News - 3 March 2008

The Alpha Update

How Can Alpha Group Help With Rising Interest Rates?

Interest rates have risen substantially over the past 6 months and most borrowers are feeling the effects, or will do shortly.

Are you wondering how you will cope with higher rates? Is it causing stress and sleepless nights? We have some FREE HELPFUL IDEAS to assist in managing your money on the most effective way possible, including:

• budgeting assistance
• how to deal with your bank if you are in financial difficulty
• interest rate strategies
• debt consolidation plans
• buying time so you can sell assets before the bank does
• and many more ways that we can help

This assistance is available to both residential and business clients. If you or anyone you know is having problems with rising interest rates or has a cashflow crisis, Call Us Today on 021 676 747 or 0800 676 747. We Can Help!!

Food for Thought

Don’t raise your voice - improve your argument - Bishop Desmond Tutu

What's New??

• A free IRD brochure on when tax is payable on property sales (email me for a copy)
• Higher limits for lo doc loans

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

Both fixed and floating interest rates have leapt up in the past fortnight because the cost of funding our borrowings from offshore has jumped markedly. Rises of between 0.2% and 0.4% have occurred across the board in fixed rates, with floating rates up by 0.2% without any change in the Official Cash Rate from the Reserve Bank. All of this has been created by the international turmoil in global finance markets. Lenders want a higher risk premium for all loans to NZ, regardless of the quality of the borrower. Ergo, you and I pay more for our money. This trend will continue for some time we believe.

The kiwi has leapt against the US dollar, as the dollar continues it's downward slide against the rest of the world. However, the kiwi has also strengthened against the euro and pound, due to continued high local interest rates. This trend will remain whilst our interest rates are high and showing no signs of falling any time soon.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 3 March 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.81% (stable)
5 year swap rate 8.18% (up slightly)
NZ/US Dollar 0.8160 (up from 0.7860)

Current Range of Interest Rates for home and investment mortgages as at 3 March 2008

Floating:
9.80 to 11.40% (up)

Fixed For:
1 Year - 9.56% to 10.55% (up)
2 Year - 9.25% to 10.25% (up)
3 Year - 9.15% to 10.45% (up)
4 Year - 8.99% to 9.96% (up)
5 Year - 8.75% to 10.20% (up)

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.