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Choosing a savings account really depends on the purpose and goals you are working towards. If you are looking for the best way to save money for Christmas for example, then a Christmas Club account might be ideal for you. Or, you may want to reward yourself by earning interest on your savings. If this is the case a high interest account like our Reward Saver account is the way to go. In this post we look at some of the benefits of savings account options based on your savings plan. Define Your Savings Goal Have a think about your savings goals - what are you looking to achieve? This will help you decide what type of savings account you need. There are three basic savings accounts that are commonly used: Everyday transaction accounts High interest savings accounts Term deposits When defining your savings goal, it will help to make a list of what is important to you – it might be saving for a holiday, new car, or for your family’s future. It is also worth thinking about the savings plan term - is it a short term savings or long term savings plan? It is best to use a term deposit to save for long term savings plans, as you can assume you won’t need the money straight away. Reward savers and other high interest savings with flexible access options may be better for short term savings goals. Consider Your Budgets & Spending Habits In order for any savings plan to work to achieve your goals you do need to consider your budgets and spending habits. It is always a good idea to review your spending, subscriptions and any fees you’re paying. It takes time to create new habits, so start by assessing your expenditure and where you can use some of this to save money. Look for ways to cut back and make the money you earn go even further. Priority should always be given to paying off debts, then saving, then other expenses where possible. To give you motivation, use a savings calculator to see how much interest you could earn for your short term and long term savings plans. Note: you’ll need to adjust the interest rate slider to what is applicable. What Are The Benefits? After defining your savings plan goals you may consider the savings account options below. These can help you find the right balance based on your goals, term of savings plan and budgets. An everyday transaction account The benefit of these is they usually have no access restrictions, and you can link Visa debit cards to access your money. Everyday transaction accounts are the place to have your pay deposited into, and any other income such as government payments or rental income. A high interest savings account A pro saving tip is to put the same amount of money away into a savings account each week or fortnight. The benefit of these savings accounts is that bonus or reward interest is often forfeited, if you withdraw money. This encourages you to put money away and not withdraw it. A term deposit The third type of popular savings account is actually a term deposit. Money is ‘locked away’ for a specified term. Usually anywhere between 1 month and 3 years (depending on how much you want to deposit) The benefit of a term deposit is that interest is paid monthly or at maturity (at the end of your term). You also have a couple of options to reinvest your original amount with interest earnt, or withdraw the funds. There is a lot to consider when choosing a savings account to maximise your savings efforts. If you’re looking for support with choosing the savings account for your needs, get in touch with us today. We’re here to make the process easy and provide a great experience. 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.

Are you in the market for a used car? There is a lot to consider just as with any major purchase, such as where to buy your used car from and how much you want to spend. In this post we look at the considerations you need to make before deciding on applying for a used car loan. We’ll also discuss how to go about applying for a used car loan and the benefits of having one. Let’s begin with the following considerations before buying Your budget. Working out how much you can afford to spend is the first step before you go looking. Using valuation sites like Red Book will guide you on the value of any cars you’re interested in. Your needs. What will you use the car for? A growing family may mean a bigger car, or a smaller first car might be more useful for someone to practice driving. Safety & Security. What safety and security features do you want your car to have? Newer used cars may have better safety ratings so it is important to do your research. Insurance and green slip costs. We require car loan customers to have their vehicle comprehensively insured. You can visit our page on car insurance for more information. We also offer CTP Green Slips. Environmental impact. You can check the car's fuel consumption and emissions rating by using the Australian Government Green Vehicle Guide. Dealer, auction or private sale? Decide where and how you want to buy a used car. Regulations. There are a number of checks and reports you can access when buying and selling used cars. More information on the Service NSW website.  Money owed: It’s a good idea to check if there is money owing on the car. See the PPSR website for more information. Applying for a used Car Loan - Get pre-approval It is important to ensure you know how much you can afford. Use our car loan repayment calculator to estimate how much repayments will cost you. Securing pre-approval before buying a car is a great way to know how much you can borrow. Our used car loans have a loan period of up to five years. Speak with one of our lenders about extra loan features such as paying off your loan early and redraw facilities. They’ll also talk to you about taking advantage of our competitive rate. You can view our used car loan rate here. We also have a guide on frequently asked questions for our car loans. Secured or Unsecured? To put simply, when you take out a secured loan, you are offering up something as collateral should you be unable to repay your loan. You can secure your used car loan with a vehicle, savings or even your mortgage, subject to eligibility criteria. You may have the option to take out an unsecured loan for your used car, but you may be repaying it at a higher interest rate than a secured loan. Benefits of a used car loan Flexible repayment options Having a used car loan will allow you to make repayments to suit your budget and income. Having the flexibility to pay weekly, fortnightly or monthly will help you manage your expenses. You can use our budget pay calculator to see how your used car loan repayments will fit in with your expenses and affect your savings ability. Instill money management habits If a used car loan is your first experience with repaying a loan, it will require disciplined saving and money management. You must make regular repayments to avoid falling behind, which will force you to prioritise your spending. Building your credit report Getting a used car loan helps you build a credit report. This can be very helpful when applying for other loans in the future. You can read more about credit reports on our website. Speak to one of our lenders before applying to determine eligibility, as applications for credit that are denied are recorded on your credit profile. If you’re looking for a Used Car Loan, get in touch with us today. We’re here to make the process easy and provide a great experience. 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.

