News - 18 April 2006

HAPPY EASTER. I HOPE YOU HAD A SAFE AND RESTFUL BREAK!

Interest Rate and Currency Comments

Interest rate falls have slowed and rates stabilised over the past week. There is continued speculation about when the Reserve Bank will start dropping the Official Cash Rate, with most picking late September at the earliest. The differences in rates between 2-5 year fixed terms are narrowing, with plenty of negotiation for the right transaction.

Are you getting the very best interest rate?? How do you know unless you contact an unbiased expert with access to almost all banks and a wide range of non-bank lenders??? CALL ME NOW!!

The dollar has regained some ground this week, after falling so quickly in the last month. US interest rate rises may be close to ending and local business confidence is rising again. However, until our current account deficit reduces, the long term trend will continue to be downward.

(See below for latest interest and exchange rates).

Food for Thought

He who gets close to a good tree, will have a good shade

Problem Profile

Development Finance

I have recently had 2 clients who are embarking on building projects where development finance will be required. This is an area that requires specialist expertise, with every project being treated on its own merits. Interest rates, fees, and loan structures vary significantly across lenders, and in some cases, a trading bank is not necessarily the most appropriate source of finance. Factors such as the ease of obtaining progress payments, requirements for pre-sales or take-outs, capitalisation of interest costs, etc, etc all influence the choice of lender.

Who do you know that needs development finance for a spec building project, or for any construction?? Get them to give Stuart a call now on 524 6062 to discuss their options!!!

The Finance Markets

As of 8am on Tuesday 18 April 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.46% (stable)
5 year bond rate 5.84% (up slightly)
NZ/US Dollar 0.6230 (up from 0.6137)

Current Range of Interest Rates for home and investment mortgages as at 18 April 2006.

Floating:
8.60 to 9.95% (stable)

Fixed For:
1 Year - 7.60% to 8.85% (stable)
2 Year - 7.50% to 9.25% (stable)
3 Year - 7.30% to 9.15% (down slightly)
4 Year - 7.50% to 8.05% (stable)
5 Year - 7.35% to 8.20% (down 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.