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It's important to be mindful of your banking choices and ensure that they align with your personal values. Banks can provide both great convenience and peace of mind, but it's important to do your research before signing up. Whatever route you choose, be sure to take the time to understand what makes the bank tick - so you can feel good about where your money is going. Here are a few tips on how to make sure you're banking with integrity. Figure out what's important to you When it comes to your money, it's important to align your values with your banking. Find a bank that shares your commitment to things like social responsibility, environmental sustainability and ethical business practices. There are a number of ways to figure out what's important to you. Start by thinking about the causes and issues that you care about most. Then, research banks and credit unions that have policies and programs in place that support your values. Consider the day-to-day convenience of things like online and mobile banking, ATMs, and customer service when making your decision. By taking the time to align your values with your banking, you can ensure that your money is working for you – and for the world. What to look for in a bank Personal banking is more than just a place to keep your money – it’s a personal relationship that should align with your values. The same goes for business banking. When you’re looking for a bank, here are some things to consider to make sure your values are aligned: Does the bank have a personal relationship with its customers?This is important for both personal and business banking. You want to be able to trust your bank and feel like you’re more than just a number. Does the bank support local community, businesses and causes?If you value supporting your community and local businesses, you’ll want to make sure your bank does too. What are the bank’s environmental policies?If you care about reducing your carbon footprint, you may want to choose a bank that offsets its carbon emissions or invests in renewable energy. What are the bank’s social responsibility policies?If you want to make sure your money is going towards making the world a better place, look for a bank that donates to charitable causes or has a focus on social responsibility. Find a bank that aligns with your values When it comes to banking, there is no one-size-fits-all solution. The best bank for you will depend on your unique financial needs and goals. By doing your research and taking the time to find a bank that aligns with your values, you can ensure that your money is being used in a way that supports your beliefs. Here are a few tips to help you find a banking institution that matches your world view: Do your research - Start by identifying which banking values are most important to you. Ask around - Talk to your friends, family, and colleagues to see if they have any recommendations. Read reviews - Once you've narrowed down your options, read online reviews to get a sense of what other customers think about the banks you're considering. The benefits of banking with a values-aligned institution There are many benefits to banking with a values-aligned institution. When you bank with an institution that shares your values, you can be confident that your money is being used in ways that align with your beliefs. This gives you a greater sense of control over your finances and helps you to support causes that are important to you. This can make banking feel more personal and supportive, rather than just transactional. If you are looking for a bank that shares your personal values, Horizon Bank may be the perfect fit. Check out Horizon's values and see if they resonate with you. We offer a variety of products and services to meet your needs, as well as a commitment to community involvement. Contact our local team today to learn more about how we can help you achieve your financial goals. 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.

Are you looking for a different way to save for retirement?A Self-Managed Super Fund (SMSF) may be something you should consider as a way to plan for retirement. You can choose your own investments and manage your own super fund. This gives you more control over your future and allows you to make the most of your retirement savings. What is a self-managed super fund (SMSF)?A self-managed super fund (SMSF) is a type of superannuation fund where the members are also the trustees. This means that the members have control over the investment decisions made and are responsible for complying with the relevant legislation. SMSFs can be established by up to four trustees, who can either be individuals or corporate trustees. The trustees must also be members of the fund. One of the benefits of an SMSF is that it offers flexibility in terms of investment options. Trustees can choose to invest in a wide range of assets, including shares, property, and managed funds. This can provide greater control over the retirement savings and allow the fund to be tailored to individual needs. Another advantage of an SMSF is that it may offer cost savings compared to larger superannuation funds. This is because SMSFs have lower administrative costs and can benefit from economies of scale. Ultimately, an SMSF can provide greater control and flexibility when it comes to retirement planning.   