Home owners back to favouring floating rates in big numbers

Nearly half the mortgages taken out in November were on floating rates.

Reserve Bank data for New Lending Fully Secured by Residential Mortgage shows of the $7.9 billion lent in residential mortgages, $3.9 billion, or 49.4%, was on floating rates.

This was a much bigger shift to floating rates than in October and mirrored what happened at the end of 2024 when 47.4% of mortgage money was on floating rates, with home owners banking on the Reserve Bank cutting the OCR and long-term rates coming down.

They followed the same logic at the end of last year.