Working from home is now the new norm for many of us, which means interacting with colleagues and conducting business a little differently. The rising popularity of online meetings has seen businesses using platforms such as Zoom, Go To Meeting and Skype for video and audio conferencing, collaboration, chat, and webinars across mobile devices, desktops, telephones, and room systems. In this blog, we’ll look at some online meeting tips for you to get the most out of your virtual meetings. Before you begin a meeting Consider your environment and background. Tidy up your area to remove anything that’s distracting or inappropriate for your meetings. You want to present professionally and as someone who can be trusted to do good work. See if your virtual meeting tools provide virtual backgrounds to help you disguise even the most cluttered environments. A quiet space is ideal for a meeting to clearly hear what is being said and to avoid distractions. Barking dogs and slamming doors are annoying in person and via online meetings! A key Online meeting tip is to mute yourself as necessary. Familiarise yourself with this feature before you begin. You also need to consider the lighting in your space so the meeting’s participants can see you clearly. Position yourself so that most of the light is coming from in front of you (behind your monitor or digital device if using an app). If you have a window behind you, shut the blinds. Otherwise, the natural light will cause you to be backlit. Take note of where your camera is pointing and adjust accordingly if it is too low or high. Only your barber or hairdresser wants to stare at the top of your head. Your camera should be at eye level, with your face and torso visible. Testing your video and audio first is also a good idea to avoid wasting time during your meeting. During your meeting When speaking, try and look directly at the camera to mimic eye contact with the other meeting attendees. This takes a bit of getting used to since it is easier to look at the other participant’s faces. It’s important to see people’s reactions and facial expressions by looking at the screen, but alternating that with looking at the camera makes the audience feel like you’re really talking to them. Don’t get too close to the camera. Your meeting participants will hear you from an arm’s length away. Position yourself so the camera is seeing you from the chest or waist up, instead of just seeing your face. This is more natural for the viewer, as this is what you see in an in-person meeting. Correct positioning is especially beneficial if you tend to gesture a lot. Keeping people engaged is especially important in an online meeting. A virtual meeting best practice tip is to use any engagement tools on offer. There’s screen sharing, annotating shared content, sending out a quick poll, asking for feedback in chat, splitting your attendees up into video breakout rooms or you could even send attendees to a website and have them fill out a pre-prepared Google Document (Google Docs are just like a Word document, only they're stored in your google account and can be shared with people to work on) Do whatever it takes to keep your attendees actively engaged. After your meeting If you recorded your meeting, share it with meeting invitees who couldn’t attend so they don’t miss out. Send out an email with any actionable items for the participants and schedule another online meeting if necessary. As the host, you can always ask for feedback on the meeting content, length of time, visual and audio clarity so you can improve for next time. Horizon Bank is here to help. If you’re looking for more tips on how to successfully work from home, check out our working from home article here.  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.

