News - 19 February 2007

The Alpha Update

Why use a mortgage broker?

Buying property – whether it’s your first home or a commercial investment –  can be extremely time-consuming and a costly experience if not handled properly. By using a professional mortgage broker, you will end up with just the right finance package for your needs, not only now, but in the future as well.

At Alpha Financial Solutions Ltd:

• we find not only a competitive interest rate, but more importantly develop a loan structure that will best suit your needs, both current and future
• we review a wide range of finance options from banks, other financial institutions and private lenders to ensure the appropriate options have been reviewed before securing finance
• we find solutions for all sorts of tricky situations – 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 do all the negotiating for you, saving you time and money
• we provide you with one consistent point of contact – we get to know your needs so you don’t have to explain your situation to bank staff again and again when they change.

Whether you’re getting your first mortgage, buying another home, or just need some help with your current financial situation, working with a broker will save you time and money.

If you, or anyone you know, needs help with their finances this year, give Stuart a call NOW on 021 676 747 or 524 6062.

Food for Thought

The greatest danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it - Michelangelo

What's New??

Bluestone, one of the major non-bank lenders, has launched an equity release or reverse mortgage for the over 60 age group. This is in direct competition with the two other main offerings , and has some unique features, such as offering a capped or fixed interest rate for life! Equity release mortgages, used correctly, can be a fantastic way of unlocking cash for those who are asset rich but cash poor.

Call me NOW on 524 6062 to find out more about how they work!

Interest Rate and Currency Comments

Interest rates have continued to strengthen last week, albeit gradually. Most lenders have moved their rates up by .05% across the board, with almost all published rates above 8% now. The market is almost certain that the Official Cash Rate will rise in early March - the only question is whether a 0.25% rise will be enough. The medium term outlook, however, is more relaxed and there may be a downward trend in the years ahead.

The currency continues to be quite boring, with the kiwi hovering between 68 and 70 cents US and around 88 cents Australian. Until there is major movement in our interest rates, this trend is likely to remain.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 19 February 2007 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.74% (up)
5 year bond rate 6.35% (stable)
NZ/US Dollar 0.6944 (up from 0.6825)

Current Range of Interest Rates for home and investment mortgages as at 19 February 2007.

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 9.19% (stable)
2 Year - 7.85% to 9.25% (stable)
3 Year - 7.85% to 8.97% (stable)
4 Year - 7.95% to 8.84% (up slightly)
5 Year - 7.79% to 8.90% (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.