News - 20 August 2007

The Alpha Update

Why use a mortgage broker?

Buying property or refinancing – whether it’s your first home or a commercial investment – can be extremely time-consuming and a costly experience if not handled properly. Using a professional mortgage broker will help you far more than just finding the best interest rate.

By using Alpha Financial Solutions, you receive:

• a custom developed loan structure to suit your needs, both current and future
• a thorough review of appropriate finance options from banks and a wide range of other lenders
• solutions for all sorts of tricky situations - try us with your situation!
• savings of time and money, as we do all the leg work and negotiating for you
• one consistent point of contact across all lenders
• access to a wide variety of trusted service providers - from lawyers to painters, property developers to photographers
• the benefit of 20 plus years experience in finance

If you, or anyone you know, needs help with their finances, give Stuart a call on 021 676 747 or 0800 676 747. We Can Help!

Food for Thought

Even if you're on the right track, you'll get run over if you just sit there - Will Rogers

What's New??

• "The Beginners Guide to Commercial Property Investment" from Alpha Financial Solutions Ltd
• Lo doc loans to 95%

For more information about any of these opportunities, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

The international turmoil in financial markets has had a number of interesting effects. Short term wholesale interest rates have risen, long term ones have fallen as a result of the move to less risky assets. However, domestic data is showing a slowing in the economy, which may allow the Reserve Bank to hold interest rates where they are. The downside of the kiwi dollar fall is that imported goods (particularly petrol) will rise, adding to local inflation. Watch this space and stay flexible!

WOW! A 6 cent drop in the kiwi after the 6 cent drop over the previous 2 weeks. This shows how significant the international influence now is on our currency. Longer term, our stable economy and high interest rates will support the kiwi dollar. Short term, international volatility will dictate trends, which are likely to be downward. Again, stay flexible!

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 20 August 2007 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.99% (up)
5 year bond rate 6.87% (down)
NZ/US Dollar 0.6825 (down from 0.7685)

Current Range of Interest Rates for home and investment mortgages as at 20 August 2007.

Floating:
9.6 to 10.80% (stable)

Fixed For:
1 Year - 9.15% to 10.12% (stable)
2 Year - 9.15% to 9.99% (stable)
3 Year - 8.90% to 9.95% (stable)
4 Year - 8.80% to 9.85% (stable)
5 Year - 8.80% to 9.80% (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.