2025 is already off and running, and we’ve got a couple of investor updates including interest rate changes, record-breaking investor activity and a couple of team updates. Let’s get into it!
OCR cut and interest rates
The Reserve Bank of New Zealand (RBNZ) has made its move, dropping the Official Cash Rate (OCR) by 0.50% to 3.75% (effective 22 February). In response, we've adjusted the On-call Account interest rate to 3.50% p.a. If you’ve been with us for a while, you'll know how we roll - we move On-Call Account interest rates quickly, whether rates are going up or down.
We’re also reviewed our Home Loan and Construction Loan interest rates to strike the perfect balance between offering solid returns for investors and competitive rates for borrowers. As of 5 March, interest rates will be reduced by 0.25%.
Investor activity: another record month
We keep a pretty close eye on turnover in our marketplace and December didn’t disappoint – investors hit a new record of over $40m of term investment orders filled! This includes customers placing term investment orders and allocations to our managed funds.
Most of this flow comes from Squirrel ‘selling’ new loans to investors, while our secondary market, where investors buy and sell among themselves, is humming along nicely at about $8m per month. It’s great to see the platform buzzing with activity.
Team update
There’ve been some exciting changes at Squirrel HQ. Gemma’s moved into our mortgage advice team, and Jessie will soon be joining the credit team. It’s awesome to see our team growing and shifting within the company. Congrats, Gemma and Jessie!