Major Australian banks are expecting the RBA to announce a cash rate cut on Tuesday. Credit: (AAP Image/Joel Carrett)

David Bassanese, chief economist at Betashares, an exchange-traded funds provider, is one of those tipping a rate reduction.

“It would break the hearts of millions of Australians and undermine the RBA’s still tarnished public reputation.”

How far could rates fall?

“I’d like to see the RBA cut rates by 0.35 per cent to 4.0 per cent so we can finally get the cash rate cut back to cleaner 0.25 per cent level increments,” he said.

Will banks pass on the rate cut to customers?

“They tend to pass on rate changes within 10 to 14 days of an RBA announcement.”

Impact on your fixed mortgage

“If so, what they would look like and whether the bank would be willing to negotiate and waive any break fees that might come your way.”

Should you move to lower repayments?

“If you can afford it, keep the higher repayments. Each time you do that after the rate drops, it will shave about a year off your mortgage, over 30 years.”

How can you negotiate with your bank?

Cooke suggested shopping around to see if you are getting the best deal, which can also give you leverage with your current lender.

“In the modern market, loyalty does not pay.”

Can renters negotiate their rent?

The information in this article is general in nature and is not intended as financial advice. You should consult with a licenced professional to make the decisions that are right for you.