Mortgages

OCR drops to 2.5%: Watch what it means for your mortgage

2 MIN READ 08/10/2025
The Reserve Bank has just delivered a 50 basis point cut to the Official Cash Rate (OCR), taking it down to 2.5%. What does that mean for your mortgage, and what should you be thinking about next?

Watch our latest update as Nigel Perkins, breaks it down in this quick video – including what the change could mean for interest rates, how markets are reacting and what borrowers should be thinking about next.

 

What the OCR cut means for borrowers
Interest rate markets have already been softening, and banks have begun lowering fixed rates – especially across short and mid-term lending options.

“We’re seeing a real shift in the cost of borrowing, and this cut reinforces that momentum. It’s a great time for borrowers to review their structure and make sure they’re getting the best out of this environment.” 
  • More softening is likely in the lead-up to the next OCR review in November
  • Households may benefit from locking in lower rates or creating more flexibility
  • Every lending strategy should reflect your specific needs and goals

Thinking about your next move?

Our mortgage advice team is here to help you understand how today’s announcement could impact your home loan – and to help you make informed decisions about your next steps.

Whether it’s fixing, refixing or reviewing your overall lending structure, we’ll tailor advice to your household’s unique situation. Click below to request a call, email us at mortgages@haven.co.nz, or call 0800 700 699 to book a review.

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.


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