News - 20 October 2008

The Alpha Update

Piece of Mind...

In the current environment of economic and credit turmoil, many people are worried or at least uncertain about what the bank might be thinking about them. But equally, they are afraid of going to the bank and talking about things, for fear of alerting the bank to their problems! What to do??

The answer is simple - come and discuss the situation with a knowledgeable and independent professional from Alpha Financial Solutions Ltd. All information is confidential and will not be passed on to a lender. A range of options from a range of lenders can be explored. And you will leave with knowledge about how banks think and what you can do to help yourself before a problem arises!

If you or anyone you know wants Piece of Mind regarding their finances, Get them to Call Us Today on 021 676 747 or 0800 676 747 for a CONFIDENTIAL consultation and review of their situation. Call now before a small problem becomes a nightmare!

Food for Thought

"If you can find a path with no obstacles, it probably doesn't lead anywhere." - Frank A. Clark

What's New??

• Debt servicing requirements becoming easier
• Lo doc loans still available
• A new non-bank lender emerges

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

An incredibly tumultuous fortnight which has seen hundreds of billions of dollars, euros, and pounds thrown at banks around the globe. Locally, the Government was forced to provide a Government Guarantee to all deposits invested with banks, finance companies and other approved institutions. The details are still being worked through, but it is a substantial step away from our free market economy. International credit markets are still very tight, but loosening slowly. Locally, short term fixed rates have fallen dramatically, as most economists expect a cut in the Official Cash Rate of 1% this Thursday. The downward trend will continue for some time yet and is very dependent on international stability returning.

The kiwi has swung wildly in the recent past (across a range of 5 cents US!) as international sentiment has been firstly positive then negative for the kiwi. At this stage, it seems to have found a level around 60 cents US, and has firmed against the Aussie to around 90 cents. Further wild swings can be expected until the global markets settle down again.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 20 October 2008 the following Interest Rates applied:
Official cash rate 7.50% (stable)
90 day bill rate 7.20% (down substantially)
5 year swap rate 6.58% (down)
NZ/US Dollar 0.6100 (down)

Current Range of Interest Rates for home and investment mortgages as at 20 October 2008

Floating:
9.70 to 10.95% (stable)

Fixed For:
1 Year - 8.40% to 10.85% (down)
2 Year - 7.98% to 10.65% (down slightly)
3 Year - 8.39% to 10.55% (stable)
4 Year - 8.60% to 10.35% (down slightly)
5 Year - 8.60% to 10.35% (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.