How do self-managed super funds (SMSFs) work? A self-managed super fund (SMSF) is a trust fund established for the purpose of providing retirement benefits for its members. It is managed by its members, who are also trustees of the fund. SMSFs are unique in that they allow individuals to have direct control over their retirement savings. As such, SMSFs are subject to stringent regulations designed to protect the interests of members. One of the key requirements of an SMSF is that it must have a compliant investment strategy. This means that the trustees must consider factors such as how the fund will generate income and how it will grow over time. Additionally, SMSFs must maintain detailed records and comply with reporting requirements. While this may seem like a lot of work, many people find managing their own super fund is a rewarding experience. What are the benefits of self-managed super funds (SMSFs)?Self-managed super funds have become increasingly popular in recent years and for good reason. SMSFs offer a number of benefits that traditional super funds simply can't match. SMSFs give you a high degree of control over your investments. With an SMSF, on the other hand, you have the final say over where your money is invested. This means that you can tailor your portfolio to your unique financial goals and risk tolerance. In addition, SMSFs typically charge lower fees than traditional funds. This is because you're not paying for expensive fund managers or other middlemen. As a result, more of your money stays in your pocket, where it can compound over time and grow into a sizeable nest egg. SMSFs offer greater flexibility when it comes to withdrawals and benefits. This flexibility can be especially beneficial if you need to access your funds for unexpected expenses or opportunities. All things considered, it's no wonder that self-managed super funds have become such a popular choice for savvy investors. Things to consider before setting up an SMSFThere are a few things to consider before setting up a self-managed super fund (SMSF). First, you need to be sure that you are able to meet the SMSF administration requirements. This includes: maintaining records; preparing financial statements; and lodging tax returns. You also need to have an understanding of investment strategies and SMSF fund rules. Additionally, you need to be comfortable making decisions about your own finances and investments. If you’re not confident in your ability to meet these requirements, it would be best to seek professional advice. Another thing to consider is whether you have enough money to comfortably invest in an SMSF. This type of fund typically requires a larger initial investment than other types of super funds. Finally, you need to be aware of the risks involved in investing in an SMSF. As with any investment, there is always the potential for loss. Contact us todayLook to Horizon Bank to open a Self-Managed Super Fund Saver account. Get in touch with one of 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. Note: The article above is not financial advice. You should consider your own financial circumstances. Before acquiring the financial product, you should consider whether or not the product is appropriate for you. You may wish to seek financial advice from a professional financial adviser. A Product Disclosure Statement (PDS) is available from any Horizon branch. You should consider the relevant PDS in deciding whether to buy or hold the products.

The end of the current financial year is 30 June with the new year beginning on 1st July. With End of Financial Year or EOFY quickly approaching, it’s important that you get your tax return checklist together and have the correct documentation to complete your tax return. Here are 5 key things that are required when you lodge your tax return: Payment summaries or Income statements – provided by your employer Bank statements showing interest earnt - if you lodge your tax return online using myGov, the Australian Taxation Office (ATO) may prefill these fields already for you. Records and receipts of work related expenses Records and receipts of expenses and maintenance incurred on investment properties Any other documentation showing forms of income We’ll discuss some key practices to get into the habit of to keep you on top of you affairs during tax time. Record keeping Good record keeping is a must and is a continuous job that has no real end date. Having folders or an organised filing system that clearly labels the financial years containing expenses, deductions and income earnt will make it much easier to find what you need when doing your tax return. The ATO has a myDeductions tool, which is free to use and is available through the ATO app. Income tax deductions you can claim Are you aware of the deductions you can make at tax time? Visit the Australian Tax Office website to see what you can claim. Do you research so that you are not missing out on income tax deductions you could be entitled to. Keeping receipts for work and self-education expenses will ensure you don’t miss out on any deductions. EOFY deals At this time of year, there are lots of sales and specials to entice you into buying things with your tax refund. Cars, technology and whitegoods are some of the popular items going on sale. Before hitting the shops, be sure to check that these are things you need and not just want, otherwise you might be spending dollars you don’t actually have. It might be a good idea to wait until you’ve done your tax return to see if you’re entitled to a refund. Set yourself up for tax return success If you are using a tax agent ask them ahead of time what you need to bring to help them complete your tax return. Keep this in mind for the following year so you are organised and have all your paperwork ready to go. This will greatly help you with your tax return submission and can even save you time with your tax agent. The tax season runs until the 31st October each year. You have until this date to lodge your tax return. If you owe money, your notice of assessment will tell you how long you have to pay. How to best manage tax refunds It can be exciting to see a big lump sum payment hit your account. If you’re expecting a refund, have a think about what that extra money can go to. You may want to put it into a savings account, or contribute to a loan repayment. Be sure to manage your refunds wisely, and plan for the next financial year ahead. Are you planning for the EOFY and need some extra help with your banking needs? 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.

