Now Could Be the Perfect Time to Build Your Dream Home

If you’ve been considering buying a home or building new, recent changes in New Zealand’s interest rates could be the ideal reason to take the next step. The Reserve Bank of New Zealand (RBNZ) has lowered the Official Cash Rate (OCR) to 3.25 percent as of May 2025¹. We’re here to help you understand what this means for you and why building your new home with us is a smart choice in today’s housing market.

What Does the OCR Cut Mean for You?
In response to the Reserve Bank’s OCR cut, major banks like ANZ and BNZ have already lowered their mortgage rates, passing on savings to borrowers and making finance more accessible for home buyers and builders¹².

This results in:

Lower monthly repayments for new home buyers.
 Lower repayments mean you have more flexibility in your budget. This could allow you to add that extra bedroom, create a larger living space, or include those special features that make your home uniquely yours.

Greater borrowing power, allowing you to build a larger or more customised home.
 With more borrowing capacity, you are not limited to basic layouts or standard specs. You can work with David Reid Homes to design a home tailored to your lifestyle, with flexible spaces, smart storage, and design details that suit your family’s needs.

Increased confidence in your budget, helping you plan your build with less financial stress.
 Building a new home is a major investment. Knowing your mortgage repayments are manageable lets you focus on the exciting parts of the build, design choices, landscaping, and creating a space you will love, without constantly worrying about the numbers.

Why Building a New Home Makes Sense Right Now
Lower interest rates and increased borrowing capacity mean you can get more from your investment when you build new. Instead of existing properties that may need costly repairs or renovations, building gives you a home designed specifically for your needs, with the latest in energy efficiency and modern living.

“The current OCR reduction presents a great opportunity for Kiwis to invest in homes designed for their lives, not just their budgets,” says Ben Allan, Director of David Reid Homes. “Building new means you’re creating a home that fits your lifestyle perfectly, with spaces designed exactly as you want them.”

With the financial pressure eased, you can focus on what matters most—choosing the right layout, finishes, and features that will make your home work for you now and in the future. Building new also means greater peace of mind knowing your home meets current building codes and standards, helping ensure comfort, safety, and value for years to come.

Get in Touch
Interested in learning more about building with David Reid Homes? Contact us today for a no-obligation chat. Let us turn your vision into a home you will love for years to come.

Disclaimer
David Reid Homes provides general information about the housing market and borrowing conditions. We are not financial advisors. For personalised financial advice tailored to your circumstances, we recommend consulting with a qualified financial professional before making any decisions about financing your home build.

References
Reserve Bank of New Zealand. (2025, May 28). OCR lowered to 3.25. https://www.rbnz.govt.nz/hub/news/2025/05/ocr-lowered-to-3-25

New Zealand Herald. (2025, May 28). Official cash rate announcement: Banks drop interest rates after Reserve Bank cuts OCR. https://www.nzherald.co.nz/business/official-cash-rate-announcement-banks-drop-interest-rates-after-reserve-bank-cuts-ocr/ZY4VPD34YBFGNAQNFW6PNJDGUM/