News - 18 February 2008

Thanks to all those who responded to my newsletter survey. Your comments will be integrated into newsletters over the coming months.

Congratulations to COLIN DAVIES from C&A Accountants Ltd who won the Free Night at a Heritage Hotel of his choice.

(PS: Have you been to the website yet? www.alphagroup.co.nz )

The Alpha Update

The Visa Card and the Tax Man !

For many of you, February is the month when you get to pay for the excesses of a great Christmas period, and well as final tax from the previous year. Cashflow is typically very tight because of lower income over the holiday period.

There are a range of solutions and great advice we can offer to get you through these testing times - anything from cashflow loans and business finance to budgeting advice so you have the money available for the tax man when he comes knocking! And what's more, the first hour's consultation is free!

At Alpha Group, we can help you get your finances in order and avoid the stress that this time of year can create. If you or anyone you know is having problems with cashflow, Call Us Today on 021 676 747 or 0800 676 747.

Food for Thought

Jealousy is all the fun you think they had - Erica Jong

What's New??

• 40 Year Term Loans by one lender
• True 100% finance options are still available for high income borrowers

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

Despite no change in the Official Cash Rate, ANZ and National Bank both increased their floating rate by 0.15% last week. This increase particularly affects those with revolving credit mortgages and business borrowers. Other banks have yet to follow suit, but are likely to do so. It appears higher cost of funds has caused this rise, although this appears to be because of an anticipation of an interest rate rise. Fixed rates have been reasonably stable over the past fortnight, but there are no signs of rates weakening in the foreseeable future.

The kiwi has been reasonably stable against the US dollar in the recent past, however it dropped against the Aussie because of a rise in their interest rates. Continued turmoil in the global economy means that flexibility is crucial. The US is in recession (or close to it), whilst Europe and the UK are hanging in there, but are feeling the effects of the US slowdown. Fortunately, Australia and Asia are still growing, and this momentum will help NZ in the coming months

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 18 February 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.81% (up)
5 year swap rate 8.16% (up slightly)
NZ/US Dollar 0.7860 (up from 0.7810)

Current Range of Interest Rates for home and investment mortgages as at 18 February 2008

Floating:
9.49 to 11.40% (up slightly)

Fixed For:
1 Year - 9.50% to 10.55% (stable)
2 Year - 9.25% to 10.25% (stable)
3 Year - 9.15% to 10.45% (up slightly)
4 Year - 8.99% to 9.72% (stable)
5 Year - 8.75% to 10.20% (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.