OCR Update 2024

In an anticipated move, the Reserve Bank has cut the OCR by 50 basis points from 5.25 % to 4.75%.

“Several banks have already lowered mortgage rates, with others expected to follow, making borrowing more affordable. We can expect to see values start to increase as a result which is great news for investors and anyone who is looking to buy,” says Liam Cox, Staircase National Sales Manager.

There was always a good indication that today’s announcement would see a reduction to the OCR, often we see some banks reduce interest rates before an OCR announcement is made and ANZ did just that. Offering a special 1-year fixed rate of 5.59% for a limited time. Due to the limited nature of the special, the rate was not being advertised or promoted externally. The rate is aimed at promoting customer loyalty and retaining customers in a competitive environment, a spokesperson said.

We expect more banks to follow suit quite quickly with this recent OCR update.

Kiwibank Chief Economist, Jarrod Kerr, agreed that the market has switched gear.

While he and other economists had been telling people for a while that relief was coming, it was like people needed to see the first OCR cut to believe it.

Time to Refinance? Here is What You Should Know!

With further OCR reductions on the horizon, now may be the perfect opportunity to explore refinancing your home loan(s). This move could save you thousands over the life of your mortgage, but it’s important to approach this decision thoughtfully. Here are some key factors to consider:

Interest Rates: Locking in a lower fixed rate can offer stability and predictability, especially if you plan to stay in your current home. On the other hand, a variable rate might provide more flexibility if your plans are uncertain.

Loan Terms: Shortening your loan term can help you pay off your mortgage faster and reduce overall interest costs. Conversely, extending your term may lower your monthly payments but could increase the total interest paid in the long run.

Refinancing Costs: Before making a move, assess all potential costs of refinancing, including any early repayment or break fees, and compare these with your anticipated savings.

Get Expert Advice: If you are considering refinancing, our finance experts are here to help. Reach out to us to discuss your options!