Good financial management allows you to map out your goals and strategies so that you can achieve them and get more out of your money. These should be done and reviewed regularly as you move through the different stages of life. In this post we look at some of the ways you can maximise your money, which can help you achieve success with tangible goals like retiring earlier, investment returns, or spending less of what you make. Speak To Someone With finance expertise Get financial advice! Speaking with an experienced financial planner is the best way to understand your financial position, and the steps you can take to give yourself a comfortable future. The top three areas you might want to discuss with a financial planner are: Budgeting - being able to factor in budgets for holidays or upgrades to the house can have a positive impact on your family. Getting out of debt – debt consolidation can be a great way to reduce the many repayments you have outgoing to different loans. Eliminating or consolidating debts will reduce the burden of interest and loan repayments. Check out our article on debt consolidation. Savings and investments – after making a budget and reducing your debt, you may feel financially comfortable to look at different savings and investment options. ASIC’s Money smart website has a list of investment options that a financial planner can explain to you in more detail. Your Family Plans - Building a bright future As we mentioned at the start, you and your family will move through different life stages. Financial needs and obligations change when children are born, as they grow and when they leave the family home. Having a good plan in place with achievable goals will ensure your finances get you through these stages. For example, learning how to make a budget and save money may be more important during your children’s early years until they are young adults with jobs. This all depends on the type of lifestyle you and your family want to live. Having a thrifty attitude is an excellent money saving tip, and can see you save money throughout the year by following these simple actions. Shop around for the best deal on purchases Change small spending habits e.g. taking your lunch to work rather buying it Review regular expenses Retirement Plans - Staying comfortable and independent It’s not just the immediate future that you need to consider, with more of us living longer, retirement must also be considered even if it feels like a long time away. To have a comfortable retirement, and possibly even an early retirement, it’s important to learn to save money, and make contributions to superannuation if feasible. Enjoy your senior years without the financial stress. Nobody wants to be a burden to their children so it’s important to have a plan in place to stay comfortable and independent in retirement. Speak to a financial planner or use the retirement and superannuation pages on ASIC’s site for more information.  If you’re looking to maximise your money, get in touch with us today. We’re here to make the process easy and provide a great experience. 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 arti​cle 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.

Most of us now find ourselves working from home amidst the Coronavirus outbreak, and for some it will be the first time. Read our article for working from home tips for success. Create your space and stay organised A dedicated space to work at with a comfortable chair is likely to keep you productive throughout the day. Set up a home office in a study or other available space in your home and keep all of your work documents and other work related files within easy reach. Stand up desks are great to give you a break from sitting (and if you have the room!) Gather your resources Working from home will be a success if you have everything you need to use like you would on a normal day. This includes work colleague and industry contacts, passwords and logins, as well as resources and materials you would normally access. Stick to routine Get up at the same time as you normally would to go to work. It’s important to bring some normalcy as you’re adjusting to working from home. Having breakfast and getting dressed will make you feel ready to start the day. Be sure to schedule in daily tasks at the same time as you would complete them in the office. Stay connected Chat with work colleagues regularly to stay up to date with what they’re working on and to keep updated with how the business is going overall. Working remotely means no Monday morning catchups to hear about everybody’s weekend, or people stopping by your desk for a chat as they pass by. These interactions are greatly minimised when working from home which can lead to feeling isolated and ‘on the outer’. Remain relevant Looking for motivation to keep up productivity? Without being in regular contact with your team or boss, people can easily forget what you’re up to and what projects you’re working on. Stay relevant by continuing to work hard and deliver on results to show that you are adaptable and committed to working hard even while adjusting to working from home. Be prompt in your email replies and ask how others are going with their work. Stay Focused With distractions such as kids, pets and partners interrupting the flow of your work, it can be easy to lose focus when working from home for long periods. It often requires us to re-evaluate our priorities, and practice greater discipline and focus. Now is the time to be able to set boundaries which will be easier if you clearly communicate this to your partner. Remember health and safety practices Keep up your productivity by eating regular healthy meals and getting up for a walk or stretch every 45 minutes or so. It’s important to keep breaks up, especially because we may work for longer periods of time. Keep phone and social media time to a minimum to avoid distractions. If you’re using a laptop you might find it hard to switch off at the end of the day. Another working from home tip to help you switch from office mode back to home mode, is to use strategies such as moving your workstation to the end of the dining table, putting it away or covering it up at the end of the day to signal when you are and aren't working to the other members of your household. It’s important to keep in touch with your essential services for any changes to your banking or finances. Our branches remain open and we’re here to support our members. Get in touch with us today if we can be of assistance. 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.

