What’s happening with interest rates and what it means for you.
Interest rates are shifting, and if you’re a homeowner, especially with a fixed-term mortgage, this is the perfect time to check whether you're getting the best deal. Here’s what you need to know, in plain language.
The OCR Is Dropping—Good News
The Official Cash Rate (OCR) is the tool the Reserve Bank uses to influence interest rates nationwide. When the OCR goes down, banks usually lower their mortgage rates too—and that means lower repayments for you.
In April, the Reserve Bank dropped the OCR to 3.50%, and another drop is expected on 28 May. Experts believe it could fall to around 2.5% by the end of the year.
What This Means for You as a Homeowner
Lower repayments – You may pay less on your mortgage each month.
Refinancing opportunity – This is your chance to switch to a more favourable mortgage deal.
More flexibility – Lower rates could free up cash for renovations, debt repayments, or savings.
Currently, many banks are offering 1–2 year fixed rates around 5%, and these rates could drop further.
Refixing or Refinancing—What’s the Difference?
Refixing means renewing your current mortgage at a new interest rate when your fixed term ends.
Refinancing means transferring your mortgage to another lender, typically to secure a better deal or more favourable terms.
Both options can save you money, and now is a great time to explore them.
The Budget Is Coming Too
The Government will release its 2025 Budget on 22 May. While it’s expected to be fiscally cautious, it’s designed to help keep the economy steady and interest rates low—another reason to consider your mortgage options now.
What Should You Do Next?
Check your mortgage – Is your fixed term ending soon? Are you paying more than you need to?
Book a free review with me – We’ll explore your refinancing or refixing options together.
Plan for your goals – Whether you want to renovate, consolidate debt, or free up cash, I can help you find the right solution.
I'm here to guide you through it all—from understanding your mortgage options to securing the best deal for your family’s future.