From Cold to Sold: How to Prepare Your Finances for a Spring Purchase

BY JULIUS CAPILITAN , C21 FINANCIAL

Winter might feel like a quiet time in the housing market, but it’s actually the best time to prepare for a spring purchase. With interest rates softening, lending criteria easing, and more listings expected in the warmer months, getting financially ready now could give you a serious head start.

Let’s unpack what’s happening in the market – and what it means for you.

Interest Rates Are Easing – And So Is the OCR

The Reserve Bank recently dropped the Official Cash Rate (OCR) to 3.25%, continuing its cautious strategy to support the economy without reigniting inflation. While another drop to 3% is possible later this year, we’re already seeing banks respond with competitive fixed rate offerings.

At the time of writing, many buyers can now secure a 1-year fixed rate of 4.95% , and for eligible First Home Loan applicants, rates as low as 4.29% are still available.

Julius says:

“ Whether you're a first-home buyer or refinancing, it's worth reviewing your options – you could save hundreds a month, for some a week. With banks being quiet the last few months, they now seem to have a larger appetite and thus create more opportunity for those in the lending space.

What’s Changed in Lending?

Banks have made several borrower-friendly tweaks in recent months:

• Lower test rates, making it easier to meet servicing requirements and access more funds

• More flexibility for boarder income or second earners

• Improved options for high-LVR borrowers, including cashbacks for most borrowers

If you’re not sure what LVR means, it stands for Loan-to-Value Ratio – essentially the portion of the home's value you're borrowing against. A high-LVR loan (typically over 80%) means you’re putting down less than a 20% deposit. While this can sometimes come with tighter criteria, many lenders are now more open to supporting high-LVR borrowers again.

Steps You Can Take This Winter

If you’re hoping to buy in spring (or just want to explore the idea), now is the time to prepare:

Check your credit score and reduce short-term debt

Get your budget in shape –including saving for upfront costs (legal fees, valuation, builders report, etc.)

Talk to an adviser about pre-approval – valid for 90 days

Having pre-approval in place means you can act fast once listings pick up. It’s non-committal, but gives you clarity and confidence around your buying power.

Spring Is Competitive – Get Ahead Now

Spring brings a surge of new listings, but it also brings more buyers into the market. In key centres like Auckland and Wellington, competition is already heating up. And while house prices remain 15-25% below 2021 peaks, we may be near the bottom of the market, with many economists expecting a modest recovery ahead.

Julius says:

“Don’t wait for the sunshine to sort your finances. The sharp buyers are the ones who start early – they’re ready to go the moment the right home hits the market.”

Fix, Float or Split? We Can Help You Decide

Should you fix for a year at today’s low rates? Float and wait for the next OCR drop? Or split your mortgage across different terms?

Century 21 Financial helps everyday Kiwis make smart, tailored mortgage decisions. Whether you’re a first-home buyer, self-employed, or just wanting to save on your current loan, they can do the maths and help you choose a strategy that fits.

Winter’s already here, but spring’s just around the corner – let’s make your next move the mortgage win of the century.