Re: RBNZ interest rate decision – “Based on public commentary it does appear that the RBNZ will leave the OCR at 3.25 per cent, however we believe that a rate drop of .25 per cent now, and a similar decrease in August will benefit consumers. Ideally we’d like to see a cash rate of 3 per cent sooner rather than later.
An interest rate reduction will bring immediate cost of living relief to Kiwis during these globally uncertain times of tariffs, global inflation and trade tensions, added to rising food costs and reports of increases in future inflation data and unemployment figures.
Finance and mortgage advisers are reporting that affordability still remains a significant challenge for homebuyers, particularly those trying to enter the market for the first time, while investors are not widely back in the market as yet. So every small rate drop helps.
Currently the mortgage market is in a transitional phase, with rates easing and house values rebounding slowly. Advisers are receiving many questions around the loan structure, particularly fixed v variable or a split home loan.
Our advice to consumers looking to purchase or refinance – irrespective of today’s OCR decision – is to consult a mortgage adviser first to discuss your individual circumstances. While the rate is very important, it is not the only factor to consider. You must look at what is best for your individual circumstances, and this is what your mortgage adviser can do. Banks are unable to do this as they are in the business of selling their products.
Mortgage advisers also have access to specialist and non-bank lenders who can provide flexibility to those who need it, particularly those with unique borrowing circumstances or who are self-employed.”
