Mortgage Market Wrap - May 2025

With interest rates coming down, we’re seeing more clients restructure their lending to improve cash flow or repay debt faster, and some investors returning to the market.

Around half of all mortgages are due to come up for a refix in the next 6 months – so it’s a good time to get in touch so we can review your lending and make sure your structure is working for you and your goals.

Overall, lower interest rates and easing serviceability requirements are creating new opportunities for many. If you’re considering any moves in property or just wanting to make sure you’re in the best position for the months ahead – Get in touch, I’m here to help

OCR Drops to 3.5% - What Does This Mean For You?

The Reserve Bank has cut the Official Cash Rate (OCR) to 3.5% – the lowest since October 2022!

What Does This Mean For You?

Floating & Revolving Loans: Banks have already responded with lower rates – you might notice a drop in repayments.
Fixed Rates: No immediate changes here, but this drop could still influence lower fixed rates in the future.
Loan Accessibility: We’ve seen a drop in some servicing rates (the rate used by banks to assess whether you can afford a loan). This makes it easier for some borrowers to qualify for new lending.
Opportunity: Lower interest rates means more money in your pocket – especially if your loan is structured to take advantage of the change or the ability to pay your loan back quicker.

The best way to take advantage of the OCR change is with tailored and smart loan structuring. If you’re wondering whether your current lending is still working for your goals, let’s have a chat. A smart structure makes all the difference.

For a more in-depth overview of the recent OCR announcement click HERE

Property Insight:

In April, values nationally rose by 0.3%, marking the fourth consecutive month of gains. The median property value is now $819,096, the highest since June last year.

Trends and Tracking:

Hamilton was again a strong performer, with a +0.8% increase
Christchurch with a +0.5% rise
Auckland saw a +0.3% increase
Dunedin, Wellington, and Tauranga each experienced a slight lift of +0.1%
Some areas, like Palmerston North, Nelson, and Hastings saw drops of 0.5% or more

What’s Driving The Market?

Lower mortgage rates are boosting buyer confidence, but growth is still modest due to economic uncertainty, increased listings, and tighter lending rules like debt-to-income ratios (DTIs).

Looking Ahead

A steady 5% rise in national values is forecast for the next year – a pace that may suit first-home buyers and long-term investors.

For April’s Full Property Insight click HERE

The market is shifting and staying informed is key! Whether you’re navigating your mortgage options, planning your next move, or reviewing your KiwiSaver, I’m here to help – Get in touch for a zero obligations chat or review.

We are here to help you navigate the exciting world of finance and property with confidence.

Book directly on calendly, or click below to get started!