On 18th February 2026, The Reserve Bank’s February announced that the Official Cash Rate will remain unchanged at 2.25%. This means there will likely be no immediate changes to variable and short term interest rates, and longer term fixed mortgage rates will continue to be influenced more by global and wholesale (swap) rates than the OCR itself.
What else is happening?
- Although inflation is currently above the target range, it is expected to trend back towards 2% over the next 12 months and give some relief on the cost of living.
- Economic growth is also increasing – Lower interest rates are supporting higher spending by households and businesses.
- The unemployment rate has risen to 5.4%, but businesses are starting to hire more as economic activity increases.
- The positive news: borrowing capacity remains stable. Test rates generally change when mortgage rates change, and with no changes to the OCR – there has been no immediate pressure for banks to raise their test rates.
What does this mean for you?
Right now, your personal circumstances need to be considered when making decisions but we are seeing real value in considering 2-3 year fixed rate options. Why? Itโs about where rates may be when your shorter term fixes roll off. With wholesale (swap) rates trending upwards and expectations that the OCR may gradually increase over time, taking the opportunity to lock in longer term rates today can provide stability, and help you move through a period of potentially higher rates whilst being secured at todayโs pricing. Weโre helping clients in three key areas:
๐ Refix – Could it make sense to break and refix at a better or more stable rate? We can run the numbers for you.
๐ Refinance – Are you with the right lender for your circumstances? Lenders are not โone size fits allโ. All have different products, different sweet spots and often cash backs make the move worthwhile. We can look at this for you.
๐ Restructure – Is your loan set up to use your savings, improve cashflow, reduce your loan term or support your goals in the smartest way? The right structure can reduce interest, increase flexibility, and put you in a better position long term. We can review this for you.
๐ If you think it might be time to run your numbers, review your options, or you have any property or financial plans in the near future – Give us a call or leave a message HERE
We’re here to help you plan your next move.
