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OCR has dropped to 3.50 %

8 April 2025
OCR has dropped to 3.50 %
New Zealand's OCR has dropped to 3.50 %! 
 
Official Cash Rate (OCR) drops typically lead to lower interest rates, which can have positive implications for various financial situations.
 
Here’s what you can consider:
 
For Homeowners & Borrowers:
 
  • Refinance Your Home Loan: If you have a fixed-rate mortgage, personal loans or credit card debt, consider refinancing to a new lower rate. This could significantly reduce your monthly repayments (and get cash contribution from the new bank!)
  • Shorten your Loan Term: If you’re comfortable with your financial situation, increasing your loan repayments can help you pay off your mortgage faster. Run your numbers with our Loan Repayment calculator.
  • Consider a Fixed-Rate Home Loan: If you’re concerned about future interest rate rises, locking in a fixed-rate mortgage can provide certainty.
  • Consolidate Debt: If you have multiple debts, consolidating them into a single loan with a lower interest rate can simplify your repayments.
 
For Savers:
 
  • Switch to a Higher-Interest Account: While interest rates may still be relatively low, look for savings accounts or term deposits offering the best possible returns.
  • Consider Investing: If you’re comfortable with risk, investing in shares, bonds, or other assets can potentially generate higher returns than traditional savings accounts. Learn more about Investing.

Important Note: Before making any financial decisions, consult with a financial adviser to assess your unique circumstances and goals. They can provide personalised advice based on your specific needs.
 
Would you like to know more about how OCR changes affect different financial products or discuss your specific situation? Contact us and we can help you have a plan in place! 

This post was written by

Trish Marsden - who has written 8 posts

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