News - 21 August 2006

Problem Profile

Lo-Doc Loans - What are they?

A Lo-Doc or No Financials loan can help a wide range of people who cant or don't want to prove their income to the standards required by the trading banks. Essentially, the lender is relying on the value of the security to make their lending decision, with the client self-declaring their income. These loans are very useful in a wide range of situations, such as:

• Self employed people with accounts that minimise their profit to save tax
• Property investors who are aggressively growing their portfolio
• Commission sales people and salary earners that have a large bonus component in their package
• Retired people with investments that can be sold to repay debt
• AND many more situations in between

Lo-doc loans are offered by most of the major banks, as well as numerous non-bank lenders. Interest rates and fees are now much more consistent with mainstream lending and, in certain cases, lenders will even lend as much as 90% of the value of the property. There are differences amongst the offerings, so you need an expert to show you which lender is right for your situation.

WHO DO YOU KNOW THAT IS HAVING PROBLEMS EVIDENCING THEIR INCOME TO THE SATISFACTION OF THE BANK?? GET THEM TO CALL STUART NOW ON 021 676 747 for a solution to this problem!

SPECIAL OFFER!!!

Via separate email, I will be sending you all an invitation to a seminar being run by the Auckland Property Investors Association on:

Advanced Secrets of Successful Property Investment

Call me if you don't get the email.

Food for Thought

The self confident person can afford to project a modest image

Interest Rate and Currency Comments

After a flurry of downward movements 2 weeks ago, there were some slight rises late last week. Longer term rates remain lower than short rates, and the continuing strength of the NZ economy will keep short term rates up for some time yet. With interest rates moving both up and down, it is important to call me before BEFORE you refix your next mortgage!

With some calm returning to the Middle East, and oil prices falling, the markets looked to underlying economic strength when pricing currencies. The US economy is slowing gradually, whilst NZ remains very strong, thus the kiwi has actually risen over the last 2 weeks. This may continue in the short term, but will reverse in the medium term.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 21 August 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.51% (up slightly)
5 year bond rate 6.25% (up)
NZ/US Dollar 0.6395 (up from 0.6186)

Current Range of Interest Rates for home and investment mortgages as at 21 August 2006.

Floating:
8.60 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 8.90% (down slightly)
2 Year - 7.75% to 8.85% (stable)
3 Year - 7.65% to 8.95% (stable)
4 Year - 7.79% to 8.37% (down slightly)
5 Year - 7.65% to 8.37% (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.