News - 2 April 2007

HAPPY EASTER

I will be away on holiday from Saturday 7th April to Sunday 15th April. In my absence, please contact Andrew Macready on 5291250

The Alpha Update

When shopping around for a mortgage or financing, it is vital to find the right finance product and loan structure for you and your particular circumstances as well as a good interest rate. In the long term, the correct loan structure will save you more than the last 0.25% difference in interest rates!

It has been a busy first quarter for us at Alpha Financial Solutions Ltd.  as we’ve been working hard to find the deals that suit our customers best. Here is bit of an update on what we’ve been up to so far this year....

• Several 100% home loans for clients with good incomes but no deposit
• Finance for both property traders and property investors - the former needing low fees for early loan repayment, the latter needing low interest rates but not expecting to repay a loan early
• Finance for a commercial property investment out of Auckland
• Working capital finance for a business with strong growth and profits, but with little in the way of security to offer.
• First home buyers, loan restructures, interest rate refixes, and even a couple of situations where I told the client not to borrow money!!!

If you, or anyone you know, is needing help finding the right loan structure, then give Stuart a call on 021 676 747 or 0800 676 747 NOW!!!

Food for Thought

It's only when the tide goes out that you learn who has been swimming naked! - Warren Buffett

What's New??

Stand-alone Commercial Property Finance to 80% Loan to Value! Put less of your own money into a commercial property purchase and leverage other people's money! Call me now to find out more.

Interest Rate and Currency Comments

All Banks have followed the ANZ path in raising interest rates across the board. Two year fixed rates have risen by around 0.4% in the last month, and 5 year fixed rates by around 0.55% in the same timeframe! None of the major lenders are even negotiating below 8% now, with most offering between 8.5% and 9.0% for fixed rates. All fixed rates are now above their 5 year averages, with 5 year rates now looking expensive for the risk involved.

Yet again, offshore investors have created a rollercoaster ride for the kiwi dollar. Fundamentally, our high interest rates (which are expected to go higher) combined with our stable business environment make the kiwi an attractive bet. The problem is that our market is very small by international standards, so large buy or sell transactions can shift the currency markedly.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 2 April 2007 the following Interest Rates applied:
Official cash rate 7.50% (stable)
90 day bill rate 7.93% (up)
5 year bond rate 6.60% (up)
NZ/US Dollar 0.7136 (up from 0.6947)

Current Range of Interest Rates for home and investment mortgages as at 2 April 2007.

Floating:
8.70 to 9.95% (stable)

Fixed For:
1 Year - 8.0% to 9.45% (up)
2 Year - 8.09% to 9.50% (up slightly)
3 Year - 8.05% to 9.41% (up)
4 Year - 7.95% to 9.26% (up)
5 Year - 7.90% to 9.17% (up)

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.