News - 7 February 2006

Happy Waitangi Day for Yesterday

A Quick Reminder: WE HAVE MOVED OFFICES. We are now located at Level 2, 1 Teed St, Newmarket.

PHONE NUMBERS ARE: STUART 524 6062, DEBRA 524 6463, FAX 520 3296

Interest Rate and Currency Comments

As predicted, the Reserve Bank left interest rates unchanged and indicated that they had finished this round of increases. However, they also suggested that any falls would be some months away. Despite this, the market has seen a number of falls in fixed rates in all maturities from 2 years to 5 years. Given this trend, fixing now for shorter maturities is probably a good thing. However, this situation may reverse later in the year, as longer term interest rates start to climb again.

Call me NOW to find out who has decreased their interest rates the most!!!

Yoyo is the best way to describe the movements in the kiwi dollar over the last 2 weeks! The two elements in play are a weakening economy driving the currency down, yet continued high short term interest rates keeping the currency up. Eventually, the former is expected to win, but more Yoyo in the meantime!

(See below for latest interest and exchange rates).

Food for Thought

He who rows the boat is too busy to rock it.

Problem Profile

Defaults and Bankruptcy don't have to be show stoppers!

I have had two clients come to me since the New Year who have had previous credit issues. Both had previously been bankrupt, although one was some years ago. In both cases, there are lenders available who will provide finance for their own home, at a price much cheaper than finance companies. The idea with all these type of clients is to get them finance for 2-3 years, get them re-established with a good credit record again, and then refinance the loans with a mainstream bank.

Who do you know that might have a blemish in their credit record and need a second chance?? Get them to give Stuart a call now on 524 6062 to discuss their situation!!!

The Finance Markets

As of 8am on Tuesday 7 February 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.60% (up slightly)
5 year bond rate 5.74% (down from 5.83%)
NZ/US Dollar 0.6782 (down from 0.6904)

Current Range of Interest Rates for home and investment mortgages as at 13 February 2006.

Floating:
8.50 to 9.75% (stable)

Fixed For:
1 Year - 7.60% to 9.10% (stable)
2 Year - 7.75% to 9.25% (stable)
3 Year - 7.70% to 9.15% (stable)
4 Year - 7.95% to 8.15% (up slightly)
5 Year - 7.80% to 8.55% (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.