OCR drops to 3% – Watch Digby’s insights

Watch as Digby Butcher, Head of Mortgages, explains what this means for you and your home loan.

What this means for borrowers

Following the Reserve Bank’s recent update, we’re expecting short-term swap rates to trend downwards over the coming week, if not sooner. This could create room for further reductions in 6 and 12 month fixed-term mortgage rates.

Some banks had already adjusted rates ahead of the announcement, so while we may still see movement, much of it has already been priced into current offers. Right now, the best advertised one-year rate is 4.79%, with the two-year rate at 4.89%.

If you’re one of the many borrowers with a loan refixing in the next 6-12 months, you might be weighing up the benefits of shorter terms to keep your options open, but it’s a delicate balance.

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

When it comes to structuring your mortgage, everyone’s situation is different. That’s why it’s important to get advice tailored to you, and that’s where we can help. Contact us at mortgages@enva.co.nz or call 0508 287 672.

And just by booking a 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, 8 October 2025.