News - 6 November 2006

Problem Profile

Urgent Refinance Required !!

A client was referred to me recently who had got himself in a pickle. He had started a new business and the business was not going as well as planned. Instead of restructuring his debt when the first signs of problems emerged, he carried on trading and got himself deeper in debt with the bank. The bank finally ran out of patience and issued proceedings to sell up his property. That was where I came in...

The Solution required quick action all round - Firstly, we identified all of his debts, not only to the bank, but to other business creditors. We rolled all of his debt into one new loan, financed against a property that fortunately had plenty of equity in it. Once he had re-established a sound loan repayment history, the client was refinanced back to a mainstream lender at standard bank rates.

Benefits to the client included:

- Preservation of his credit record

- A fresh start with all his debts rolled up into one loan

- No registered valuation required

- The whole transaction was completed within a week

WHO DO YOU KNOW THAT HAS A PROBLEM LIKE THIS?? GET THEM TO CALL STUART NOW ON 021 676 747 to see HOW I CAN HELP!!

Food for Thought

Why not go out on a limb? Isn’t that where the fruit is? - Frank Scully

Interest Rate and Currency Comments

The Reserve Bank surprised most commentators last week and didn't raise the Official Cash Rate. That has seen a drop in wholesale interest rates, particularly in the shorter loan maturities. However lenders have been slow to pass these savings on to borrowers, at least publicly. What they will do is discount their published interest rates on a deal by deal basis.

The currency has again been driven higher by our comparatively high interest rates. Additionally, the US dollar has fallen because of a slowing US economy, which has put further upward pressure on the kiwi. This may well continue for some months until there are signs that our interest rates will drop.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 6 November 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.57% (down)
5 year bond rate 6.19% (down)
NZ/US Dollar 0.6742 (up from 0.6680)

Current Range of Interest Rates for home and investment mortgages as at 6 November 2006.

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 8.95% (stable)
2 Year - 7.85% to 9.25% (stable)
3 Year - 7.84% to 8.95% (up slightly)
4 Year - 7.80% to 8.49% (stable)
5 Year - 7.50% to 8.39% (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.