Home loan customers should hold off fixing their home loans as another rate cut is expected, experts suggest.

Multiple lenders are set to pass on the full 25 basis point cut later this month but experts are predicting that’s not where it ends, with another cash rate still to come in 2016.

Sluggish inflation figures released this month prompted Reserve Bank of Australia to cut the cash rate for the first time in 12 months to a record-low of 1.75 per cent.

Financial comparison website Mozo’s spokeswoman Kirsty Lamont said unless borrowers are under financial pressure and need certainty around their loan repayments they shouldn’t fix just yet.

Mozo spokeswoman Kirsty Lamont said borrowers should wait a few months before fixing their home loan.Source:News Corp Australia

“I would wait another couple of months before fixing because there is a strong possibility that the Reserve Bank may cut rates again,’’ she said.

“I would potentially look to fix then.”

Mozo analysis shows on a $300,000 30-year home loan the average variable rate deal after the latest cuts is 4.48 per cent and the monthly repayments are $1516.

This is compared to three-year fixed loans where the average rate is 4.31 per cent and monthly repayments are $1486.

AMP’s chief economist Dr Shane Oliver is also forecasting another rate after the upcoming Federal election, sighting the unexpectedly low inflation in the March quarter for this week’s move and said there’s a real risk of now “tipping over into deflation.”

AMP chief economist Dr Shane Oliver expects the cash rate to drop to 1.75 per cent in August.Source:News Limited

“It’s unusual for the Reserve Bank to do just one rate cut, if they do one rate cut they usually do another one,’’ he said.

“Variable rates will probably go down even further which will take us to levels that most Australians have never seen before unless you were around in the 1950s.”

1300homeloan director John Kolenda is also urging borrowers to be patient and wait to fix.

1300homeloan director John Kolenda said there’s no need to rush to lock in your home loan rate.Source:Supplied

“Hold off until we see what happens with the variable rate deals over the coming quarter because there’s more pressure for them to come down,’’ he said.

He also forecasts a cash rate cut to 1.5 per cent after the federal election.

sophie.elsworth@news.com.au