If you had a mortgage before Covid, you’ve lived through one of the wildest interest-rate cycles in New Zealand’s history.

During the pandemic, the OCR was pushed down to 0.25%. Fixed rates starting with a “2” suddenly became normal. Then, between late 2021 and 2023, the Reserve Bank lifted rates by more than five percentage points to tame high inflation, sending mortgage repayments sharply higher.

Many households are now refixing at rates lower than the 2023 peak, but still well above Covid lows. The latest cut in the OCR back to 2.25% has signalled the likely end of the easing cycle, not a return to ultra-cheap money.

From a broker’s perspective, here’s how we frame it with clients:

• Don’t anchor to Covid rates. Those were emergency settings. Planning your budget around them is risky.
• Think in ranges, not single numbers. Ask: “Can we still cope if rates are 1–2% higher again?”
• Use structure to manage risk. Splitting between 1-, 2- and 3-year fixes can smooth out surprises rather than betting everything on one term.
• Keep your options open. Banks are competing again. Refinancing or restructuring can save money, but only if total costs (including cash-backs and legal fees) stack up.

In short: the rate rollercoaster is slowing down, but we’re not returning to the cheap-money era. The game now is building flexibility into your home loan, not chasing the absolute lowest rate on the board.