This week, the Reserve Bank of New Zealand issued an emergency announcement, cutting the official cash rate by 75 basis points, to a record low of 0.25 per cent. Banks immediately passed on the cut in full to their floating-rate customers, and fixed rates are starting to drop as well.
In his statement, RBNZ governor Adrian Orr acknowledged that the negative impact of COVID-19 on the economy will be significant, but added that “several factors will continue to assist and support economic activity in New Zealand.” By decision of the Monetary Policy Committee, the OCR is set to remain at this level for at least 12 months, with a view to launching a Large Scale Asset Purchase programme of NZ government bonds in the future if needed.
Following the announcement, major banks have immediately passed on the full cut to their floating-rate customers, and some are already reviewing their fixed rates as well. This can give New Zealanders an opportunity to focus on repaying their mortgage faster, and once again, our Mortgage Link advisers are here to help them choose the right mortgage structure for their financial needs.
With so many factors at play, talking to a mortgage adviser can give your clients the peace of mind they need to make a well-informed decision.
To get in touch with the team at Mortgage Link, please contact:
021 835 506
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