News - 25 June 2007

The Alpha Update

Your One-Stop Shop!

At Alpha Financial Solutions Ltd, we aim to provide you with the full picture when it comes to your financial and investment options. A great finance package is about more than just finding the lowest rate. It’s about compiling the best team of business advisors to help you through the process.

We have long-standing relationships with a variety of trusted service providers in each of the following fields:

• Accountancy and Tax Consultancy Services
• Insurance and Risk Services
• Business Coaching and Process Efficiency Services
• Legal and Conveyancing Services
• Advertising and Marketing Services
• Property Finders
• Valuers and Building Inspection Companies
• And many more....

Our aim is to provide you with effective financial and business solutions to meet your current and future needs. We like to save you time by having all the information you need just a phone call away.

If you or anyone you know needs help with their finances, or you need a contact with one of the areas mentioned above, call Stuart Duncan at Alpha Financial Solutions on 021 676 747 or 0800 676 747 now. We can help!

Food for Thought

Blessed are the flexible, for they shall not be bent out of shape!

What's New??

The impact of interest rate rises over the last year...

For a couple earning $100,000 pa with 2 kids and a $5,000 credit card, their borrowing capacity for investment property has reduced by approx $100,000 since the beginning of 2006!!

Interest Rate and Currency Comments

After a rapid response to the Reserve Bank increasing the cash rate two weeks ago, things have quietened over the past week. Longer term rates have edged up slightly, with almost all rates from major banks now above 9%. the market is playing wait and see, with further rises still on the cards.

Despite serious intervention by the Reserve Bank over the past two weeks, the kiwi has continued it's march upwards, against not only the US dollar, but most of our other trading partners. Why? High Interest Rates - simple as that. Until they start coming down again, the currency will stay high.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 25 June 2007 the following Interest Rates applied:
Official cash rate 8.0% (stable)
90 day bill rate 8.35% (stable)
5 year bond rate 7.17% (down slightly)
NZ/US Dollar 0.7640 (up from 0.7541)

Current Range of Interest Rates for home and investment mortgages as at 25 June 2007.

Floating:
9.0 to 10.30% (stable)

Fixed For:
1 Year - 8.90% to 9.93% (up slightly)
2 Year - 8.75% to 9.81% (up slightly)
3 Year - 8.70% to 9.90% (up slightly)
4 Year - 8.60% to 9.86% (up slightly)
5 Year - 8.75% to 9.80% (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.