RBNZ interest rate decision – “If as expected, the Reserve Bank of New Zealand (RBNZ) reduces the official cash rate, we call on all banks to quickly pass on the full reduction to both new and existing borrowers.
“Our message to borrowers who do not see a reduction in their repayments is to contact your lender and ask why. If you don’t get satisfaction see your mortgage adviser as the market is becoming more competitive and advisers can assist you to refinance if necessary.
“The general feeling across New Zealand is that there will be further rate cuts during 2025, and we are already seeing competition heating up between the banks.
“Some lenders are already factoring this into their rates, with a few headline rates coming out from Westpac at 4.99 per cent for a three year fixed rate, and TSB moving yesterday on a two year fixed rate at 5.29 per cent.
“A rate cut will bring more good news for borrowers who are sitting on variable rates and looking for a good rate to lock in for 2025 and beyond.
“It will also increase the ability of consumers to borrow and purchase a home, while bringing some relief for those doing it tough after long periods of higher rates.
“The changing rates will present consumers with many options including whether to fix rates or not, and advisers are already receiving many of these types of enquiries. The type and structure of your loan will depend on your individual circumstances and we encourage borrowers to see a mortgage adviser so that this can be discussed. When rates are going down it is important not to make these decisions without advice.
“The New Zealand mortgage market is becoming more competitive, and mortgage advisers have played a large part in this. More people are choosing to use an adviser because we assist them to find the product that is in their best interests and best suits their specific individual needs.”
