April OCR cut: what homeowners and buyers should know

On 9 April 2025, the Reserve Bank of New Zealand (RBNZ) delivered its fifth consecutive rate cut, lowering the Official Cash Rate (OCR) to 3.50%. The move reflects continued efforts to stimulate economic activity, and it’s already flowing through to mortgage rates – with both floating and short-term fixed rates moving downward.

FIXED RATES EASE, BUT COMPETITION REMAINS FLAT

Following the OCR cut, most major lenders dropped their 1- and 2-year fixed mortgage rates to 4.99%. While this follows market expectations, we’ve yet to see any lender break from the pack with a standout rate to truly kickstart aggressive competition.

“This is a good time to reassess your mortgage structure,” says Julius Capilitan, mortgage broker and director at Century 21 Financial. “But the market hasn’t become hyper-competitive – it’s largely tracking the OCR without surprise.”

WHAT’S THE SMART MOVE IN APRIL?

With more OCR cuts expected later in the year – and a projected drop to 3.00% by year-end – borrowers are weighing their options carefully:

• 1–2 Year Fix: Sitting at 4.99%, short-term fixed rates offer a good balance of stability and flexibility to re-fix again if rates fall further.

• Split Loan Strategy: A popular option that spreads risk and creates a smoother path through future rate changes.

• Floating: Best suited to those who want maximum flexibility or plan to make extra repayments.

“There’s no cookie-cutter strategy,” says Julius. “At Century 21 Financial, we look at your whole situation –income, plans, goals – and build something that actually works for your household.”

HIGH-LVR HOMEOWNERS: DON’T MISS OUT

If you bought recently with a small deposit, your loan may have started on a higher interest rate. But with property values increasing across many regions, homeowners with less than 20% deposit may now qualify to refinance at a better rate – potentially saving hundreds of dollars a month.

Even if you’ve only owned your home a short time, a quick check-in with a mortgage adviser could be worth thousands over the next year or two.

WHY WORK WITH A MORTGAGE ADVISER?

In a market where every bank is moving at the same p ace, it pays

to have someone looking beyond just one lender. At Century 21 Financial, we help you:

• Understand which banks will offer you the most competitive deal

• Structure your lending to suit your financial goals

• Handle the paperwork, negotiation, and switching

• Maximise cashback offers and policy exceptions where possible And remember – our services come at no cost to you , as we’re paid by the lender you choose.

FINAL THOUGHTS

With interest rates on the move again, this is a timely opportunity to review your mortgage and get ahead of the next wave of changes. Whether you're coming off a fixed term, stuck on a high rate, or planning to buy – now’s the time to get strategic.

Talk to Century 21 Financial today to find out where you stand – and how much better your mortgage could be working for you.