All posts by Jason

OCR Held @ 0.25% but plans afoot to take it negative

The Official Cash Rate (OCR) is being held at 0.25 percent in accordance with the guidance issued on 16 March.

The Committee noted that a negative Official Cash Rate (OCR) will become an option in future, although at present financial institutions are not yet operationally ready.

It was noted that discussions with financial institutions about preparing for a negative OCR are ongoing.

1 and 2 year fixed rates now in the 2’s…who would of ever thought.! 😉

Temporary Mortgage Relief

The main banks are out with temporary mortgage relief packages in line with the 6 month “holiday” announced by the Government last week. This program is a JV between the RBNZ, retail Banks and the Government.

Options include taking interest only for 12 months ie: paying only the interest cost with no payments to reduce the amount of the loan.

Or a loan repayment deferral which involves no repayments at all for 6 months.

Make no mistake, this is no “Mortgage Holiday”.

Your loan amount will increase while your repayments are paused.

And the Lender will still charge interest on what you owe on your loan. This interest is added to your loan amount and they charge interest on that amount as normal.


Bank Assistance

Facilities are being put in place to temporarily assist customers facing cash flow issues.

Options include..


Waiver of home loan application, top-up, and re-documentation fees (Early Repayment Adjustment fees still apply).


  • Interest only repayments on home loans for up to 3 months.
  • Home loan holiday for up to 3 months (interest will still be added to the loan).
  • Ability to extend home loan term for up to 3 months.

OCR Slashed 0.75% to 0.25%

This morning the Reserve Bank has slashed the Official Cash Rate by 0.75% to 0.25%. We have never been here before folks. Historic.

Floating interest rates and short term fixed interest rates should get a trim depending on how much of the margin main Banks don’t keep for themselves.

Swap Interest Rates collapse

On one day back in late June 2016 when the UK voted for Brexit our 5 year swap rate fell by 7% to 2.32%.

With a global flight from equity to bond markets this week our 5 year swap rate stands at a meagre 0.77%.

Fixed interest rate falls beckon for mortgage holders.