Mortgage Rates Are on the Move Again, Here's What It Means for You
For the last year or so, rates did what everyone wanted, they came down. That run is over. The Reserve Bank has started lifting the OCR again, and mortgage rates are following.
Where things are at
After a long run of cuts through 2024 and into late 2025, the Reserve Bank held things steady for a few months. That pause is finished. The OCR's gone up already this year, and the Reserve Bank has been pretty upfront that more increases are likely before Christmas. Banks have already started nudging fixed rates higher in response.
Why this isn't a reason to panic
A rising market feels worse than a falling one, but it's actually easier to plan around than people think. We know the general direction now. The uncertainty isn't "will rates fall or rise", it's "how many more moves, and how fast." That's a much easier thing to plan a mortgage around than the guessing game of the last couple of years.
What this means if you're fixing or refixing soon
If your fixed term is coming up in the next few months, this is worth acting on rather than waiting on. Every review that goes by with rates ticking up is a review where waiting cost you something. Locking in sooner rather than later, even for a shorter term, can make sense right now.
If you're buying for the first time, don't let the headlines put you off. Rates moving up doesn't mean the door's closed, it just means getting your numbers and structure right matters more than ever.
If you're self-employed or in a trickier lending position
Rising rates mean banks stress test a bit harder when they work out what you can borrow. Getting good advice early, before you're up against a deadline, gives us more room to find the right lender and structure for your situation.
What I'd do
Don't wait around hoping this turns back around, the signals are pretty clear it won't for a while. Get ahead of it instead. That's exactly what we'll dig into in the next two posts, starting with how to choose your fixed term and structure in a market like this.
If you want to talk through where your mortgage sits right now, flick me a message. No pressure, just a chat about your options.
Book a call with Adam here to learn more:
https://www.mymortgage.co.nz/call-with-adam/
