News - 6 March 2006

Interest Rate and Currency Comments

The Reserve Bank is due to make its next interest rate review this week. No changes are expected, but commentators are looking for signs of when the Governor will start lowering the cash rate again (implying reductions in floating interest rates). The futures market is expecting falls of 0.5% by year end, however this may be premature. Longer term rates are rising in the US, which may impact on our 3-5 year rates in the weeks to come. Look seriously at current rates if you have a loan coming off a fixed rate this year!

Call me NOW to review your current interest rate situation!!!

The kiwi's path this week will largely be determined by the Reserve Bank announcement on Thursday. The underlying trend, however, is for rising interest rates in the rest of the world, making the kiwi less attractive than it has been in past months.

(See below for latest interest and exchange rates).

Food for Thought

People call it luck when you've acted more sensibly than they have

Problem Profile

Commercial Property Finance

In past months, some of my clients have moved to spread their investment portfolio across both residential and commercial property. Commercial property diversifies their risk into a different sector, and generally makes management easier as leases are for a fixed term. It may also be an attractive proposition for those in their own business who want to buy their own premises. However, financing can be more difficult, because a greater level of deposit is required, and lenders have different servicing requirements.

With a background of more than 10 years in commercial property finance, I have the skills and knowledge to help you to obtain competitive funding for your commercial property purchase. There are again a wide range of lenders available, but many of them specialise in commercial lending only.

Who do you know that needs advice and help in obtaining finance for their commercial property purchase?? Get them to give Stuart a call now on 524 6062 to see how I can help!!!

The Finance Markets

As of 8am on Monday 6 March 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.52% (stable)
5 year bond rate 5.83% (down from 5.84%)
NZ/US Dollar 0.6485 (down from 0.6666)

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

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.60% to 9.05% (stable)
2 Year - 7.75% to 9.25% (stable)
3 Year - 7.50% to 9.15% (stable)
4 Year - 7.80% to 8.11% (down slightly)
5 Year - 7.45% to 8.40% (down 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.