- TONI DAWSON, a fully qualified Mortgage Advisor, with more than 15 years’ industry experience, shares her expertise.
The big news: The Reserve Bank cut the Official Cash Rate (OCR) by 0.25 per cent to 2.25 per cent on Wednesday, November 26.
What’s happening in the economy?
The good:
- The economy hit a rough patch mid-2025 but is starting to recover.
- Lower interest rates are helping people spend more.
- The job market is stabilising.
- Auckland is showing “green shoots” – early signs of recovery.
- Property sales are up six per cent compared to last year.
- Regional New Zealand is humming.
The not-so-good:
- Inflation is at three per cent (higher than the Reserve Bank wants).
- Cost of living pressures continue – power bills, food prices still rising.
- The economy is recovering slower than hoped.
What does this mean for you?
If you have a mortgage:
Banks were already cutting rates in the months leading up to the November 26 announcement, and more recently, they’ve been offering large cashbacks.
This might be the last OCR cut for a while as the economy stabilises.
Australia’s interest rates are on hold, due to their inflation rate now hitting 3.8 per cent and their rates may well go up soon.
If you’re thinking about buying:
Property sales are climbing steadily, affordability is the best it’s been since 2019, and the Reserve Bank is making it easier to borrow with lower deposits from December.
We may well get an influx of buyers who have been holding out for “the bottom”.
If you’d like to discuss further, we’re here to help.
- Toni Dawson, NZCFS Level 5, BBS, GradDipBusStuds (Personal Financial Planning) FSP1000506, phone 027 646 9269, at 38A Wakelin Road, Beachlands 2018.
