Mortgage Rate Cuts โขProvide Relief for Kiwi homeowners, Further declines Expected
Auckland, New zealand – fallingโ interest rates are โขeasing financial pressure on New Zealand homeowners, with more โฃrelief anticipated as loans are renewed, according too recent data and industry analysis. The โOfficial Cash Rate (OCR)โฃ has โdroppedโ 300 basis points since August ofโ last year, falling from 5.25%โ to 2.5%, โคputting moreโค disposable income back into the pockets of New Zealanders.
The New Zealandโฃ Banking Association (NZBA) reports that approximately 40% ofโ home loan โcustomers areโ currently paying more than their minimum repayments, indicating a proactive approach to debt reduction. โ”That’s especially true for borrowers on floating rates, โand will assist those on โfixed rates as those loans come up forโค renewal,” said NZBA Chief Executiveโค Roger Beaumont.
Recent figures โฃshowโค 25% โofโฃ the 60,249 new home loans opened in the last sixโค months were issued to frist-time buyers. Beaumont noted, “It’s great to see first homeโ buyers taking โฃadvantage of the current property market andโ getting into theirโฃ first home,” adding that declining house prices -โ notably from post-COVID peaks – โคand decreasing borrowing costs are contributing factors.
However, the window of chance for first-home โขbuyers may be closing. Nathan Miglani, managing adviser at โSquirrel, predicts increased competitionโ from property investors as interest rates continue to fall. “For first-home buyers, this isโฃ now theโข goldenโค time for them to get serious andโค try to โbe in the market as people will be surprised how quickly the market will shift next year,” Miglani stated.โ He pointed to the shift in fixed-rate mortgages, noting a drop from 6.79% last year to 4.49% currently, with โคpotential โfor rates to fall below 4%, triggering renewed investor activity.