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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. 

Your complete guide to buying a home The property market and housing affordability is tricky to navigate for first home buyers or any home buyer no matter how many times you’ve done it. Keep reading for helpful tips that will make buying a home a smooth and easy process. The home buying process It all starts with savings your very first step is to open a savings account with a good interest rate that will reward you for saving. This will not be an everyday account. Consider one that withholds interest if you make a withdrawal to help avoid the spending temptation. A Reward Saver account is a great example. What to buy House and land packages are popular with first home buyers and home buyers in general, but you can also buy houses and apartments off the plan. Of course, you can always purchase an established home and renovate it to suit your needs. Looking around If you haven’t already, jump online and see what is available. Chat to real estate agents at open houses to gain property market insights. Family and other experienced property buyers can also give you advice on what type of purchase makes sense for you. Keep a record of the open houses you visited to remember what you liked and didn’t like about each one. Keep in mind you can buy a home listed with a real estate agent, but some home owners prefer to sell privately and save on agency fees. Home loans – what you need to know There are many different types of home loans available, however your best bet is to compare current mortgage rates and use a home loan repayment calculator to work out how much you can afford to borrow. Speaking to a lender about your different options is a good start to get a grasp on how much you need for a deposit, plus any loan establishment fees. Some financial institutions require a 20% deposit to avoid lender's mortgage insurance. If saving 20% seems daunting, speak to one of our lenders to explore your options. You may consider sharing ownership of the property with a family member, friend or partner. Another key element of the home buying process is finding a good solicitor who will explain the contract of sale. Don’t be afraid to ask questions as it will make buying a home easier in the future. Do your research on government grants Depending on eligibility criteria, you could be looking at receiving the First Home Owners grant which is $10,000 towards the cost of your home. There are criteria you need to meet to apply for the grant. Learn more about the NSW first home buyers grant and the criteria here. Documentation required You can imagine that if you were to lend a large amount of money to someone, you’d want to know they have the ability to repay the loan, that’s why when you apply for a loan, the lender will ask you for a list of your assets and liabilities. In other words what you own that is of some worth (example a car), your savings and any other loans, store cards, credit cards. They’ll also ask you about your rent, if you have dependents and what your income is. To help with the application process, have your latest bank statements, payslips and be ready to answer the questions above. Being prepared with this information will speed up the process. Go home shopping with your loan pre-approved At this point you’ll know how much you can afford to borrow so you can go home shopping confident of your maximum limit and ready to put an offer in. This ensures your dream home won’t slip through your fingers.   Legal representation You’ll need a solicitor to go through the terms of the contract and represent you in the sale. The solicitor will also assist in providing the deposit, settling the property and Government fees. Home Insurance After you’ve purchased a home and got the keys you’ll need to organise home and contents insurance. The best place to start is with the building. If you're going to undergo renovations, estimate how much it would cost to remove debris and rebuild your home. If you’ve built your home, the cost of the build should be in your building contract, so you’ve got a good idea of how much to insure your home for. The next step is to estimate how much your contents is worth. Figuratively going through each room will help.  Looking for more home buying advice? Speak to a Horizon Bank lending specialist and let us help you on your journey. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

How much can I borrow? Can I afford my dream property on my own? This easy guide shows you how to use our borrowing power calculator to work out what amount you can afford to borrow based on your income and expenses. To get started, open our borrowing power calculator page in a new tab. Let’s start filling out the boxes. Your net income is how much money you receive after tax. You can select weekly, fortnightly or monthly depending on your pay frequency. Examples of other income would be rent from an investment property. Again, select the payment frequency. If you have someone who is looking to take out a home loan with you, select ‘I have a partner’ and the calculator will estimate your borrowing power based on both of your incomes and expenses. Now let’s put in your expenses. These are your regular costs and outgoings. We need to take into consideration what you owe, to give you a fair and reasonable borrowing estimate. Dependants are the number of children, or individuals who rely on you financially. If neither of these applies to you, select 0. Annual expenses If you know roughly how much money you spend on expenses per year, you can put the total amount in this box. If not, select ‘use average Australian annual expenses’ If you already have a loan and/or credit card, put in the amount and frequency of your repayments. You’re nearly done! All you need for loan details is the interest rate and the loan term. If you haven’t already, check out our range of home loans to find one with the features and benefits that best suits you. Enter that loan’s interest rate into the calculator. If you click on assumptions, we’ve pre-filled some information based on our home loan data to help calculate your borrowing power. The ‘use interest rate buffer’ is there to ensure you can afford the loan in the event that interest rates increase. Your results You can view your results either by graph or table. You’ll see an estimate of how much your monthly home loan repayment may be. Of course, this is just an indication of how much you can afford to borrow. We’re here to help, so give us a call, visit us in person or complete our general enquiry form any time to arrange a chat. Note: The results from the calculator should be used as an indication only. Results do not represent either quotes or pre-qualifications for a loan. The specific details of your loan will be provided to you in your loan contract. It is advised that you consult a financial adviser before taking out a loan. Want to know more about your borrowing power? Get in touch with the team at Horizon Bank today and let us help you on your property buying journey. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

