Mortgage rates edge even lower

  • The RBNZ cut Official Cash Rate (OCR) to a record low 1.0% in August, and could cut it again in the future.
  • Floating rates swiftly dropped after the RBNZ’s surprise 0.5% OCR cut in August.
  • Interest rates for shorter-term mortgages had dipped lower this year, and eased further in the wake of the RBNZ’s August cut.
  • Longer-term mortgage interest rates had already been falling prior to this year’s RBNZ rate cuts. The significant dip in these rates occurred between 2017 and early 2019.
  • Borrowers can lock in very low interest rates now, but should still plan to deal with higher interest rate costs over the long run.

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Chris Tennent-Brown

ASB Wealth Senior Economist

Chris has worked as an economist for ASB and Commonwealth Bank of Australia in Sydney since 2005. His work has involved monitoring and forecasting trends in the New Zealand economy, with a focus on drawing implications for financial markets and investments. Chris is passionate about savings issues, and much of his current work is focussed on broadening peoples understanding of investments. Chris obtained a Bachelor of Commerce at Auckland University, majoring in Economics, and prior to joining ASB worked in the funds management industry for Bankers Trust and BT Funds Management. With over 20 years' experience in finance, Chris has also spent several years farming, and was a New Zealand representative cyclist. When not at work, Chris likes to travel, cycle, and spend time with his family and numerous pets.

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