Mortgages

The OCR has dropped to 3.25%

1 MIN READ May 28, 2025
The Reserve Bank has just reduced the Official Cash Rate to 3.25%, a drop of 25 basis points. Treasury is now forecasting a potential low of below 3%, which could bring even more relief to borrowers.

 

Watch as Nigel Perkins, Head of Mortgages at Haven, shares what this means for you.

What this means for borrowers

  • Floating rate mortgages should see reductions almost immediately
  • Fixed rates may follow, with the one-year rate likely to soften below 4.8% in the next week or two
  • The Reserve Bank is signalling a terminal OCR below 3%, leaving room for more interest rate cuts

Thinking about your next move?

Whether your fixed rate is coming up for renewal or you just want to make sure your mortgage is working for you, we’re here to help. We can chat about how to:

  • Pay down debt faster
  • Optimise your mortgage structure
  • Make the most of your current cash flow and household situation

Email us at mortgages@haven.co.nz, or call 0800 700 699 to book a review.

The Reserve Bank’s next OCR announcement is on Wednesday, 9 July 2025.


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