An exciting journey  If you’re a first time home buyer, buying a home is likely to be the biggest single purchase you’ve ever made. It’s a big deal and can be stressful and overwhelming. Knowing what’s involved in the process, will make you feel confident as you move through the motions from inspecting properties to signing a contract and receiving the keys.   You’ve found the one, now what? When you’ve found a home for sale you’re ready to make an offer on, it's time to review the contract of sale. The person selling the property must have a contract of sale prepared and available for inspection for potential buyers. You’ll possibly find a few copies of these on the kitchen bench or other obvious places within the property. If none are readily available, ask the real estate agent for a copy. Once you obtain a copy, take it to your solicitor. They'll review it closely with you before signing to ensure it’s acceptable. Next we’ll talk about making an offer. Keep in mind that having pre-approval for a home loan is ideal before making offers, to ensure you know exactly how much you can afford to borrow. You'll be able to make a realistic offer on the property. Pre-approval also streamlines the process of finalising your finance before making an offer.  Making an offer Once your solicitor gives you the go ahead that everything in the contract looks OK, you’re now ready to put an offer in writing to the real estate agent or seller. An email to the real estate agent will usually suffice. Your offer should include how much you’re willing to pay and any conditions to the sale such as inclusions, repairs, deposit amount or timeframe for moving in. Ask your solicitor to help you prepare your written offer so you don’t miss any important details. Let the negotiations begin If your first offer is accepted straight away congratulations! However, the seller may also enter into negotiations with you over price. Keep in mind that the seller is also free to take written offers from other potential buyers and can even exchange contracts with them. Paying a small deposit as an expression of interest lets the seller and real estate agent know you’re serious. If your offer is not accepted and you’ve paid a holding deposit, this will be refunded.  Exchange and signing of contracts Once the sale price has been agreed, you’ll sign the contracts and your solicitor will facilitate the exchange. At this point you’ll need to pay the full deposit which is usually 5-10% of the purchase price. From the date the contract is exchanged, you become the owner of the property. Now is the time to consider getting it insured. Check out our information on home and contents insurance.  What you need to know about the cooling off period When you buy a residential property in NSW, you have five business days called the cooling-off period after you exchange contracts. During this period, you may get out of the contract and withdraw from the sale as long as you give written notice. The cooling-off period starts as soon as you exchange and ends at 5pm on the fifth business day after exchange. Keep in mind that if you do withdraw during the cooling off period, you’ll have to pay the seller 0.25% of the purchase price. These five days can be a good time to check the condition of the property and, if necessary, arrange pest and building inspections. *Take note: the cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in. Settlement Settlement usually takes place about 6 weeks after contracts are exchanged (although a longer or shorter settlement period can be negotiated with the seller). This is when you pay the rest of the sale price and stamp duty using your home loan and become the legal owner of the property. Your solicitor and lender will work together to keep you informed about settlement and when you’ll need to start making loan repayments. It's a good idea to inspect the property one last time on the morning of settlement day, to ensure it is in the same condition as when contracts were exchanged. After settlement, you’ll receive the keys and you’ll be able to move in! Happy days! Get in touch with the friendly team at Horizon Bank to discuss your home buying options. Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

