22/06/2025
From another drop in the OCR to shifts in property values and council valuations, there’s lots happening in the market right now. Whether you’re due to refix or thinking about buying or managing a rental - these updates could impact your next move!
Here’s what you need to know 👇
OCR UPDATE - WHAT DOES IT MEAN FOR BORROWERS?
The Reserve Bank has dropped the Official Cash Rate (OCR) again - now sitting at 3.25%. This is good news for borrowers, especially those due to refix soon.
We’re seeing more conversations about locking in long-term, but there’s no one size fits all strategy to your lending. The best strategy and solution depends on your goals, timeline and risk appetite.
Quick Snapshot:
✅ Rates are dropping
✅ Some lenders are jumping the gun and pushing clients to refix too early
✅ Strategic timing matters - the right move could save you thousands
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PROPERTY INSIGHT
The market continues its slow, uneven recovery. In May, national values dipped by just 0.1% and remain 1.6% below this time last year.
Key Movements:
● Hamilton: +0.1%
● Dunedin and Tauranga: both edged down by 0.1%
● Auckland: -0.3%
● Christchurch: -0.8% (a notable drop after a period of growth)
● Queenstown: +1.2% (leading regional growth)
Regional centres like Invercargill, Rotorua, and Hastings continue to show resilience - lifestyle appeal and affordability are driving factors.
Opportunities:
● First Home Buyers: You could benefit from low deposit allowances and softer prices
● Investors: You may find opportunities to negotiate or build deposits without the fear of fast rising prices
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LANDLORDS: ARE YOU READY FOR JULY DEADLINES?
If you’re a landlord or looking to purchase an investment property in New Zealand, there is a big deadline just around the corner: From 1st July 2025, all rental properties must meet Healthy Homes Standards.
Whether you’ve recently purchased a rental, you’ve been holding property for years or looking at purchasing a rental property, now’s the time to get clear on what’s required - and how you can finance any upgrades that might be needed.
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NEW COUNCIL VALUATIONS
Recently, it was announced that Auckland values have dropped by an average of 9%. While this update is Auckland specific, I thought it would be important to note that council valuations aren’t a reflection of your property’s true market value - they’re used primarily to calculate your rates.
What does this mean for your lending?
Not much. Lenders typically don’t rely on council valuations. Instead, they use more accurate tools like Cotality, Valocity, or a registered valuation when assessing your property.
However, if you’re an Auckland property owner and your CV dropped by less than the 9% average, you may actually see a higher than average rates increase.
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If you’d like to discuss how this affects you or you need help securing finance and navigating your property and financial journey - Reach out to Carl for a zero obligations chat or review.
Carl Mann
Your Local Mortgage Adviser
027 536 6480
[email protected]
