News - 22 january 2007

HAPPY NEW YEAR!

We at Alpha Financial Solutions Ltd are looking forward to a very prosperous 2007!

The Alpha Update

Are you starting the New Year with a financial hangover??

Many of us come back from the holidays having spent too much and resolving to get our finances in order. Some of us are already planning the next holiday, or are trying to figure out how we’re going to find the money for that property on the beach we’ve found.

Whatever your indulgence may be, it might be a good time to look at restructuring your mortgage or examining whether you can actually borrow more. Where can you get the money from? Can you afford it? You might be surprised – it could be easier than you think!!

Get in touch with Alpha Financial Solutions to find the answers. Give me a call and I can talk you through the financing options over the phone. We will quickly and easily be able to get an idea of what may be achievable for you.

If you, or anyone you know, is needing help with their finances this year, give Stuart a call on 021 676 747 or 0800 676 747. Start the year off in control of your money !

Food for Thought

Actions have consequences...first rule of life. And the second rule is this - you are the only one responsible for your own actions.

Interest Rate and Currency Comments

The dilemma of whether the Reserve Bank will raise interest rates again is upon us this Thursday. Once more, it is a 50/50 call, with most commentators expecting no change because of lower fuel prices and a higher kiwi dollar. However, house prices continue to climb and business confidence is also stronger, suggesting further inflationary pressures on the horizon. Regardless of the Reserve Bank, interest rates have risen across the board in the last month, by up to 1/4 of a percent on most maturities. This has been driven by higher offshore interest rates, as other central banks raise their interest rates. This may be more effiective in slowing our economy than anything Mr Bollard does!

The kiwi has oscillated around 70 cents US over the past month and, with local interest rates not likely to fall any time soon, the kiwi should remain high for some time to come. Cross rates with other currencies also indicate a gradual strengthening.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 22 January 2007 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.68% (stable)
5 year bond rate 6.25% (up)
NZ/US Dollar 0.6959 (up from 0.6902)

Current Range of Interest Rates for home and investment mortgages as at 22 January 2007.

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 9.19% (up)
2 Year - 7.85% to 9.25% (up)
3 Year - 7.85% to 8.97% (up)
4 Year - 7.85% to 8.84% (up slightly)
5 Year - 7.70% to 8.74% (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.