News - 1 September 2008

The Alpha Update

Fixed Interest Rate Renewals

The first day of Spring and the sun is out! Hooray!!

Many clients have, or will in the next 3 months, receive a letter from their Bank saying that their fixed rate is due for renewal. The easy option is just to sign their letter and send it back....

Is that the best option for you??

Lenders are still fighting hard to retain existing business and grab new business if they can. Interest rates and renewal fees are negotiable. The best option is to talk with a wide range of lenders - but who has the time for that??

By calling Alpha Financial Solutions, we can do the interest rate shopping for you, so that you can make an informed choice, rather than accepting the default option. Better still, we can organise the refix process for you, or review your finances and refinance with an alternative lender if appropriate.

If you or someone you know (neighbour, friend, family member) has had a refix letter in the past month, or gets one soon, get them to give us a call. No obligation and no cost, so what do you have to lose? Call us Today on 021 676 747 or 0800 676 747 for a Free Review of your interest rate options. WE CAN HELP!

Food for Thought

Happiness is a perfume you cannot pour on others without getting a few drops on yourself.  -- Anonymous

What's New??

• Many Lenders moving to risk based pricing
• Private lenders still have funds for quality deals

If you or anyone you know wants to know more about any of these products, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

The Reserve Bank is almost guaranteed to drop the Official Cash Rate again when it meets next week. Market commentators are predicting a further 0.25% drop. Current interest rates have already priced in these expected drops, so it is unlikley that we will see substantial falls because of the drop. What might occur is some reduction in the floating rate, which would help business borrowers particularly. Local rates have been very steady in the past fortnight.

After a major dive in the last month, the kiwi has recovered some ground and has settled around 70 cents US and 81 cents Australian. The Australian Government is likely to reduce interest rates later this week, so further strengthening against the aussie is possible. A sideways track is likely unless there is major improvement in the US market.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 1 September 2008 the following Interest Rates applied:
Official cash rate 8.00% (stable)
90 day bill rate 8.17% (down)
5 year swap rate 7.10% (stable)
NZ/US Dollar 0.7050 (up slightly)

Current Range of Interest Rates for home and investment mortgages as at 1 September 2008

Floating:
10.20 to 11.00% (stable)

Fixed For:
1 Year - 9.05% to 10.85% (stable)
2 Year - 8.84% to 10.65% (stable)
3 Year - 8.85% to 10.55% (stable)
4 Year - 8.90% to 10.35% (stable)
5 Year - 8.95% to 10.35% (stable)

For a complete table of interest and exchange rates, click here.

The information stated herein was correct at the time of release, but is subject to changes without notice.