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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.   

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.

Over 50 & Buying Your First Home For many people, buying a home is a major financial commitment. Have you considered buying a house later in life?Are you looking for a way to get out of renting? Are you trying to get into the market before interest rates increase? Whatever your reason, a mortgage could give you the stability you are looking for and get out of the renting cycle. Speak to our friendly team at Horizon bank today. Buying a house at any stage of life is an exciting time. In this blog, we’ll look at the advantages and disadvantages of being a first-home buyer in your 50s, plus some other key tips for property buying in general. Advantages of buying a home in your 50s By this stage of life, you will hopefully have money saved up from years of employment. Savings are essential to put towards a deposit for a home loan and a stronger deposit could potentially enable a higher purchase, opening up your options on the property market. Years of experience will give you more confidence in price and contract negotiations, and a clearer view of the type of property you want. Knowing what you want will also help you plan for the future and give a better idea of future needs concerning mobility and accessibility. Not only will you have secured an asset that can grow in value over the longer term, but you will enjoy the emotional and physical security that comes with owning your own home, as the vulnerability of being a tenant is gone. Disadvantages of buying a home in your 50s If you're looking to buy your first property now, there are some disadvantages to consider before making a decision. This may include reviewing how you live your life and making significant changes that may require some time to get used to, but which could be beneficial for your future. This may leave you feeling out of your comfort zone, however, it is important to remember that everyone leads a different path, and purchasing property is a positive venture. There may be pressure to pay your home loan down quickly if your projected working years is less than the standard 25 or 30-year loan term. It is best to speak with a lender about your options in this regard. If your budget or savings don’t allow for you to purchase in the area you have become accustomed to living in, you may need to evaluate if buying property right now is the right move for you, or if you are better off waiting to purchase where you want to live. If you still have adult children living at home, or elderly parents you care for at home, you may need to work around their needs as well which can be another challenge. First Homeowner’s Over 50 – Essential information Consider how much you can afford The first step is to determine how much you can borrow. Using our borrowing power calculator is a great first step. You should only purchase a home if you can afford the repayments, legal fees, bank fees and any applicable government fees like stamp duty. If you can demonstrate a good savings history, this will help when applying for a home loan. If you’re currently renting, take a look at your budget and see if repayments will be more or less than the rent you currently pay. Consider whether you will be better off making repayments on a home loan and consider where you can redirect any savings. Check your credit score Before you apply for a mortgage, check your credit score. If you find that it needs work, take the necessary steps to improve it. Checking your credit history and credit scores can help you better understand your current credit position. Checking your credit reports regularly can help you become more aware of what lenders might see. Checking your credit report can also help you detect any inaccurate or missing information. Think about how much maintenance you can handle If you’ve been renting, you’ll know it is the landlord's responsibility to fix any maintenance issues around the home. You may have only been responsible for maintaining a yard or small garden. When looking to buy property, think about what type of maintenance you can handle yourself as these expenses become your responsibility as a homeowner. Buying with a family member Plan for different stages and financial challenges in life and consider affordable housing opportunities like buying with a family member. 3 It may suit you and your lifestyle to choose to buy with your children or other relatives in a dual occupancy arrangement. You should do your own research on the pros and cons of buying a property with a family member to understand your rights and obligations. Getting a home loan at any age is a big decision and shouldn’t be taken lightly. This is why there are many things to consider when choosing to buy your first home. At Horizon Bank, we are here to help you with your banking needs. If you have any questions or would like us to discuss your needs further please get in touch with our friendly local team 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. Frequently Asked Questions What are the benefits of buying property when you’re over 50? Buying a home could give you the stability you are looking for and provides an opportunity to get out of the renting cycle. You also are securing an asset that will increase in value. What can I use to prove affordability? This includes proof of savings or investments, as well as evidence that you have enough income and assets to sustain yourself during the life of your loan and into retirement. What are the key factors in getting a home loan? Demonstrate a good saving history such as a share investment portfolio or other investments. Show a sound borrowing history and demonstrate proof of income. A bigger deposit will open up your options for finance. Consider different markets for affordability and be sure the mortgage suits your situation.  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.

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.

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. 

