Nathan Graham 26 November 2025
OCR Drop, Affordability Up
Its that time again, the moment we have all been waiting for and it looks like this time the OCR will drop again by 0.25% Great news! Although we might be used to it by now it’s important to go over a refresher on what this means for new mortgages and existing mortgages.
For Pre-Existing Mortgages
Those who are on Floating Rate Mortgages will see a drop relatively fast as the mortgage rates have historically followed the OCR, but for those of us on Fixed Rate mortgages we may not see a big change unless its time to refix.
It’s a good opportunity now to check when your mortgage is due for refixing, and if its soon start to think about how you are going to fix. If you need assistance with this Investr has plenty of partners that would be happy to assist. It very well may be a good idea to explore the option of fixing longer term as we are now technically below neutral.
For New Purchases
The Market is likely to become more and more contested as even if prices don’t drop, affordability will increase, meaning more for lending for the same mortgage payment. If you are someone who has been looking in the market for the right time to buy this might be it. Being below the neutral 3% means there isn’t much more to fall unless the RBNZ lacks confidence in the NZ economy.
Buying now would mean more lending, better serviceability but potentially more work finding a property as everyone is likely to be on the hunt.
There are plenty of great investment opportunities now across both long term rental and BnB/Short Term rental, and if this is something you might be interested in, you know where to find us.