How to use this tool
1
The history chart shows how the OCR and mortgage rates have moved together over time. Notice how floating rates track the OCR most closely.
2
Pick a scenario — a rate hike, hold, or cut — to see how current mortgage rates would likely respond to that OCR change.
3
Enter your loan amount to translate rate changes into real dollar differences on your monthly repayment.
Current OCR
2.25%
Held since Nov 2025
Avg floating rate
6.05%
Spread: +3.80%
Avg 1yr fixed
5.18%
Most popular term
Next RBNZ decision
8 Jul 2026
29 days away
OCR vs mortgage rates — history
OCR
Floating
1yr fixed
2yr fixed
What if the OCR changes?
Select a scenario to see the estimated impact on current average rates across NZ banks.
Hikes are uncommon at current OCR levels ·
Cuts reflect the most likely near-term scenarios ·
75bps+ moves excluded as historically rare
Term
Current avg rate
Projected rate
Change
Floating rates typically move by ~90% of an OCR change. Fixed rates move less — short terms (~60%) respond more than long terms (~20%) because fixed rates already price in expected future OCR movements.
What does this mean for my repayments?
Adjust your loan amount to see the monthly dollar impact across the most common terms.
Understanding the OCR and your mortgage
What is the OCR? The Official Cash Rate is the interest rate the RBNZ sets for overnight lending between banks. It’s the foundation that all other NZ interest rates are built on.
Floating vs fixed: Floating rates move quickly with the OCR — often within weeks of a decision. Fixed rates are influenced by wholesale swap rates, which already factor in where the OCR is expected to go, so they move less in response to a single decision.
What are basis points? One basis point (bps) equals 0.01%. So a 25bps cut means the OCR drops by 0.25% — for example, from 2.25% to 2.00%.
On a fixed rate? OCR changes won’t affect your repayments until your fixed term expires and you refix. The rates shown here reflect where your next fixed rate could land.
Rates are sourced from interest.co.nz and updated daily. OCR pass-through estimates are based on historical averages and are not guaranteed. Repayments are indicative only, calculated on a 25-year principal & interest loan. This tool is for educational purposes only and does not constitute financial advice.
