OCR on hold: What 2026 looks like for homeowners

The Reserve Bank last week left the official cash rate (OCR) unchanged at 2.25 percent, a move widely anticipated by markets.

In its commentary, the central bank signalled that it was seeking to balance the need to support economic recovery with maintaining stimulatory interest rate settings, while continuing efforts to ease inflation pressures.

Nathan Miglani, Managing adviser at Squirrel, explained what the OCR hold meant for the homeowners' market. Miglani described 2026 as a “stable” year for homeowners in the months ahead.

“Post COVID, the market saw interest rates rising too fast too quickly, and then started to drop and stabilize last year” Miglani told The Indian Weekender.

He said the decision to hold the OCR would bring reassurance to the market.

With a hold on the OCR this time, it will “provide stability that was required for the homeowners,” Miglani added.

Nathan explained that stable interest rates will provide stability and help increase the activity in the property market.

“In Auckland central, and in Canterbury, the momentum has picked up quite well,” Miglani said.

“Builders and developers have started to buy development land actively again and the trend of buying and selling is also active,” he added, explaining that overall this would be a busy year for the property market.