News - 14 April2009

HAPPY EASTER TO EVERYONE

The Alpha Update

Deal with the Problem Early...

I have been working with a number of clients recently who have financial problems, including the recently redundant, some with small but out of control debts, and some with substantial debt to a variety of lenders from banks to cash loan companies. No one likes admitting they have a problem, but it is critical that people admit there is a problem, GET PROFESSIONAL ADVICE and GET HELP EARLY!

There are a number of options open for clients, depending on the severity of their situation. Banks are now offering mortgage holidays in some circumstances, budgeting advice can help many, and debt consolidation is normally available even for those who have a number of finance company debts. But the key is complete disclosure up front, and a pro-active stance to dealing with the issue. Even if the best solution appears to be to sell your property, it is always better to be in control of the process yourself rather than be the subject of a mortgagee sale.

Who do you know that might be having financial problems of some kind? Get them to call me TODAY on 021 676747 or 0800 676 747 to get professional advice and DEAL WITH THE PROBLEM EARLY!

Food for Thought

We are not what we know. We are what we are willing to learn." Anon

What's New??

• The next Property Plus Seminar ....

THE ONLY WAY OUT IS UP - Making the most of the Recession. click here for more details. 20th April 7.15pm

• Tax cuts which have changed lender servicing calculations

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

Economists are picking a small drop (0.25%-0.5%) in the OCR on 30th April when the Reserve Bank next meets. However, if Australia is any guide, the banks may not pass any or only some of the reduction on to borrowers. They justify this because of the heightened cost of raising funds offshore. These markets are easing, but very slowly. Generally interest rates have been quiet, with few substantial movements - certainly no decreases in long term rates. Latest expectations are for floating and fixed rates up to 2 years to stay low for some time to come.

The kiwi jumped again to almost 60 cents US early last week after positive comments from the G20 Summit, but eased slightly as the news was more fully digested. The kiwi is likely to weaken again if the Reserve Bank cuts interest rates again at the end of the month

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Tuesday 14 April 2009 the following Interest Rates applied:
Official cash rate 3.00% (stable)
90 day bill rate 3.20% (down slightly)
5 year swap rate 5.01% (stable)
NZ/US Dollar 0.5919 (up)

Current Range of Interest Rates for home and investment mortgages as at 14 April 2009

Floating:
5.99% to 7.95% (stable)

Fixed For:
1 Year - 5.49% to 6.79% (down slightly)
2 Year - 6.00% to 6.99% (up slightly)
3 Year - 6.50% to 7.25% (up)
4 Year - 6.99% to 7.55% (up slightly)
5 Year - 6.90% to 7.75% (up slightly)

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.