A Timely Shift in the Market
Today, the Reserve Bank of New Zealand announced a drop in the Official Cash Rate (OCR), marking a potential turning point for Kiwis who have been watching interest rates closely before making big financial decisions - like building a new home.
After a prolonged period of rate hikes to curb inflation, this easing signals renewed confidence in the broader economic outlook. For those planning to build, it opens the door to greater borrowing power, improved affordability, and a boost in long-term confidence.
A lower OCR doesn’t just impact banks, it filters through the entire housing ecosystem. While mortgage rate changes are ultimately set by lenders, the Reserve Bank’s decision is a key indicator of where the market is heading.
1. Borrowing conditions are improving.
Banks often adjust interest rates in response to OCR changes. If you’ve been holding off on your build due to borrowing costs, now may be the time to revisit your finance conversations.
2. Planning becomes more predictable.
A stabilising economy and reduced rate pressure help improve budgeting certainty, a major benefit when entering a fixed-price build contract.
3. Confidence is returning to the market.
We’re already seeing renewed interest from clients who had delayed decisions. A lower OCR may accelerate buyer activity and bring greater momentum to the new build space.
4. Build conditions are the strongest they’ve been in years.
Material prices have levelled off, construction timeframes have improved, and Landmark Homes teams across the country are ready to help you get started on the right terms.
This OCR change doesn’t just reduce borrowing costs, it helps reset the landscape for homebuilders. For those with long-term goals, the combination of improving financial conditions, stable build costs, and flexible design options makes this an ideal time to take action. Even if you’re not ready to break ground, it’s the perfect opportunity to explore your options and lay the groundwork for what’s ahead.
Every client’s financial situation is unique, and so is their building journey. If you're considering your next step, our experienced New Home Consultants are here to offer personalised advice tailored to your needs.
Talk to a New Home Consultant today or explore our Ready to Build Plans