In this blog, we’ll compare the different ways you can take money overseas. Organising your money should be the first thing on your travel checklist. We’ll look at the pros and cons to give you the best information to takeaway with you, and to help make an informed decision on taking and accessing money overseas when travelling. Cash It is always useful to have a small amount of foreign cash on hand, for small purchases such as water, public transport tickets, little souvenirs and so on. Depending on where you go, some small retailers and market stalls may only accept cash. Unfortunately cash can be a safety risk so ensure it is secured on you at all times because if stolen, there’s no way to get it back as it cannot be traced. Be as prepared as you can and do your research ahead of time so you're taking the best travel money type with you. To compare travel money, you can use our foreign exchange rate calculator to keep an eye on rate fluctuations, so you get the most out of your Australian dollar when you’re converting money. Ordering foreign cash from us is easy and hassle-free. Order before midday to have major currencies (US Dollars, British Pounds, Euro and New Zealand Dollars) delivered to your branch the next day. Credit Cards Credit cards are a convenient option for taking overseas as there is no need to open a new separate account and they’re good for accessing money in emergencies. They can however be a risk for scammers and card skimming so you need to keep an eye on where you are swiping or inserting your card. Where possible, avoid swipe machines. Inserting your card to read a chip is much safer. Conversion fees may apply and could be a flat fee or percentage of your purchase. Travellers Cheques Are great because they never expire and they can be replaced if lost or stolen. They’re also less risky than cash as you need ID and a matching signature to cash them. However, with the rise of debit cards and travel money cards, travellers cheques are no longer widely accepted and are expensive to purchase. Travel Money Cards These cards are pre-loaded so you can easily stick to a budget and limit your spending. Complete a travel currency comparison to get the best value on exchange rates then load your card before you go. Check for fees on using the card in an ATM and the fee to payout the remainder on your card. Most issuers come with an app so you can top up your card using your mobile phone while you're away. Visa Debit Cards With a Horizon Visa debit card you’ll be spending your own money, so you can keep track of your purchases through our mobile banking app and internet banking as you would here in Australia. Visa is accepted worldwide so you won’t have trouble making purchases. Keep in mind that a currency conversion fee may apply to overseas debit card transactions and ATM withdrawals. *Tip avoid suspect ATMs by only using ATMs that are attached to a bank where possible. Want to know more about ordering foreign cash or find out about any fees associated with international transactions? Contact us today and we’ll be happy to help you with your query. Are you planning a trip and looking for a quote on travel insurance? Get in touch with the friendly team at Horizon today for a quick obligation free quote. 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.

In this blog we’ll look at a few of the common mistakes people make while organising a holiday and travelling overseas. We’ll discuss some solutions to these common money mistakes to make your travel plans easy and hassle free. Mistake 1: Waiting until you arrive at your destination to work out a spending budget Not having a holiday spending budget pre-planned before you leave is a mistake you can avoid with some careful pre-planning. The last thing you want to do is to be spending your first day at your destination working out how much money you have to spend each day. Planning your spending budget should start before you plan your trip. This is a great money travel tip as it will give you enough time to save and keep an eye on foreign exchange rates. The best thing to do is to set yourself an amount for each day of your trip, allowing for meals, transport, entertainment, tours and souvenirs. Mistake 2: Not planning for the type of money option you will use while travelling Arriving at your destination and not knowing what s accepted or used will make it difficult to eat out, buy tickets and get around. Do your holiday money research ahead of time by asking your travel agent what form of payment is most widely accepted in the country you’re visiting. You can also send an enquiry to the hotel you’re staying at. The staff there are locals who can help with your query. It’s always best to have two types of money options on you. For example, you may opt to have a certain amount in foreign cash and the rest on a travel money card. Mistake 3: Researching your destination when you arrive Visiting a different country is an exciting new experience. To get the most out of your trip, you should research the destination well in advance. Understanding local customs will not only help you deep dive into a new culture, but it will also mean you won’t offend anyone. For example, providing a tip at restaurants, cafes and to service people is expected in some countries. Researching this ahead of time is a good idea, as you will know how much is appropriate and you can account for it in your holiday money spending budget. Another great travel money tip is to understand what the right price is for common items such as bottled