Weekly market update – week ending 23 October 2026

The week in brief

• Rates still rising. Advertised fixed rates have moved up across the market, and industry commentary says rollovers will cost most borrowers more than their current rate.
• The refix wave. Advisers are reporting a split on fixed terms, with floating falling out of favour while further OCR rises are expected.
• House prices drifting. ANZ economists expect house prices to keep drifting lower until mid-2027, and Treasury points to a North–South divide as higher rates squeeze buyers.
• Pre-approvals at TSB. TSB has changed its adviser credit settings so that all pre-approvals last up to 90 days.
• Year-end offers. Several non-bank and business lenders have launched end-of-year offers and commission boosts for adviser-referred deals.
• Fraud and scams. Aggregators are helping advisers spot more convincing fake documents and support clients who may be facing a scam.

Rates and the OCR

Lowest advertised rates are from the NZMAI interest rates page, as at 7:00am on 23 October 2026. The Reserve Bank raised the OCR by 0.25 percentage points to 2.75% on 2 September 2026, its second rise in a row, saying inflation had risen to 4.1% in the June quarter, mainly because of higher fuel prices. The next decision is the Monetary Policy Review at 2:00pm on Wednesday 28 October 2026. Commentators see a further rise as possible [to confirm], but the Reserve Bank has not signalled the outcome.

What it means for your conversations

• Check rollover dates now. Clients rolling off fixed terms in the next few months may face a higher rate. An early conversation gives them time to think about structure.
• Explain the trade-off between terms. Shorter terms may reprice sooner. Longer terms give certainty for longer. Set out the options and let the client decide.
• Keep records of the reasons. Note the client's goals and attitude to risk when they choose a term, so the advice process is clear.
• Be ready for questions after 28 October. Whatever the Reserve Bank decides, expect calls from clients the day after.

Lender and product updates

• TSB: All pre-approvals are now valid for up to 90 days, whatever the loan-to-value ratio (LVR) or debt-to-income (DTI) ratio. Lending at high LVR or DTI is still subject to TSB's available funding. The updated Retail Credit Settings document for third-party advisers has been on the TSB Adviser Resource Hub since 22 October.
• SBS Bank: Still offering cashback on qualifying new lending, and high-LVR owner-occupied lending up to 90% LVR (with conditions). Reminders this week: Akahu bank statements are accepted (most recent 90 days), adviser commission on drawn Reverse Equity Mortgages has increased, and a new 2-year option has been added to the First Home Combo. Contact the lender for its adviser rates.
• FMT (First Mortgage Trust): A construction and development finance offer for new milestone applications, with no line fee and no quantity surveyor (QS) report required; initial drawdown needed by 24 December 2026. FMT has also added two business development managers (BDMs) to its Auckland team. Contact FMT for pricing and criteria.
• Prospa: An end-of-year commission boost on eligible business lending referred and settled between 20 October and 31 December 2026.
• General Finance: A "Pre-Christmas Settlement" offer for short-term property finance to help clients settle before Christmas.
• Non-bank lenders generally: Industry commentary suggests advisers are considering non-bank lenders earlier, not just as a last resort, as borrower situations become more complex.

NZMAI passes on lender news for information. It is not a recommendation of any lender or product.

Running your practice

• Mortgage fraud warning signs. Fake payslips and bank statements are getting harder to spot. Verify documents at the source where you can, ask questions when something does not add up, and know when to escalate to your aggregator or the lender.
• Clients and scams. If a client may be facing a scam, slow things down, check the request independently and get specialist help early. Your aggregator can support you.
• Capacity, not demand. An industry leader says advice firms are held back more by capacity than by demand, with only 28% of New Zealanders getting financial advice in the past year. Now is a good time to look at where your admin time goes.
• Lending complaints. Financial Services Complaints Limited (FSCL) is running a free webinar on lending complaints and lessons from real cases (see Dates ahead). It counts as half an hour of continuing professional development (CPD).

Industry and technology

• Adviser technology. Tella and Newpark have announced a new direction for adviser technology, aimed at less admin and more time for advice.
• Data security. AffordX has announced ISO 27001 certification for information security. When you choose software, ask suppliers how they protect client data.
• AI and workflow. Interest is growing in using artificial intelligence (AI) and better workflows to handle more clients. Any tool you use still leaves you responsible for the advice.

Dates ahead

• Monday 26 October: Labour Day public holiday.
• Wednesday 28 October, 2:00pm: Reserve Bank Monetary Policy Review and OCR decision.
• Tuesday 3 November, 9:30–10:00am: FSCL Case of the Month webinar – Lending Update (free; registrations close 9am that day).
• Wednesday 9 December: Reserve Bank Monetary Policy Statement and OCR decision.
• Thursday 24 December: Last day for initial drawdown under FMT's construction offer.
• Thursday 31 December: Prospa's end-of-year commission boost ends.

Over to you

Seeing something different with your clients or lenders? Share it with other members in the Community, or send a question to NZMAI through Ask NZMAI in your member area.

Sources

• NZ Adviser daily news and NZA Week in Review, 19–23 October 2026
• NZMAI interest rates page, 23 October 2026
• Reserve Bank of New Zealand, OCR announcement of 2 September 2026 and published decision dates
• TSB adviser update, 21 October 2026
• SBS Bank adviser update, 23 October 2026
• FMT "Let's Talk Lending", October 2026
• Prospa adviser emails, 20–22 October 2026
• General Finance adviser email, 20 October 2026
• FSCL webinar notice, 20 October 2026
• AffordX announcement, 21 October 2026