BaseIQ
Founding Member

Demonstration · one client

What an OCR change does to one client – and who they talk to

Pick a scenario for the Reserve Bank's next decision and watch the same client go two ways: the bank's letter and the standard rate, or a Base IQ check-in in your name 90 days out. OCR today 2.75% (Held at 2.75% on 28 Oct 2026 (the committee voted 4–3 against a 0.25 rise)). Next decision 9 Dec 2026.

Anna Smith: two paths from today

Scenario: OCR up 0.25 on 9 Dec 2026 → 3.00%. Fixed rate ends 14 Jan 2027. Next term 12 months.

Today1 Nov 2026Base IQ check-in (now)2 Nov 2026OCR decision9 Dec 2026Fixed rate ends14 Jan 2027New 12-month term ends14 Jan 2028A · Does nothingThe bank's letter arrives. The loan rolls onto the standard rate.$1,663 a fortnightRate at the end5.60%ASB's standard rate (special +0.60) after the changeB · Reviewed with youBase IQ check-in 90 days out, in your name.$1,663 a fortnightRate at the end—waiting for the check-inDifference over the 12-month term$0
Today$1,663 a fortnight at 6.19%
A · Does nothing$1,592 a fortnight at 5.72%
B · Reviewed with you$1,480 a fortnight at 4.95%

$112 a fortnight, about $2,922 over the term. And on path B the review is booked, the details are confirmed, and the next loan starts with you – not with the bank's retention team.

Over the next 12 monthsNowA · Does nothingB · Reviewed with youA − B
Rate6.19%5.72%4.95%0.77
Payment a fortnight$1,663$1,592$1,480$112
Interest paid over the term—$30,594$26,446$4,148
Balance at the end of the term$540,000$529,201$527,976$1,225
Who the client talks to—The bank, when its offer letter arrivesYou (90 days out, in your name)The next loan

How it is worked out. Path A: ASB's advertised 12-month special plus 0.60 (the bank's standard rate), moved by 50% of the OCR change when the change comes before the rate ends. Path B: the lowest advertised 12-month special (Kiwibank, 4.95%), rate-locked before the decision when the rate ends inside the 60-day lock window, otherwise taken at the end. Table loan, 24 years left, paid fortnightly. Rates: calculate.co.nz (lowest advertised rate for borrowers with at least 20% equity), 21 Sep 2026.

OCR: Held at 2.75% on 28 Oct 2026 (the committee voted 4–3 against a 0.25 rise). Next decision 9 Dec 2026. Westpac (28 Oct 2026) expects a 0.25 rise in December to 3.00% and a peak of 4.00% by September 2027 – a view, not a fact. Sources: Westpac IQ – RBNZ October 2026 Monetary Policy Review; interest.co.nz, 30 Aug 2026 – economists expect the OCR to rise to 2.75%; calculate.co.nz – NZ interest rates (OCR 2.75% from 2 Sep 2026; bank rates as published 21 Sep 2026); Squirrel – key OCR dates for 2026 and 2027.

Information, not advice. The adviser gives the advice in the review the client books.