water, small meals, transport and souvenirs. Do your research before you go by reading online blogs or asking people who’ve been to the country you’re visiting before. This way, you’ll be well informed about the right price for things, and won’t feel like you’ve paid more for something you shouldn’t have. Mistake 4: Forgetting About Travel Insurance Don’t forget to organise travel insurance with the appropriate level of cover well before you take off. Don’t let lost luggage or cancelled flights ruin your holiday! Getting a quote online or over the phone from us is easy and only takes a few minutes. There may be different levels of cover to choose from ranging from the experienced multi-trip traveler to a basic level of cover covering unexpected overseas hospital and medical costs. Are you planning on travelling overseas and need some extra help with getting your trip organised? Get in touch with the friendly team at Horizon today and let us help you with your travel insurance and foreign cash. 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 credit cards were created equal. When thinking about applying for a credit card there are many things to consider. This includes the benefits of having a credit card and how you can make the most of this type of credit facility. In this article we’ll also discuss the potential benefits and disadvantages of upping your limit. Safer than Cash Credit cards can be seen as a safer way to access money. If you accidentally lose your wallet or purse a credit card can be cancelled by calling us. Or you can lock your card in our app while you search for your card so no transactions can be made. Build Your Credit Rating If you’ve never applied for a loan, having a credit card can help you build up a credit report and credit score. This then provides information to lenders if you apply for other products like car loans or a home loan. Emergency Line of Credit Life can sometimes be unpredictable. A credit card allows for an additional line or access to credit you may not have sitting in your savings account. You can avoid the stress of emergencies by keeping a credit card for those situations where you find you need money quickly. Consolidating Your Debt If you have multiple credit cards, it may be worth speaking to a lender about consolidating them. Our credit card has a low introductory 5 month rate and no annual fee. This can save you money on interest charges and with a regular repayment schedule, help you reduce debt faster. Credit card limits Once you’ve got the hang of using your credit card, you may be tempted to increase your limit. We’ll compare the potential pros and cons of having an increased limit so you can make an informed choice about what is best for you. Potential benefits of increasing your credit card limit An instant benefit of increasing your credit card limit is that you’ll have access to more funds once approved. Our credit card has an interest-free period of up to 55 days, which can be a useful tool to help you maximise your cash flow. This only works if you repay the full balance on time every month to avoid interest. Increasing your limit for a purpose such as overseas travel or to purchase a major appliance can come in handy if you don’t have the time to save for those things. Be wary of uncontrolled spending; it’s important to know your own limits and manage your expenses. Paying for day-to-day expenses on your credit card and paying your full balance on time every month will mean that funds you’ve set aside to cover these purchases can be instead working for you in a savings account.  Possible risks of raising your limit An increased credit card limit may also increase your temptation to spend money. It may be better to keep a lower credit limit, that way you have a control in place to not overspend whilst still having the advantage of a borrowing safety net. Your monthly interest payments will also increase with a higher limit. You would need to factor this into your budgeting to ensure you can afford the extra costs. Your ability to get credit elsewhere may be impacted as an increased limit may appear on your credit report and reduce the amount of credit that can be lent to you in future. Your credit card limits (not credit balances) and existing debts are taken into consideration when a lender decides how much they would consider offering to you as a loan. A higher limit means they may offer you less than you were hoping or even decline your application altogether. For example if you only owe $500 but have a $10,000 limit on your credit card the lender will note the $10,000 limit as your debt, not the $500 owing. Important bits to takeaway It is important to understand your current financial situation before taking out a credit card or contacting your card issuer about your credit limit. This includes anticipating your likely future spending patterns based on current and past behaviours and situations that have affected you. A useful online resource such as our budget planner calculator can help you work out how much money you’ll have available each month to make credit card repayments. Thinking of applying for a credit card or want to know more about how to use one effectively? 