The Reserve Bank held the Official Cash Rate in October, the deposit rules are staying put, and new rules about what you must tell your insurer are due by November 2027. Here is what that means for you.
The OCR was held at 2.75%
On 28 October the Reserve Bank held the Official Cash Rate at 2.75%. The vote was 4–3, with three members wanting an increase to 3.00%. Markets had expected a rise.
The major banks still expect increases. ANZ and ASB are forecasting three quarter-point rises, from December, taking the OCR to 3.5%. BNZ expects a December move and a peak of 3.75% by mid-2027, and Westpac sees a peak of 4%. Kiwibank expects a smaller rise to 3% by the end of the year. These are forecasts, not decisions. The next OCR decision is in December.
What it means for your mortgage rate
A held OCR does not freeze mortgage rates. Fixed rates follow wholesale funding costs and expectations about future OCR moves, so they can move before the Reserve Bank acts. Banks raised fixed rates through July and August, and the two-year swap rate, a key input for fixed pricing, was around 3.90% in late October, down from 4.05% a week earlier.
If a fixed term is ending in the next few months, do not wait until the last week to look at your options. We can compare lenders, and in some cases you can lock in a new rate ahead of your expiry date.
Deposit rules are unchanged
In August the Reserve Bank kept its lending rules as they are. In plain terms, banks still want a 20% deposit for a home you will live in and a 30% deposit for an investment property. They can lend a limited share of their loans below those levels, which is why a smaller deposit is sometimes possible.
The Reserve Bank plans to review the settings in about twelve months, sooner if conditions change. Each lender also has its own criteria, so what deposit you need depends on the lender as well as the rule.
Life and health insurance: new disclosure rules coming
The Contracts of Insurance Act 2024 was passed in November 2024 and is due to take effect no later than 15 November 2027. Until then, the current rules apply.
The main change is to disclosure. Insurers will have to ask you the right questions when you apply, and you will need to take reasonable care not to make a misrepresentation, rather than working out for yourself what to tell them. Insurers will also have to assess and pay claims within a reasonable time, and consumer life and health policies must be written in plain English.
Not telling an insurer something it needed to know is a major reason claims are declined. Whatever the rules say, answer every question fully and accurately when you apply for life, trauma or income protection cover.
What to do now
Check when your fixed term ends, and ask us to compare rates ahead of it.
If you are buying with a smaller deposit, talk to us early about which lenders suit your situation.
If you are applying for life, trauma or income protection cover, answer every question fully and accurately, and ask us if you are unsure.
Want to know how this affects you?
Call 021 217 8208, or send an enquiry.
General information only, correct at 5 November 2026. It is not personalised financial advice. See our disclosure statement.