Should I refinance my home? If you’ve been paying off your home loan for a few years now, it may be a good time to re-evaluate your home loan and ask yourself “should I refinance my home?" First let’s look at what refinancing is, and the pros and cons. Refinancing – what is it? Refinancing is moving your home loan to a new product with a more competitive interest rate or better features than what you currently have. This could be with your current lender or a new one, depending on eligibility requirements. You can save money by switching to another loan, by having lower repayments or by not paying loan administration fees. However, the key question you need answered is “when should I refinance my home?” Let’s look at that next. When should I refinance my home? If you’ve been on a fixed rate loan and the end of the term is coming up, now would be a good time to look for a better rate. If you want to consolidate debt, or are struggling with repayments, refinancing to a basic ‘no frills’ home loan may be an option worth considering. Accessing equity in your home for renovations or to purchase another property are also reasons to refinance. If interest rates are starting to rise you may consider changing your variable home loan to a fixed home loan. A fixed loan will give you the peace of mind of knowing your repayments will remain the same over the course of the fixed period. When shouldn’t I refinance? Some key scenarios where refinancing may not be financially viable is if you’re about to move house. When you sell you're settling your loan on that property and likely taking out a new loan for another property anyway. Other times where refinancing may not make sense is if you're still making repayments during a fixed rate term, or if you own less than 20% of your property value (as you’ll likely have to pay lender's mortgage insurance again). Using a refinance rates calculator can help you work out whether you'll save or spend money by switching your loan. If the value of your home has fallen, you’ll find yourself refinancing in negative equity. This is not ideal, as you're paying more for a home than what it is worth. Put off refinancing and make regular weekly or fortnightly repayments to get on top of your repayments (if the original idea was to refinance to a lower rate)  Review Your Current Loan  Work out how much you’ve paid off and how much you’ll be paying in interest over the remaining life of your current loan.  Also ask yourself if your loan’s features are still working for you or if you’re looking for something extra. Redraw facilities and offset accounts are just some of the features available to you when you refinance. While you’re reviewing your loan, take into account any ongoing monthly or annual fees you’re likely to be paying. Check out how much it will cost to exit your current loan. This means taking note of any early exit or termination fees. If you have a fixed rate loan these are likely to be quite high, which may outweigh the benefit of refinancing. There's no harm in asking your current lender for a better deal. Do a Home Loan Comparison   The home loan and lending market is very competitive and there are many options to choose from. When shopping around for current refinance rates, the key things to look out for are fees and ‘introductory’ or ‘honeymoon’ rates. Check to see how long they last before reverting back to a higher standard rate. Keep in mind that not all rates are available when refinancing, which is likely to happen if you want to stick with the same lender. Some lenders do not accept refinances for certain loan products, instead they’ll be for new business only. Use our loan comparison calculator to see how much different home loans will cost you. If you're looking to refinance your Home Loan to Horizon Bank, but are not sure where to begin, get in touch with our friendly team today and let us help you on your journey.  Horizon Bank has a branch network spanning the NSW South Coast and Illawarra. Horizon Bank branch locations: Albion Park, Bega, Bermagui, Berry, Merimbula, Moruya, Nowra, Thirroul, Ulladulla & Wollongong. The content in this article has been prepared by Horizon Bank for general information only and it is not intended to be professional advice. It does not take into account your objectives, financial situation or needs. You should seek your own legal, accounting, financial or other professional advice where appropriate, and consider the relevant General Terms and Conditions before deciding whether to acquire any products or services offered by Horizon Bank and/or its affiliated partners. We do not recommend any third party products or services referred to in this article unless otherwise stated and we are not liable in relation to them. Any links to third party websites are for your information and we do not endorse any content on those sites. Horizon Credit Union Ltd ABN 66 087 650 173 AFSL and Australian Credit Licence Number 240573 trading as Horizon Bank.

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.

Should I sell or renovate my house? If you've been thinking about making a change to your living situation, there is much to consider such as time, money and the needs of a growing or downsizing family. Beautifully styled homes on social media are often attention-grabbing and leave us wondering how we can implement these ideas in our own homes. Renovating homes has increased in popularity due to the rise of reality TV shows such as The Block and Selling Houses Australia. The availability of inexpensive materials and DIY videos has also seen many people taking it upon themselves to make home improvements. In this article, we'll compare the pros and cons of renovating versus selling your home. So, if you find yourself faced with the decision to sell up or renovate, you can decide on the best strategy that will suit your circumstances. What's your best option? Pros To Renovating your current home Rather than selling up, many homeowners decide to renovate instead. One of the main reasons is because of the many costs associated with buying and selling real estate – advertising, stamp duty and sales commission to name a few. Carrying out renovations on your existing home comes with some real advantages. Renovating allows you to: Increase the value of your home – quality renovations are often an effective way to add value to your home and potentially sell it for a larger profit later down the track. Boosting rental income – If you're looking to rent out your home, minor renovations can be a good way of increasing rental income. Talk to a local real estate agent to get their view on how your property could be improved. Ask what renters are looking for in the area to give you an idea of how to increase your property's rental appeal. Improve the functionality and comfort of the home – this is especially true if you are widening rooms, hallways, adding rooms and increasing storage spaces. This is the time to update all those things that are out of fashion or dysfunctional. Remain where you are – updating your current home can be a great way to modernise it and give you extra years enjoying your time living there, creating a family home that can be enjoyed for years to come. Lower energy costs – if you are renovating your kitchen, this can be achieved by upgrading to more efficient appliances. If you're considering renovating your home, check out our range of home loans that can be used for renovation costs. Or, if you already have a home loan with us, ask the lending specialist at your local branch about your options. Cons To Renovating your current home Time – a renovation project is often thought of as a job in itself. Will you have the time to manage the renovations or get a builder to see the job through completion? How many months will the build take, and will it suit your household to be living in discomfort for a while? On a separate note but not unrelated to time, you will need to do your research on what council permits and approvals will be required. Check your local council website as a starting point. You will most likely require a planning and building permit as a minimum. Budget – how much can you realistically afford to spend, and will you be able to include all the changes you want, or will you have to sacrifice something? These are all helpful questions that will assist you in deciding whether to go ahead or not. Check out our article on budget renovations for more tips.   Selling your property Allowing a real estate agent to do all the work for you in selling your property is an attractive choice. As the client of a real estate agent, they will set out to get you the best price available for your property. Additionally, selling your home is a great choice if you have built up considerable equity, or if there isn't enough room for renovations to substantially improve your living situation. Before you decide whether to sell your property, it's worth calculating what it could sell for. Checking home sales websites is a good place to start to see what similar properties have sold for in your area. Also, you can ask a real estate agent for a market evaluation too. After working out what your property is worth, you can then consider costs of selling including: marketing expenses stamp duty for the purchase of your next home real estate agent commission moving costs solicitor and legal fees finance At Horizon bank, we are here to help you with your home loan needs. Whether that's to renovate or buy a new home. Get in touch with our friendly team today and let's chat about your plans. We have branches conveniently located across the Illawarra, so you can speak to a local person. 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.

