News - 5 March 2007

The Alpha Update

Buying property – the Pre-approval Process

When buying property, whether it’s your first purchase or not, it helps to know how much you can borrow before you actually find something you want to make an offer on. Getting a lender to approve finance prior to finding a specific property to buy is known as obtaining “pre-approved finance” or “conditional finance”**.

The steps to take are quite simple, and Alpha Financial Solutions Ltd. can help along the way. In most cases, it is as easy as providing the following :

1. A completed application form (click here to email me so I can send you one)
2. Proof of income (e.g. 2 recent pay slips, your employment contract, letter from your employer)
3. Proof of a deposit (e.g. a bank statement showing savings, mortgage statements indicating surplus equity, a term deposit statement)
4. Two forms of identification (drivers licence and passport)

Alpha Financial Solutions Ltd. will help put together all the necessary paperwork and will research the best lenders to approach on your behalf.

Whether you’ve found the property of your dreams or are still fantasizing about your ideal home on the beach, Alpha Financial Solutions Ltd. can help with the pre-approval process

Give Stuart a call on 021 676 747 or 0800 676 747 and turn those dreams into reality!!

** To find out the difference between conditional and unconditional finance, or to read other frequently asked questions, click here

Food for Thought

I cannot give you the formula for success, but I can give you the formula for failure: which is: Try to please everybody.

What's New??

FLOATING RATE FINANCE AT 8.50%!!

Despite all the talk of a rise in the OCR, one lender has come out with a special for the month of March only. Call NOW to find out more!

Interest Rate and Currency Comments

More interest rate rises last week in anticipation of the Reserve Bank increasing the Official Cash Rate this Thursday. Longer term interest rates in the US have dropped as the US economy stabilises, however there is still extreme pressure on margins for NZ based lenders. The commentators are still suggesting that you lock in for 2 or 3 years to ride out the current volatility.

Whilst there has been some wild swings in the kiwi over the past week or so, it has returned to just over 70cents US again. Until our interest rates fall, the kiwi will remain high, around current levels.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 5 March 2007 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.81% (up)
5 year bond rate 6.45% (up)
NZ/US Dollar 0.7010 (up from 0.6944)

Current Range of Interest Rates for home and investment mortgages as at 5 March 2007.

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 9.35% (up)
2 Year - 7.85% to 9.16% (up)
3 Year - 7.85% to 9.14% (up)
4 Year - 7.95% to 8.84% (up slightly)
5 Year - 7.79% to 8.94% (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.