Tips for preparing for a change in interest rates Why do interest rates change? To understand why interest rates change, we'll first talk about the cash rate. The cash rate is a rate set by the Reserve Bank of Australia (RBA) representing the interest that banks and lenders have to pay on the money that they borrow. This rate will rise to try and slow the economy down, or fall to promote economic growth. The RBA's objective is to promote a stable currency, full employment and economic prosperity, ensuring that price growth, or inflation, remains relatively low and stable. Interest rates on the other hand, are what determines the cost of borrowing or lending money. If the RBA raises the cash rate, then it will cost more for banks to conduct business between themselves. Banks and lenders may pass these costs on to consumers in the form of rate rises, meaning anyone who has borrowed money from that institution will be charged more interest. What does an interest rate rise mean? The cash rate has a flow on effect to financial products with variable interest rates, such as savings accounts, variable rate mortgages and personal loans. Learn more about the different types of loans. It also impacts cost of funding for the banks. An interest rate rise means the cost of funding a loan has increased. This can lead to higher repayments, which can leave borrowers with less disposable income, meaning many people may need to look to make savings elsewhere. Interest rate rises can be tough for families and small businesses, as increased mortgage and debt repayments can make life more expensive. On the flip side, depositors enjoy an interest rate rise as they will see a greater return on their savings and term deposits. What is the impact of interest rates rise on mortgages? A rise in interest rates will see your minimum monthly repayment increase. If you’re not sure what this is, you can find out by checking the loan details in your online banking or by asking your lender. If you're on a standard variable rate loan, you'll probably see your rate go up in line with any interest rates rise. It is important to check your loan contract and any other relevant terms and conditions when you first receive your loan offer. Fixed-rate mortgage holders are likely to be affected when they reach the end of the current deal. A rise in interest rates could make a re-mortgage more expensive. It’s important to remember whilst a small rise may not affect your repayments too much, a few consecutive rises could have a significant impact on repayment costs. How do I prepare for an interest rate hike? It’s important to have a financial plan to deal with any potential changes in interest rates. If you’re following the market and have noticed interest rates rising, you can always speak to us about your home loan to see if making extra repayments or switching from variable to a fixed rate would be in your best interest. If you don’t have a home loan with us, get in touch to see if refinancing to Horizon makes good financial sense. Making a plan to cover the next three to six months is a good idea to make your money go even further. Setting a budget and reducing unnecessary spending is a great place to start. Putting extra money towards other debts like credit cards and personal loans will also put you ahead if interest rates rise. Tips for managing an interest rate rise on your mortgage Calculate the impact the interest rate rise will have on your mortgage. Use our loan repayment calculator to get an idea of how calculator to work out the impact. Calculate what you can afford If your mortgage repayments are likely to go up, work out if you're able to afford them. As discussed earlier, you may need to cut unnecessary spending to make up this extra cost. If you think increases are expected to happen in the future, then start saving up enough money now to cover your mortgage payments when they occur. Are you on the best deal? If you have a fixed rate home loan with us, we will be in touch before your fixed term ends to discuss your options. At this point you can lock in a new rate or switch to a competitive variable rate. It’s important to speak to your financial institution first to see if the savings are worth it before switching. Make more mortgage repayments if you can Taking advantage of the lower interest rate environment while you can and paying extra if possible will put you in a better position during a rate hike. It’s important you always check with your mortgage provider before you pay any extra repayments as fees may apply, especially on a fixed rate loan. What happens when interest rates fall? Low interest rate environments tend to benefit borrowers rather than savers. The goal is to stimulate economic growth by making it cheaper to borrow money for large purchases like property. People are willing to make larger purchases and will borrow more, which increases the demand for household goods. A low interest rate environment is great news for homeowners because it will reduce their monthly mortgage payment. This also sees potential homeowners be drawn into the market because of the cheaper costs. The flow on effect is that low interest rates mean more spending money in consumers' pockets. Lower interest rates gives borrowers a break in terms of lower debt repayments and it can also provide an opportunity to get ahead on your mortgage. Unfortunately, people with large deposits in the bank don’t see much of a return on their investment when interest rates fall. To view our current interest rates on our loans and savings products, visit our interest rate page. Horizon Bank is 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. 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.

