A number of analysts are now expecting the Reserve Bank to cut interest rates as early as May 2019.
This has lead banks to cut mortgage rates. Kiwibank has cut its 5-year rate to just 4.29%.
HSBC is offering a 2-year special of just 3.69%. ANZ has cut its 2-year rate back to 3.99%
Deposit rates will likely also drift lower, meaning more people will start looking for an alternative place to invest, like in residential property.
John Kenel, CEO Assured Property