OCR drops to 2.5% – Watch Digby’s insights

“With interest rates edging lower and signs of life returning to the property market, now is the time for homeowners to review their mortgage strategy.”

Watch Digby’s latest market update to understand what this change means for your home loan and the broader economic outlook.

What this means for borrowers

The June quarter showed the economy contracting by 0.9%, prompting the Reserve Bank to act decisively. Some banks had already priced in this move, but there’s potential for further downward pressure on 6 and 12 month fixed rates in the short term.

If you’re one of many borrowers with a refix coming up in the next 6 to 12 months, reviewing your mortgage structure now could be beneficial. Blending shorter and longer-term rates can provide both flexibility and certainty in a shifting rate environment.

What’s on the horizon

After five consecutive months of declining values, property prices rose by 0.1% in September. It’s a small but encouraging sign that the market may be stabilising. With interest rates trending lower and momentum building, we could see more activity as we move into 2026.

Our view? Splitting your mortgage across both short and longer term rates can offer a helpful mix of flexibility and certainty.

We’re here for your next steps

While there’s potential for another OCR cut before the end of the year, we’re likely nearing the bottom of the current interest rate cycle. If you’re thinking about refixing or structuring a new home loan, our team is here to help you navigate your options with advice that fits your goals.

Contact us at mortgages@enva.co.nz or call 0508 287 672.

Plus, when you book a mortgage review, you’ll go in the draw to win a $5,000 travel voucher! Find out more here.

The Reserve Bank’s next OCR announcement is on Wednesday, 26 November 2025.