Prior to the central bank’s 2.30pm announcement, all 36 economists surveyed by Bloomberg said they expected the RBA would cut rates by 25 basis points to 3.60 per cent.

The economists also tipped that the RBA would deliver three more rate cuts by March 2026, to bring the official cash rate down to 3.1 per cent.

The cuts have sparked a rush from homeowners to refinance their mortgages, as competition between the banks heats up again.

Fresh data released by Mortgage Choice shows there was a 22 per cent spike in the number of Australians looking to refinance over the June quarter thanks to a rate cut in May, and there is a chance of a fresh wave of refinancing if the RBA cuts again on Tuesday afternoon.

Mortgage Choice chief executive Anthony Waldron says any cut to the cash rate would likely see a flux of mortgage holders looking to refinance.

“The Reserve Bank is expected to deliver another cut to the cash rate at its August meeting, which should encourage more borrowers to see if they can access a better rate on their home loan,” he said.

“This aligns with findings from the survey data, which show that 72 per cent of homeowners review their home loan at least once a year, up from 59 per cent a year ago.”

According to Mortgage Choice, 49 per cent of Aussies chose to refinance their mortgage to lower their interest rate, while 11 per cent wanted to consolidate debts and 10 per cent wanted to lock in a fixed rate or switch from fixed to variable (or vice versa).

That’s a 3.1 per cent increase in both the value and number compared with the December quarter.

The next quarter stats are due out on Wednesday.

Should Aussies refinance

Mortgage holders who can afford to keep up with their repayments could be thousands of dollars better off in the long-term.

Research released by Canstar shows the average Australian borrower with $600,000 debt could save $272 a month on their repayments if there is a third interest rate cut.

But if that same owner kept the additional $272 a month on their mortgage, they could be out of debt three years and three months earlier.

They would also pay $76,536 less in total interest over the life of their loan.

Australians are being reminded of the benefits of paying more than needed on their monthly repayments ahead of Tuesday’s highly predicted rate cut.

At the time of writing, the money market had factored in a near 95 per cent chance of rate cut, when the central bank announces their cash rate decision at 2.30pm.

“For those managing to hold their budgets together, consider keeping your repayments exactly the same,” Ms Tindall said.

“Every rate cut is another opportunity to invest back into your mortgage and potentially be debt-free months, if not years early.”