end of a renovation to admire your hard work. Whether you’re looking to update a few features or plan on stripping an old room down and creating something from the ground up, read on for our top cost saving tips whilst renovating. Your renovation on a tight budget Improving the aesthetics and functionality of your home will require money to be spent so it’s important to prioritise where to spend your money. You want it done properly so instead of spreading your funds across two or three areas in your home, consider putting all of your available funds into one space that needs the most work and that you and your family will get the most out of. To start off, use our budget planner calculator to see what extra money you have to put towards your renovation.  If you need a helping hand a Horizon personal loan can help to cover all or some of your renovation costs. Get your design right Getting the design right from the get go will reduce your waste and therefore the cost of removing it. In the long term, an environmentally friendly design that allows for natural light and ensures the house is properly insulated will also reduce your heating and cooling costs. Look for ways to save Taking DIY lessons before you start renovating will give you a basic understanding of tools which means there could be some jobs you can do yourself rather than paying someone else to do. This will not only save time and money but will give you practical skills for use in future.  Keep it simple, as changing major structures or moving plumbing are examples of things that are likely to blow out your renovation budget. There’s no shame in getting a professional in. Not only do they have experience, they also have the right tools for the job. You might find that if you DIY it, you’ll need to shell out for expensive tools you won’t need beyond the job. Shop around for fixtures and fittings This takes a bit of time but sourcing your taps, light fixtures etc online or from wholesalers could save you money in the long run. Do your research on materials that will last a while and improve the quality of your home. Keep an eye out for sales and discounts along the way. Include the costs of fixtures and fittings in your budget planner or expense manager to keep track of all the items you’ll need for your renovation. Make sure you have all the essential materials and fixtures you need before starting the job. This will help you avoid inconvenient delays. Gather friends and family together Many hands make light work. Ask family and friends to lend a hand during the clearing out, demolishing and labour intensive parts of your renovations to save money on tradespeople.  Keep track of invoices and quotes This is where a budget planner or expense manager is really useful to keep on top of what you were quoted for versus what you actually end up paying. This keeps tradespeople accountable and also helps you remember where you sourced your fixtures and fittings from for any warranty claims. The important bits to take away Start by understanding all the associated costs of your renovations. Make good use of budgeting tools to help prioritize these to create a home remodel budget you can work with. Seek advice from licensed trades people and kitchen or bathroom designers to make a fully informed decision. Allow time for the planning, setup and installation of your new rooms and have a plan B if you can’t use your bathroom or kitchen for a few days or weeks. Need some extra help with planning your renovation budget? Get in touch with the friendly team at Horizon Bank and ask us about ways to fund your renovation today. 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.

Saving to buy a house? You’ll have more options with a larger house deposit Your house deposit is just one of the costs you need to consider when saving money for a house. Other costs include stamp duty, legal fees, removalist plus money for furnishings and the list goes on. Let’s take a look at how you can save for that dream home faster. Work out what you’re saving for The best way to save for a house is to have an idea of what you’re saving for. This will not only give you a clearer picture of your end goal, but will also help your lender in giving you an estimate on your borrowing power and affordability. So consider, are you after an established home, townhouse, apartment or something off the plan? Do your research to be fully informed on each type of dwelling so you can inform your lender with confidence about what you’re looking to purchase. Set a goal Set an amount you would like to save and a timeframe to save it in. This will help keep you on track with saving money for a house. A deposit of 20% of the property price is generally required by most financial institutions to avoid lenders mortgage insurance. Lenders Mortgage Insurance (LMI) is a cost imposed by financial institutions to protect themselves against ‘high risk’ loans. Any loan that is greater than 80% of the property value is considered ‘high risk’. You will need LMI if you’re borrowing more than 80% of the property value. Set a budget – and stick to it! Take a look at your income and expenses, if you’re spending more than you earn now is a good time to cut back! Regular dinners, coffee outings, direct debits and other subscriptions/memberships are costly and will hinder your savings goal. Use our budget planner to get you started. Save regularly Making regular deposits into a savings account that’s not an everyday account and will normally pay a better interest rate is critical to your savings success. A Reward Saver account is great example. If you get paid weekly, your savings should also grow weekly. This takes discipline and effort however saving to buy a house = owning your own piece of the property market. Worth it! What else can I do? Doing all the above but feeling like it’s still taking forever to get that house deposit? Here are a few other options to try: • Move back in with parents or relatives • Pick up casual work on top of your current job • Limit the amount of times you go out in a month by picking and choosing between social commitments • Need some time out? Go away for a short weekend trip rather than long interstate or overseas holidays • Any extra funds that come your way should go straight into savings The important bits to take away • Be clear on exactly how much you need to save • Keep a budget to show where you’re spending and saving. Use our budget calculator to help. • Higher interest savings accounts will reward you for saving (and not withdrawing!) • Moving back home may sound drastic, but will help you reach your end goal much faster.    Looking for more advice on how to save for a house deposit? Get in touch with Horizon Bank today and let us help you on your journey. 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.