News - 23 January 2006

Happy New Year from the team at Alpha Financial Solutions Ltd

WE HAVE MOVED OFFICES. We are now located at Level 2, 1 Teed St, Newmarket.

PHONE NUMBERS ARE: STUART 524 6062, DEBRA 524 6463, FAX 520 3296

Interest Rate and Currency Comments

The Reserve Bank is due to make their first announcement on interest rates this week. Commentators are picking they will leave interest rates unchanged, although it will be some time before rates start to fall again. The banks have pre-empted the Reserve Bank and started lowering their fixed rates, particularly in the 2 and 3 year space. These rates are now around 8%, with some ability to negotiate lower.

Over time, the market expectation is for rates to start to fall. Thus it is probably better to fix for shorter rather than longer terms.

Call me NOW to find out what sort of rates may be applicable for you!!!

The kiwi has taken a hammering since the last newsletter, with falls of up to 1 cent against the US dollar on a day. This has been widely predicted by commentators and, whilst there will be fluctuations, the trend will continue downwards as our interest rates start to drop and investment here becomes less attractive.

(See below for latest interest and exchange rates).

Food for Thought

Success is getting up one more time than you fall

Problem Profile

Loan Structure is Vital

People ask what value a mortgage broker provides. One of the most valuable parts of the service that I provide to my clients, and one that is least understood, is correct structuring of loans. Everyone's situation is unique, and thus a unique structure is required for every borrower and every loan. Correct structure includes aspects such as interest rate maturities, loan repayment terms, and principal repayment terms. It can also encompass borrowing entities and consider aspects such as asset protection and tax effectiveness of debt.

Loan Structuring is an area that few staff at banks know about or understand. The correct loan structure can potentially save you hundreds and even thousands of dollars over the life of a loan.

Who do you know that needs their loan structure reviewed? Give Stuart a call now on 524 6062 to book an appointment for a review!!!

The Finance Markets

As of 8am on Monday 30 January 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.61% (up slightly)
5 year bond rate 5.80% (down from 5.84%)
NZ/US Dollar 0.6839 (up from 0.6813)

Current Range of Interest Rates for home and investment mortgages as at 23 January 2006.

Floating:
8.50 to 9.75% (up slightly)

Fixed For:
1 Year - 7.60% to 9.10% (up slightly)
2 Year - 7.75% to 9.25% (stable)
3 Year - 7.75% to 9.15% (stable)
4 Year - 7.95% to 8.25% (down slightly)
5 Year - 7.80% to 8.65% (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.