News - 23 June 2008

The Alpha Update

Finance For Businesses

Despite the supposed "doom and gloom" from the media, I have been working with two clients for business finance this week, one setting up a new business and the other looking to expand. In both cases, I have been able to assess their options, make a recommendation, and then successfully negotiate with a lender to obtain the finance that they need.

Most importantly, I have been able to develop a loan structure to ensure their cashflow can actually meet the loan payments required. My background and expertise ensures that loan structure, security offered and interest rates are all optimised for the borrower.

Who do you know that needs finance to purchase or grow a business?? Get them to call us Today on 021 676 747 or 0800 676 747. We Can Help!!

Food for Thought

"Speak in anger and you'll give the greatest speech you'll ever regret." -- Anonymous

What's New??

• Valuation requirements tighten again - required now for all loans over 90%

• Some easing of lo doc lending limits by non-bank lenders

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

Interest rates have continued to decline over the past fortnight, with the non-bank lenders being the big movers of late. Wholesale funding costs have continued to ease, albeit at a slower pace. Weakness in the local economy will allow the Official Cash Rate and short term fixed rates to fall, late this year or early next year. However, international uncertainty remains significant, and the potential exists for longer term rates to climb again.

The kiwi has found some support against our major trading partners after a rapid fall after the latest OCR announcement. The US dollar has stabilised, with talk of a possible interest rate rise being the next movement by the Federal Reserve. The Aussie remains strong as their interest rates remain high. Stability is likely in the short term.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 23 June 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.69% (stable)
5 year swap rate 7.57% (stable)
NZ/US Dollar 0.7612 (down slightly)

Current Range of Interest Rates for home and investment mortgages as at 23 June 2008

Floating:
9.80 to 11.50% (stable)

Fixed For:
1 Year - 9.30% to 10.95% (stable)
2 Year - 9.10% to 10.65% (stable)
3 Year - 9.05% to 10.85% (stable)
4 Year - 9.05% to 10.35% (stable)
5 Year - 9.00% to 10.69% (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.