RBNZ Cuts OCR to 3.25% – Here’s What Homeowners and Investors Must Do Now

On 28 May 2025, the Reserve Bank of New Zealand made its first major move in the new economic cycle — cutting the Official Cash Rate (OCR) to 3.25%. After a long period of high mortgage rates and tightening financial pressure, this is the signal many Kiwi homeowners and property investors have been waiting for.

The era of falling interest rates has begun. The question now is: what’s your next move?

Why the OCR Cut Is a Game Changer

The RBNZ has officially acknowledged what many households have felt for months — economic growth is slowing, inflation is cooling, and tighter monetary policy has done its job. The 0.25% cut is designed to support household resilience and gently encourage recovery.

This is more than a symbolic shift. It’s a strategic turning point.

Key Market Signals to Watch

• Lending rates are falling. Major banks have already begun trimming fixed and floating mortgage rates.

• The property market is still soft. House prices remain subdued, new builds are slowing, and distressed sales are rising.

• Mortgage arrears are up. Over 12.43% of home loans are now in arrears — a clear sign of cash flow strain across the country.

Why Timing Matters

This rate cut opens a narrow but valuable window. Acting now could mean the difference between stabilising your financial position — or struggling to refinance later as banks tighten their criteria in response to rising defaults.

Your Strategic Action Plan

Here’s how to take advantage of this shift — not just survive, but set yourself up for the next market phase.

1. Review Your Mortgage Now

If you’re on a high fixed rate about to expire — or paying over the odds on a floating rate — now’s the time to act. Lower rates mean real savings. Restructuring could free up much-needed cash flow and reduce financial stress.

2. Talk to the Experts at Wyndham Finance

We’ve helped thousands of Kiwis navigate changing market conditions. Whether you need to:

• Refinance to improve cash flow

• Consolidate debts into one manageable payment

• Secure a more flexible repayment plan

We’re here to help you move fast and smart.

Be Proactive — Not Reactive

Rates might continue to fall. But don’t wait until your equity drops further or lenders tighten their rules. Getting ahead of the curve gives you more options and more leverage.

The market is moving. Are you?

Secure Your Financial Future Today

Contact Wyndham Finance for a free, no-obligation mortgage review. Let’s turn this rate cut into a strategic win for you.