At some point you’ll probably need a loan for something whether it be a holiday, car, credit card or home purchase. One of the ways a lender will assess your application is by looking at your credit history. This is why understanding what your credit report and credit score says about you is important. What is a credit score? Many people use the terms “credit score” and “credit report” interchangeably however they are two different things. Your credit report contains a summary of your financial history, while your credit score is included in the report and reflects how reputable your financial history is. Credit bureaus such as Equifax hold credit report information. A credit report is created when a bank or other credit provider submits a request for information. Why do I need a credit report? Having a credit report and score will assist you in applying for a loan or credit card as lenders can use this as one indicator of your ability to repay. Credit reports can also be used by landlords when deciding who to rent their property to, and by employers as part of their hiring process. How do I build a credit report? Credit reports can be created when you have a utility account in your name and the provider runs a credit check. These include phone, gas, electricity and internet accounts. These are considered credit accounts, so if you default on payments for these, it will be listed on your credit report. How do I access my credit report? Visit the ASIC money smart website for a list of sites where you can access your credit report once per year for free. Be wary of websites asking you to pay for your credit report as this could be a scam. Requesting your credit report more than once per year may attract a fee from credit reporting bureaus. What is included in your credit report? Personal information and contact details are included. How long you’ve been at your current and previous address is also on there. Other things that make up your credit report include: Type of credit provider. Different lenders have different levels of risk. For example a non-traditional lender such as store finance may have a different level of risk than a bank or credit union. Size of credit requested. Both the type and size of the loan or credit limit you’re requesting can affect your credit score. Mortgages have a different level of risk compared to credit cards. Number of credit enquiries. Every time you apply for credit, the credit provider obtains a copy of your credit file and the application is noted. The pattern of credit enquiries over time also affects the level of risk. This is considered a red flag for credit providers. Directorship information. If you’re a director or proprietor, it may impact your score. Check both the individual and commercial sections of your credit file to see what is noted. Age of credit file. Check the date your credit file was created. A new file may indicate a different level of risk compared to an older file. What stays on your credit report? Default information. Any personal or business credit such as overdue debts or serious credit infringements could negatively affect your score. Court writs. Default judgments or court writs may convey you as an increased risk and negatively impact your score. Bankruptcy: if you declare bankruptcy, this will stay on your report for 5 years starting from the day you declare bankruptcy or 2 years starting on the day you were no longer bankrupt. Debt agreement: Entering into a debt agreement is where you negotiate to pay a percentage of your combined debt that you can afford over a period of time. Payments are made to your debt agreement administrator. These agreements remain on your credit report for 5 years from when the agreement was made or 2 years from the day the agreement is completed or declared void. What is a good credit score Earlier on we mentioned credit bureaus hold your credit report information. They also determine your credit score differently. Generally, the higher your credit score, the better it is. Below is a breakdown of how Equifax evaluate your credit score as an example. Looking at the table, a score between 833 and 1200 gives an excellent score which means it is less likely that a negative event (related to repaying a debt) will be recorded on your file in the next 12 months. This means you are in the top 20% of the credit-active population and will appear as less of a risk to lenders. A below average (0-509) score means you’re in the bottom 20% of the credit-active population and are unlikely to be approved by reputable lenders. Source: Finder.com.au Improve your credit score Fixing issues on your credit report When you receive your credit report, you can contact the credit bureau you received it from if there is any incorrect information. Only incorrect information can be removed. If all of the information is correct but your credit score is still low, there are steps you can take to improve your score. How do I fix my credit score? Consolidate your debts into one easily managed personal loan if possible. Consider entering into a debt agreement to pay off multiple debts. You can read more about debt agreements on the Australian Financial Security Authority’s website. Lower the limit on credit cards if you are not reaching that limit with your spending. Avoid a default notice by making payments within 60 days of when they are due. Default notices of $150 or more remain on your credit report for 5 years. Limit the number of credit enquiries you make. Multiple enquiries for credit made within a short period are recorded on your credit report and are considered a red flag to lenders. Seek help from a financial counsellor to help you work out a plan for paying down your debts, through disciplined spending and saving. Use of financial counselling services is not recorded on your credit report. Thinking of applying for a loan or credit card, but want to know more about your credit report first? Get in touch with us today, we’re here to help. 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. 

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.

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.