April 9, 2025
The Reserve Bank of New Zealand (RBNZ) has just announced another Official Cash Rate (OCR) cut, bringing it down to 3.50%. This move, aimed at further supporting the economy and easing financial pressure on households, has big implications for those considering building or buying a new home—and at KEY2, we see it as a positive shift for our clients.
But first, what exactly does a lower OCR mean?
The OCR is the interest rate set by the RBNZ that influences the cost of borrowing money across the country. When it goes down, banks generally follow suit by lowering mortgage rates, making it cheaper for people to borrow money for things like homes, renovations, or property investment.
Whether you’re a first-home buyer, upsizer, downsizer or property investor, here’s how this drop in the OCR could work in your favour:
With banks now under pressure to respond to the lower OCR, we can expect to see mortgage rates soften further in the coming months. This opens the door to more affordable lending, helping buyers qualify for higher amounts or simply pay less in interest over the life of their loan.
Because we specialise in new build properties, our clients already benefit from:
Now, with lower interest rates, your repayments on these brand-new homes become even more manageable. It’s a win-win.
For property investors, a lower OCR means borrowing to build or expand a portfolio just got cheaper. Combine this with increasing demand for new rentals in high-growth areas, and the timing couldn’t be better to secure a high-yield investment property.
We're already noticing a lift in enquiry volumes - particularly from buyers who were previously holding off, waiting for interest rates to stabilise. This recent cut is helping boost buyer confidence, which often leads to increased activity in the new build market.
Our team is currently working with several developers across Auckland and wider New Zealand, bringing brand-new, fixed-price homes to market - and this shift in OCR means more buyers can now act on these opportunities.
Lower interest rates don’t just mean cheaper lending—they’re a sign that now could be the ideal time to move forward with your homeownership or investment goals. Whether you're looking for your dream home or your next investment, the KEY2 team is here to help you make the most of this market.
Let’s talk
Want to see what this means for your budget or what new build opportunities are available? Contact us today or check out our latest listings.
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