Choosing a home loan can be a daunting and overwhelming experience – especially for first home buyers. With rates and rules around lending and eligibility changing all the time, it can be hard to get a grasp on which home loan is relevant for you and your situation. In this blog we’ll run through the types of loans on offer and what they’re used for. Principle & Interest Home Loans These types of home loans are comprised of two components; the principle and the interest. The principle is the whole amount you need to borrow to purchase your desired property. The interest is the rate that’s charged and added to your principle amount. Your repayments will be comprised of the principle and the interest. Principle and interest home loans are normally for buyers and first home buyers of their primary place of residence. Compare our Home Loans Interest Only Home Loans   Interest only home loans, as the name suggests, is where you’re only paying off the interest charged on top of the principle amount borrowed. Your repayments will be comprised of the interest charges only. While this sounds appealing, you need to be aware of any introductory periods that revert to principle and interest repayments, as your repayment amount will increase. Interest only lending is suited to investors taking out a mortgage to buy an investment property, as the interest only repayments provide certain tax benefits. They’re also good for managing short-term loan needs. For example, you might need it for a bridging or construction loan. Get in touch for interest rates Variable & Fixed Home Loans The other key feature of a home loan is whether to go with a variable or a fixed interest rate. There are advantages and disadvantages to both. Fixed home loans provide the convenience of a fixed rate mortgage for a term of either 1, 2, 3 or 5 years. After your term is up, the rate will usually revert back to the bank’s standard variable rate unless stated otherwise in your loan contract. The benefit of a fixed home loan is you know exactly how much your repayments will be each month and your rate won’t change during the fixed period. The main disadvantages are that fixed home loan rates are usually a bit higher than variable rate loans. They can have higher set up fees and break costs and banks will usually limit how much you can pay off your loan in a year. Variable rate loans are often lower than fixed rate loans. Variable interest rates can change at the bank’s discretion. If the rate rises, so will your repayments which may affect your budgeting and saving. Conversely, if the rate decreases, your repayments will reduce. This gives you an opportunity to pay the loan off quicker if you keep your repayments the same. Use our loan repayment calculator to see the difference in repayments would be with the two different types of loans’ interest rates. Choosing a Home Loan Based On the Features You Are Looking For Choosing a home loan is all about considering your current situation and making an educated decision as to whether the loan set up will suit you long term. A fixed rate home loan is great for fixed repayments that won’t change during the specified term. However if you want to pay off more than the minimum monthly repayment and make lump sum repayments where you can, it may not be the best choice. Considering additional features such as a redraw facility or an offset account are great ways to make your savings reduce the interest charged on your home loan and to pay it off quicker. You can compare our home loans and their comparison rates by viewing our home loan comparison table. We also have a range of mortgage calculators you can use to get an idea of what your repayments may be. Frequently Asked Questions How much can I borrow? The total amount you can borrow will be dependent on a number of factors such as income, expenses and existing debts. Use our borrowing power calculator to get started. 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 get started. How do you refinance a home loan? If you have your home loan with another lender and would like to refinance to Horizon Bank, check out our article on refinancing or get in touch with any questions. If you’re looking for a Home Loan, but not sure where to start, get in touch with the friendly team at Horizon Bank 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.

As property loans are usually a long term commitment, you need to ensure you have a strategy in mind that places you in a good position to repay that loan. Let’s look at a few key topics to consider in your home buying strategy. Factors affecting the property market Education about the property market is key. There are trends where house prices rise and fall, thus having a sellers versus a buyers' market. If you're in a position to monitor house prices over a period of time this will help you buy at an advantageous time. Factors such as interest rates, economic growth, mortgage availability (or credit growth), supply and demand are all relevant to the Australian housing market. For example, lower interest rates encourages borrowing while a high supply of housing will see a fall in prices. How do you find the right property? Follow the process of questions to ask yourself to help you find the right property. What's your purpose for buying property? E.g. are you after a home to live in or an investment property? Where do I want to buy? Your purpose for buying property will help you answer this question. If you are looking for a family home for example, a property close to shops, schools and transport could be beneficial. When do I want to buy? If you want to buy a home in the next 6-12 months, now is a good time to set up a savings plan and start growing your deposit. How much can I borrow? Using our borrowing power calculator will give you an idea of your borrowing capacity. What will my repayments be? After looking at the prices of a few properties you’re interested in, use our home loan repayment calculator to work out what your repayments will be. Researching location and price is important, but there are other things you should consider such as the cost of land rates in the area, any major scheduled works on infrastructure and local council plans for the area. How do you find and apply for a Home Loan? The home loan and lending market is highly competitive, with many features that make repaying and managing your loan easy. For an easy home buying process, you can apply for home loan pre-approval. Pre-approval gives you two months to go property hunting. It's important to find the right loan based on your needs. Again, answering the first question above will tell you whether you need a home loan or investment loan. From here, you can choose a fixed or variable rate loan with principle and interest or interest only repayments. (Interest only repayments can only be used for investment loans or for short-term bridging loans). Speaking to an experienced lender is the best way to find the right home loan for you. How do you manage a Home Loan once you buy your home? Managing your loan via Online Banking is an easy way to stay in control of your repayments. We can setup automatic loan repayments, so you'll avoid being in arrears.  Regular weekly or fortnightly repayments could give you extra savings in your home loan that you can redraw on later (if your home loan has a redraw facility) these savings will also minimise the interest you incur. View our range of home loans to get started. Alternatively, you may choose to have an Offset account. You can deposit your pay and savings into the account and the balance is then offset against the amount owing on your loan. For example if you have a property loan of $200,000 and $25,000 in your offset account; in this situation, you’ll only be charged interest on a loan balance of $175,000 ($200,000 - $25,000). No matter whether you're planning on buying your first home, new home or investment property, we're here to help. Get in touch with the friendly team at Horizon Bank today and let us assist 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.