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 does it mean to have equity in your home? Equity is the difference between the current market value of your home, and what you still owe on it. Equity in your home can help you achieve your property goals. How do you calculate total equity? You can use a simple formula to work out the equity in your home. You will need a property valuation for an accurate figure, but if you know the current market value of your home, you can minus what you owe on your home from that value: Example: $680,000 (market value) - $300,000 (mortgage balance) = Equity of $380,000. Note: You can borrow up to 80% of the property value. If you need to borrow more, you will have to pay lenders mortgage insurance. A property valuation is an important factor in determining equity, and therefore your ability to purchase another property. How to build equity in your home Your equity increases when your property value goes up, and your mortgage balance reduces. Tips for building equity include:  Making renovations and improvements to your home to increase its value.  Making larger mortgage repayments.  Saving money by opening an offset account, so your savings are offset against your loan balance, reducing the interest paid on your loan. Using equity – how does it work? After gaining a property valuation, (we will organise this for you) and assessing your ability to repay an investment loan, once approved we will take security over your home and your investment property. Depending on your situation, you may be able to borrow against the equity and take on an additional loan, or increase the loan you have currently. What additional factors do I need to keep in mind? Borrowing against the equity in your home is not always guaranteed. A lender will take into account a number of things, including your income, existing debts and whether you have dependent children. As with any property, the purchase price is only one component of the upfront and ongoing costs you’ll need to pay. Stamp duty, legal and conveyancing fees, and building, pest and strata inspection reports, can all be applicable and will need to be budgeted for when you do your pre-planning. Things to consider  How much will loan repayments increase by and can you afford them? Use our budgeting calculator to find out.   Do you have the savings to accommodate for government and additional costs?  Who will manage your investment property and what rent will you charge?   Are you across the legal obligations that apply to landlords?   Will you be eligible for tax deductions?   Be aware of any restrictions on your home loan that can prevent you from making additional repayments or accessing the equity in your home.  Talk to a Horizon Bank lending specialist today about how you could use equity for your next property venture. 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.

With pre-planning and research, you can ensure you are on the right track to set yourself up for success when buying a home. Follow our easy home buying guide below to get an idea of how you can break into the property market. Determine How Much You Can Afford Using our home loan repayment calculator is the first step in understanding how loan repayments work and gives you an idea of how much you can afford to borrow. Determining affordability is about knowing your financial limits. Don’t over commit, and use foresight to think about possible future outcomes like a growing family, changes in employment and the cost of living. Save for a deposit Saving as much as you can for a house deposit before buying a home is ideal. The more you save, the less you have to borrow – therefore paying less in interest over time. Check out our blog article on saving for a house deposit. Understand your home loan options Home Loans come with many features so it is important to understand which mortgage will suit your needs. At a high level, there are fixed rate loans and variable rate loans, where you can pay off the principle and interest or interest only. Offset accounts and redraw facilities are great for saving on interest and helping you budget. Ask one of our lenders about which type of home loan would best suit your needs or you can check out our Home Loan Comparison table. Get Home Loan Pre-approval Getting pre-approved with Horizon is easy and worthwhile, as it lasts 3 months which gives you plenty of time to research the property market and make an offer on properties you know you can realistically afford. Consolidating or minimising debt will not only improve your overall financial wellbeing but also make you a strong candidate for pre-approval. To learn more about lending and home loan pre-approval with us, check out our page on the loan pre-approval process. Research suburb profiles The suburb you purchase in can affect things like ability to rent and resale value. Research suburb profiles online for the demographic of people living in that suburb, average incomes, house prices, rental yield and auction clearance rates. All of this information will help you determine the best area to buy in. You can always ask real estate agents for any available information at open houses. Find a Home in Your Price Range It’s important to buy something you can actually afford. This is why having home loan pre approval is an important first step before visiting open homes or display villages. You can then research house listings online or in the newspaper and make a note of open houses to visit. Take a trusted friend or relative as a second pair of eyes when inspecting properties so you don’t miss anything. Be sure to factor into your budget associated home buying costs such as stamp duty, solicitors fees, building and inspection reports and insurances. Let us get you on the path to home buying success. Get in touch with the friendly team at Horizon 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.