The mortgage market is in flux, and borrowers are on the edge of their seats! The Reserve Bank's decision to slash the Official Cash Rate (OCR) by 25 basis points to 2.25% on November 26th, 2025, has sent ripples through the financial world. This move, anticipated by analysts and markets alike, marks the eighth rate cut since May 2023, when the OCR peaked at 5.50%.
But here's the twist: The Co-operative Bank took the lead, reducing its floating mortgage rate by a significant 31 basis points to 4.99%, a bold move that might just be the first domino to fall.
As we eagerly await further updates, here's the current snapshot of floating rates:
| Bank | Current Rate (%) | Change (bps) | New Rate (%) | Effective Date |
| --- | --- | --- | --- | --- |
| ANZ | 5.89 | - | - | - |
| ASB | 5.99 | - | - | - |
| BNZ | 5.99 | - | - | - |
| Kiwibank | 5.80 | - | - | - |
| Westpac | 6.09 | - | - | - |
| Cooperative Bank | 5.30 | -31 | 4.99 | December 12th |
| Heartland Bank | 5.45 | - | - | - |
| SBS Bank | 5.99 | - | - | - |
| TSB | 5.94 | - | - | - |
*Note: These rates are effective for existing borrowers. New clients can often secure these rates sooner.
Borrowers, take note! You have the power to request an earlier reduction in your mortgage rate. While banks are obligated to provide advance notice of rate changes, this delay primarily applies to rate increases. So, don't hesitate to inquire about getting that reduced rate sooner rather than later.
Now, the million-dollar question: What's the deal with fixed rates? As of now, they remain unchanged, and it's unlikely they'll budge. Wholesale swap rates have been stagnant since the October 8th surprise drop. This time, the expected OCR cut hasn't prompted a response from swap rates.
And this is where it gets intriguing: Will banks surprise us with a fixed-rate move? Stay tuned, as we'll be the first to bring you any breaking news and its potential impact.
Lastly, serviceability test rates are a work in progress, and we'll update you as soon as we have more information. Keep an eye on our tracking page for the latest.
In this ever-changing landscape, one thing is clear: banks are adjusting savings account rates alongside mortgage rates. How will this affect borrowers and savers alike? Only time will tell.
**What are your thoughts on the OCR cut and its potential impact on the market? Do you think banks will surprise us with further rate adjustments? Share your insights and predictions in the comments below! We'd love to hear from you.
