Ready for a financial shakeup? The Reserve Bank's upcoming October 8th OCR announcement has the mortgage market buzzing with anticipation. What started as whispers of a modest 0.25% cut has evolved into predictions of a substantial 0.5% reduction – the largest we've seen since the COVID emergency response.New Zealand's economy is struggling, with GDP down 0.9%, prompting decisive action from financial authorities. We're diving deep into what this means for everyday Kiwis with mortgages. Currently, the best fixed rates hover around 4.72% for 1-2 year terms, with most longer options sitting below 5%. But after these anticipated cuts, we could see rates drop to approximately 4.5% for two-year terms – a welcome relief for households where mortgage payments consume up to 70% of income.Understanding how these changes affect your home loan requires knowledge of both OCR and swap rates. While OCR directly impacts floating rates, fixed rates depend on a complex relationship between OCR and the wholesale rates banks pay before adding their margin. The timing creates an interesting dilemma for homeowners: should you break your current fixed term and pay the fees to secure lower rates now, or wait until your term expires? We'll tackle this critical question in our next episode, helping you navigate these changing economic waters with confidence. If you're facing mortgage decisions in this volatile environment, subscribe now so you don't miss our upcoming breakdown of whether breaking and refixing is worth it in today's market.Send us a text Support the showBuy your first home in NZ Weekly Webinars You thought it's not possible or the dream is too far away? Come to my webinar and I will show you, you are much closer to your dream, than you think you are! Join Here - https://bit.ly/4m9SL72

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