Mortgages

OCR drops again taking it to 2.25%

2 MIN READ 26/11/2025
The Reserve Bank has just announced a 25 basis point cut to the Official Cash Rate (OCR), taking it to 2.25% – a sign of ongoing support for the economy. What does that mean for your mortgage, and what should you be thinking about next?

Watch our latest video update as Nigel Perkins unpacks what this could mean for borrowers, the property market and your next move!

What does this OCR cut mean for borrowers?
Banks have kicked off what some are calling a mortgage war, increasing their cash contributions – a great result for anyone considering refinancing or taking out new lending.

“Right now we’re seeing cash contributions being the catalyst for the mortgage wars…This OCR decrease should see some further improvement in interest rates and see some softening across the board.”
  • Cash contributions are up from 0.9% to now 1.5% – a 60% increase!
  • The OCR cut is expected to result in softer interest rates
  • Borrowers should take this opportunity to review their lending structures and capitalise on favourable conditions

Your next move

With rates falling and market dynamics shifting, it’s an ideal time to think about how your home loan is structured. Many clients are now exploring:

  • Splitting lending across terms to hedge against future rate changes
  • Fixing for longer than the typical 1-year term, especially with inflation possibly returning 12–15 months out
  • Building in flexibility to adapt to further OCR movement

Our mortgage team can walk you through what this change means for you – whether you’re looking to lock in a sharper rate, build flexibility, or simply understand your options. 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, 18 February 2026.


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