Further cuts to home loan rates are far from guaranteed

Banks are lowering their floating and flexible home loan rates following yesterday's OCR cut, after already lowering their fixed term offerings.

Squirrel Mortgages Chief Executive David Cunningham says rates could fall further- if the OCR is cut again next month.

But he says we would probably also need to see a fall in rates on term deposits, which make up half of all banks' funding.

Cunningham says fixed mortgage rates have already fallen quite a bit, and are unlikely to fall much further, without more movement in term deposit rates.