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. 

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.

Using our currency converter calculator It’s that time of year where many Australians are heading overseas in search of relaxation and warmer weather, with travel destinations such as Bali, Thailand and Europe being amongst the most popular. After finalising your travel arrangements, it’s time to consider the exchange rate. Using a currency converter is a quick and easy way to see how much of the foreign currency you’ll receive for your Australian dollar. You can keep up to date with foreign exchange rates for a number of popular travel destinations by checking out the table here.  If you’ve set yourself an amount for spending money, you can then use the currency converter calculator to see if you’ll have enough on your trip, or if you’ll need to save more! Watching the exchange rates over a period of time is a good way of knowing when it's the best time to convert your money. After you’ve worked out how much money you have to convert, you can order your foreign cash through us. Travel Insurance If you haven’t purchased travel insurance, we can also sort this out for you. Travel insurance is great for peace of mind that should your luggage be lost or stolen, you’ll be covered. You’re also covered for a number of other events. Get a quote online or talk to us about your travel insurance needs before you go. 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 Product Disclosure Statement and 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.