Not all banks were created equal. Which is why it’s important to know what banking services are offered so that you can decide on what is best for you based on your own personal finance needs. As a customer-owned bank, we have a range of banking services available for our members accompanied by personalised customer service to support those in our community. In this post, we highlight the key banking services we offer. Internet Banking Horizon Bank offers the latest online banking services for members. It is easy to register for Online Banking, not to mention free! Apply online or by phoning your local branch. You’ll be setup and can then log in with your member number and your own password. The best way to access online banking is from a desktop computer, however you can still log in using a tablet or iPad. We understand that our members need banking services that are flexible and accessible especially given the events of 2020. Manage your loans and accounts all in one place. If you need assistance, you can always contact us during business hours for help and support. Insurance We're pleased to offer our customers a range of insurances through CGU. Each insurance product provides a range of features with competitive premiums. The insurance products on offer include Home & Contents insurance, Motor Vehicle insurance, Farm insurance, Business and Commercial insurance, Caravan insurance, Boat insurance, Landlords insurance and Travel Insurance. We pride ourselves on offering our members a range of insurances all in one place. That is why you can also purchase a CTP Green Slip through QBE from us. We can provide quotes on insurance over the phone or in person at your local branch. Alternatively, get in touch with us online about an insurance quote. Loans At Horizon Bank, we have a range of loans including: Owner Occupied Loans Investment Loans New Car Loans Used Car Loans Personal Loans A low rate credit card Overdraft facilities We offer fixed home loans and variable home loans and investment loans. Any loan application can be completed online. Our lenders at each branch are happy to walk you through your application over the phone and will assist you at each stage of your application. Of course, you can always walk into a branch and speak with a lending specialist if you prefer a face to face consultation. We offer competitive rates and have a range of loans to suit anyone no matter what life stage you’re at. Being a local bank means all of our business operations stay local. You won’t be waiting weeks for loan approval, we can provide approval within a week allowing you to move quickly on that dream property you’re after. Check out these google reviews about our home loans. Savings Accounts If you’re wondering which type of bank account is best, we have an extensive range of Savings Accounts, including the Reward Saver, Cash Management, Horizon Direct, Christmas Club, Business savings and more! We have savings accounts for our young members, for members aged 55 and over, as well as term deposits that anyone can open to lock away larger sums of money. All savings accounts can be viewed through our Online Banking and the Horizon Bank app. This gives our members greater convenience to manage money on the go. As a customer-owned bank, our services are here to help you experience a higher level of personal banking. Get in touch with us today regarding any questions you may have about how we can help 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.The advice on this web page is general advice only and does not take into account your individual objectives, financial situation or needs ('your personal circumstances'). Before using this advice to decide whether to purchase or hold this insurance policy, you should consider the appropriateness of it having regard to your personal circumstances. Horizon Bank ABN 66 087 650 173 acts under its own Australian Financial Services Licence (no. 240573) and under an agreement with the insurer, Insurance Australia Limited ABN 11 000 016 722 trading as CGU Insurance (CGU). Backed by IAG. Insurance is issued by CGU. You can get a Product Disclosure Statement (PDS) for the products from any branch of Horizon Bank or CGU. You should consider the PDS in deciding whether to buy or hold the product.CTP Green Slip insurance (CTP) is issued by QBE Insurance (Australia) Limited (ABN 78 003 191 035, AFSL 239545) (QBE). Horizon Bank (ABN 66 087 650, AFSL 240573) is authorised to distribute CTP as an agent of QBE and is remunerated by QBE. Please read your CTP policy for further information before purchasing CTP. Horizon Bank does not provide any advice based on any consideration of your objectives, financial situation or needs. Terms, conditions, limits and exclusions apply. Before making a decision please consider the Product Disclosure Statement.