New Zealand's largest mortgage lender, ANZ NZ, has lowered its mortgage test interest rate to 8.05%, which is its lowest since October 15. The bank's previous test rate was 8.5%. The second-largest lender, Westpac NZ, has confirmed its test rate of 8.15%, which is down from 8.65% after the Reserve Bank announced its latest OCR decision. Kiwibank has reduced its test rate to 8% and TSB Bank has set its test rate at 7.9%. The Reserve Bank has lowered its official cash rate to 4.75% in an effort to bring down inflation. The Reserve Bank aims to keep inflation between 1% and 3%. The OCR has a significant impact on the test interest rates set by banks. The OCR affects the interest rates that banks charge on loans, especially mortgages. As the OCR decreases, the test interest rates also decrease. This makes it easier for homebuyers and first-time buyers to get approved for mortgages. In contrast, higher OCR makes it more difficult for homebuyers to get approved for mortgages due to higher test interest rates. With the OCR at its current level, it is a good time to apply for a mortgage as the test interest rates are relatively low. However, banks may change their test interest rates at any time, so it's essential to check with them for the latest rates.