News - 17 September 2007

The Alpha Update

A Beginner’s Guide to Buying Your First Property

If you or anyone you know is about to embark on the process of buying their first home, it is important to know what steps must be taken (and in what order) to make the experience stress-free and enjoyable. Being well-informed and prepared through the various stages – from saving the deposit to getting the keys – can save you a lot of time and money.

Before you look at properties and visit open homes you need to know what price range you can afford and what the banks will lend you. These are just the first two (of 7) steps in the entire process:

1. Saving the deposit, and

2. Getting pre-approval from a lender

To find out more about the process and how you can get into your first home , give Stuart a call on 021 676 747 or 0800 676 747. We Can Help!

Food for Thought

Advancement only comes with habitually doing more than you are asked. Gary Ryan Blair

What's New??

• "The Beginners Guide to Commercial Property Investment" Free from Alpha Financial Solutions Ltd

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

Interest Rate and Currency Comments

There has been little activity in interest rates in recent days, as everyone (including the Reserve Bank) has taken a "wait and see" attitude. There was no change to the Official Cash Rate, resulting in stability returning to short term mortgage rates. Kiwibank has started an early spring campaign with a big reduction in their 3 year fixed rate, but how sustainable that will be is questionable. Significant uncertainty remains amongst mortgage lenders, and credit policy is tightening.

The dollar is settling around the 70 cent US mark, although with fluctuations of a cent either way quite regularly. Our interest rates will continue to hold up demand from global investors.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 17 September 2007 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.85% (up)
5 year bond rate 6.47% (down)
NZ/US Dollar 0.7084 (up from 0.7028)

Current Range of Interest Rates for home and investment mortgages as at 17 September 2007.

Floating:
9.6 to 10.80% (stable)

Fixed For:
1 Year - 9.20% to 10.15% (stable)
2 Year - 8.95% to 9.95% (down slightly)
3 Year - 8.60% to 10.05% (down)
4 Year - 8.90% to 9.85% (stable)
5 Year - 8.80% to 9.68% (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.