June/July update | What borrowers need to know right now
It’s been a busy couple of months, so we’ve rolled our June and July updates into one.
I recently managed to spend some time across the ditch with my son in Sydney, a city I hadn’t spent much time in before. There was plenty happening, and we timed it perfectly to catch the final night of the Vivid Festival which definitely lived up to the hype.
Side note: If you think house prices in Auckland are expensive, Sydney is on a whole other level!
While I was away, Ben kept everything ticking along back home and now we're both back into a full calendar of client meetings, builder catch-ups and industry events.
It's shaping up to be another busy few months, and we're looking forward to helping more people on their property journey.
Market update
A few signs are pointing to the economy starting to show some life again.
BNZ’s latest Markets Outlook noted improving business and consumer confidence, helped in part by slightly lower fuel prices. BNZ also highlighted that residential building consents are running well ahead of last year, although they noted this feels a little stronger than what many builders are experiencing on the ground.
The Reserve Bank has recently increased the OCR (Official Cash Rate) by 0.25% to 2.50%. This was largely expected by markets, and BNZ’s Stephen Toplis noted that the 2-year swap rate, which is an important driver of 2-year fixed mortgage rates, barely moved after the announcement because the increase was already mostly priced in.
What does this mean for home loan borrowers?
Basically borrowers should not automatically assume this week’s OCR increase will flow straight through to higher fixed mortgage rates. Floating rates are more likely to move, but most Kiwis tend to favour fixed rates rather than floating.
Borrowers may also have noticed some movement in fixed rates recently. Over the last week or two, a number of banks have reduced some medium to longer term fixed rates, following falls in wholesale rates. While that’s encouraging, there’s still plenty that could influence where rates head next, including inflation, global events, fuel prices and future Reserve Bank decisions.
Economy expert Tony Alexander’s latest investor survey also pointed to a cautious property investor market. Many landlords are still finding it harder to secure good tenants, rent increase expectations remain subdued, and investor buying intentions are still quite weak.
That continues to create a mixed property market, but with some good opportunities out there for home buyers.
As always, the right loan structure depends on your own situation, plans and comfort with risk. If your fixed rate is coming up for review, it is worth getting advice early rather than leaving it to the last minute. Don’t forget, most banks will let you lock in a new fixed rate up to 60 days before your current fixed rate expires.
Sam & Ben out and about
Ben recently attended an Advance Build networking morning in Warkworth and came away impressed by the quality of their homes and the funding options available for buyers considering off-site builds.
While off-site builds can be a great option, the lending process differs from a standard build. If it’s something you’re considering, talk to us early so we can help structure the finance correctly before contracts are signed.
You can learn more about Advance Build here.
BuildNZ Expo July 2026
Ben and I will also be at BuildNZ this month.
For anyone thinking about building, renovating, developing, or working in the construction sector, BuildNZ is well worth attending. There are exhibitors from across the industry and some excellent speakers across both days. Find out more about BuildNZ here.
I’ll also be at the VIP showhome opening for Overdale Estate in Putāruru on Friday 24 July.
The team at Ultimate Builders will be officially opening their new showhome at 2 Tumu Drive with a formal blessing and ribbon cutting. It's always encouraging to see quality new housing developments taking shape in regional communities, creating more opportunities for people to get into homes they'll be proud of.
After some mortgage or property advice?
Whether you’re looking to buy your first home, reviewing your mortgage, planning a build, or looking at investment options, we’re here to help you through the process.