Springboard to savings: August mortgage update

For the first time in a long while, there’s a sense of relief in the air for Kiwi borrowers. On Wednesday 20 August, the Reserve Bank dropped the Official Cash Rate (OCR) to 3%. That may sound technical, but here’s what it really means: your mortgage just got cheaper.

Banks wasted no time adjusting, and here’s where things stand today (Wednesday, 20 August, 2025):

• 6-month fixed: as low as 5.19%

• 1-year fixed: around 4.79%

• First-home buyers: a standout 3.99% 1-year rate (with 10% deposit)

After years of climbing repayments, this is the first genuine breathing space many households have felt.

What It Means For You

First-Home Buyers

That 3.99% deal could be the difference between continuing to rent and finally stepping through the front door of your own home.

Existing Homeowners

If your fixed term is coming up, now’s the time to reassess. Many households will save hundreds of dollars each month compared to where rates peaked.

Investors & Business Owners

With borrowing costs easing, there’s a fresh chance to review your lending structure and plan ahead with more confidence.

Julius says:

“This cut to 3% is exactly what we were expecting, and it’s good news for Kiwi households. The key now is to act strategically. Whether you’re buying your first home or reviewing your mortgage, this is the perfect time to reassess your options and make sure your lending fits your goals.”

Looking ahead

Could rates fall further? Quite possibly. Economists suggest there may be another cut or two within the next six months if inflation continues easing. That means there’s room for opportunity. But the right move depends on your personal strategy. For some, fixing now locks in stability. For others, a shorter term may leave the door open for even lower rates ahead.

Either way, spring is nearly here, and with it comes fresh opportunities. Let’s turn your next move into the mortgage win of the century