News - 1 October 2007

The Alpha Update

Spring is Here and so are the Deals!

The blossoms are coming out and daylight saving is in. And the banks have started advertising their Spring promotions.

You may have noticed that there are a range of offers starting to emerge from the trading banks. This is the start of their Spring campaign where they advertise special deals and rates to encourage homebuyers out of the woodwork

As I constantly tell clients, it is vital to look at more than just the interest rate on offer. A good finance deal is one that fits with your lifestyle and takes into account a repayment plan that works for you. Sometimes the lender will determine you’re not eligible for one of their advertised low rates because they consider you to be too great a risk.

At Alpha Group, we are experts at presenting your situation in the best possible light to obtain these deals if at all possible. We can help you find the finance package that suits you best, and we can help you structure your application to help you take advantage of the deals that are available.

If you have a tricky situation– the bank has said no; you have no deposit to buy a home; you’re asset rich but cash poor; you can’t (or don’t want to) prove your income; or you run out of money during a property development, we would love to help you.

If you or someone you know wants to find the best Spring deal for them, get them to call Stuart Duncan at Alpha Financial Solutions on 021 676 747 or 0800 676 747. We can help !

Food for Thought

Practice is just as valuable as a sale. The sale will make you a living; the skill will make you a fortune!

What's New??

• Spring Campaigns from all the lenders. Call me now to find out who is doing what!

For more information about any of these opportunities, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

Signs of competition amongst the lenders have emerged over the past fortnight, with interest rate reductions announced particularly in the 3, 4 and 5 year maturities. The banks are in a dilemma at present - flush with funds as investors seek safe havens, but seeing internal credit standards tightened due to uncertainty in the global marketplace. Flexibility and presentation of the facts in a way to appeal to a lender are key at present.

The dollar has jumped back around 75 cents against the US dollar, mainly because of the large cut (0.5%) in US interest rates by their Federal Reserve Bank. Conversely, a rise in Australian interest rates has seen the kiwi remain stable against the Aussie. Our currency will remain high until there are signs that our interest rates will drop - not likely for some months yet.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 1 October 2007 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.81% (down)
5 year bond rate 6.64% (up)
NZ/US Dollar 0.7552 (up from 0.7084)

Current Range of Interest Rates for home and investment mortgages as at 1 October 2007.

Floating:
9.6 to 10.80% (stable)

Fixed For:
1 Year - 9.15% to 10.22% (stable)
2 Year - 8.80% to 9.85% (down slightly)
3 Year - 8.60% to 10.05% (down)
4 Year - 8.65% to 9.85% (down)
5 Year - 8.50% to 9.68% (down)

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.