News - 12 May 2008

New Phone and Fax Numbers

Our NEW PHONE NUMBER is 579 4838 and NEW FAX NUMBER is 579 4395. Mobile and 0800 numbers are the same.

The Alpha Update

Making You Attractive To A Lender

Whether you are refinancing an existing loan, consolidating short term debt, or taking on a new project, there are a number of things you can do to give your application the best chance of being approved. Some of the simple ones are:

• Have as little short term debt (hire purchase, credit cards, personal loans) as possible (or be consolidating them)
• Know exactly what your income is and provide supporting evidence (pay slips, salary confirmation, rental agreements, etc)
• Know what your existing payments are on all existing debt to show how this new borrowing will impact cashflow (either up or down)
• Be upfront and honest about the bad stuff (if any). DON'T lie about it, chances are the lender will find out about it anyway and decline your loan regardless of it's merits, just because you lied!
• Use a great broker like me to present these facts in the best possible manner to the most appropriate lender for your circumstances!

Who do you know that needs help with making themselves look attractive (to a lender!)?? Get them to call Us Today on 021 676 747 or 0800 676 747. We Can Help!!

Food for Thought

Perseverance is the hard work you do after you get tired of doing the hard work you already did. Newt Gingrich

What's New??

• INTEREST RATE REDUCTIONS!
• Departure of a couple of non-bank lenders

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

A double-edged sword this time. A surprise fall in employment has resulted in an expectation of interest rates falling more quickly than previously expected. Additionally, the Reserve Bank has moved to increase liquidity in the mortgage market by accepting mortgages as security for loans from the Reserve Bank.

Wholesale funding rates have reduced because of these moves, with ASB being the first bank to drop their lending rates (by up to 0.3% in some cases). The downside of lower interest rates here will be a falling kiwi dollar, making imports such as petrol even more expensive than it currently is! Look for a small drop in the Official Cash Rate by September this year.

The kiwi has dropped by 2 1/2 cents against the US dollar and 4 cents against the Aussie in the last month. As more signs of lower interest rates emerge here, the currency will continue to fall - good news for exporters but bad news for consumers!

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 12 May 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.60% (down)
5 year swap rate 7.45% (down)
NZ/US Dollar 0.7720 (down)

Current Range of Interest Rates for home and investment mortgages as at 12 May 2008

Floating:
9.80 to 11.50% (stable)

Fixed For:
1 Year - 9.40% to 10.95% (down)
2 Year - 9.29% to 10.65% (down)
3 Year - 9.15% to 10.85% (down slightly)
4 Year - 9.10% to 10.35% (down slightly)
5 Year - 9.10% to 10.69% (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.