Interest rate cuts: Geelong’s biggest winner suburbs to save hundreds a month
See which Geelong suburbs will be the biggest winners, saving up to $210 a month, once the Reserve Bank starts slashing interest rates. SEARCH YOUR SUBURB
Geelong homeowners could save up to $210 month when the Reserve Bank pulls the trigger on the first interest rate cut.
The RBA is tipped to slash the cash rate as early as its next meeting on February 18 in the wake of easing inflation.
PropTrack research shows homeowners in the some of the region’s most expensive suburbs will get the biggest boost to their hip pocket based on each area’s typical home price.
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Lorne would notch the largest saving, with $210 shaved off the average monthly house loan repayment of $7990.
Mortgagors would save $170 a month in Manifold Heights and $160 in Newtown after one interest rate cut.
This would rise from $320-$430 for the top end of town after two rates cuts and up to $860 if there were four.
At the other end of the market, Norlane homeowners can expect to save $60 a month and $240 after four rate cuts.
The calculations are based on a recent buyer of a median priced house, with a 20 per cent deposit and a 30-year mortgage with an average interest rate.
REA Group economics executive manager Angus Moore said housing affordability had rapidly and significantly deteriorated since interest rates rose substantially from May 2022 to November 2023.
“That’s obviously been a handbrake for many people and has also been a bit of a headwind for home prices,” Mr Moore said.
SEE FULL LIST OF SUBURBS BY AVERAGE MORTGAGE SAVINGS
“As we head into this year, we are expecting we’re going to see a number of rate cuts, potentially as early as February.
“That’s going to start to improve that housing affordability and be a bit of a tailwind for home prices.”
GSC Financial Solutions mortgage broker Luke Eustace said homeowners in mortgage belt suburbs like Mount Duneed and Armstrong Creek were feeling the greatest pinch.
But there is light at the end of the tunnel, as he predicts banks will start offering more competitive rates to lure borrowers across once there’s a stronger signal that a rate cut is imminent.
“If they do drop the cash rate the biggest impact it will have is in sentiment,” Mr Eustace said.
“A .25 per cent cut isn’t going to be a material change for most people as far as their budgeting and borrowing capacity.
“It doesn’t really push the needle, but it will let people know that this is as bad as it’s going to be.”
Maxwell Collins director Nick Lord said sales rates and open inspection visitations were already on the up, with any rate cut likely to immediately buoy confidence.
“Historically we don’t see quarter of a percentage point affect the market but this time around, given where we have been over the past couple of years, I think it will make a big difference to the confidence of buyers and, not only that, but sellers who are happy to put their houses on the market and transact,” Mr Lord.
“We are seeing a massive amount of people in research mode, whether that be established product, or especially land sales, but they’re sitting on the sidelines waiting for more confidence.”
GEELONG SUBURBS IN LINE FOR BIGGEST SAVINGS
| Suburb | Median sale price | Current mortgage repayments | Decrease in monthly repayments (for one interest rate cut) | Decrease in monthly repayments (for two interest rate cuts) | Decrease in monthly repayments (three interest rate cuts) | Decrease in monthly repayments (for four interest rate cuts) |
| Lorne | $1,620,000 | $7,990 | $210 | $430 | $640 | $860 |
| Jan Juc | $1,270,000 | $6,260 | $170 | $330 | $500 | $680 |
| Manifold Heights | $1,260,000 | $6,240 | $170 | $330 | $500 | $670 |
| Barwon Heads | $1,400,000 | $6,900 | $180 | $370 | $560 | $740 |
| Newtown | $1,200,000 | $5,920 | $160 | $320 | $480 | $640 |
| Point Lonsdale | $1,200,000 | $5,920 | $160 | $320 | $480 | $640 |
| Torquay | $1,180,000 | $5,820 | $150 | $310 | $470 | $630 |
| Anglesea | $1,460,000 | $7,190 | $190 | $380 | $580 | $780 |
| Fyansford | $980,000 | $4,810 | $130 | $260 | $390 | $520 |
| Ocean Grove | $960,000 | $4,760 | $130 | $250 | $380 | $510 |
| Teesdale | $980,000 | $4,830 | $130 | $260 | $390 | $520 |
| Apollo Bay | $900,000 | $4,440 | $120 | $240 | $360 | $480 |
| Geelong | $890,000 | $4,390 | $120 | $230 | $350 | $470 |
| Wandana Heights | $930,000 | $4,590 | $120 | $240 | $370 | $490 |
| Geelong West | $840,000 | $4,130 | $110 | $220 | $330 | $450 |
| Highton | $860,000 | $4,270 | $110 | $230 | $340 | $460 |
| Indented Head | $820,000 | $4,040 | $110 | $220 | $330 | $440 |
| Portarlington | $880,000 | $4,310 | $110 | $230 | $350 | $470 |
| Bannockburn | $780,000 | $3,850 | $100 | $210 | $310 | $410 |
| Drysdale | $730,000 | $3,590 | $100 | $190 | $290 | $390 |
| East Geelong | $770,000 | $3,800 | $100 | $200 | $310 | $410 |
| Lovely Banks | $760,000 | $3,750 | $100 | $200 | $300 | $400 |
| St Leonards | $730,000 | $3,580 | $100 | $190 | $290 | $390 |
| Waurn Ponds | $780,000 | $3,850 | $100 | $210 | $310 | $410 |
| Armstrong Creek | $660,000 | $3,230 | $90 | $170 | $260 | $350 |
| Bell Post Hill | $680,000 | $3,330 | $90 | $180 | $270 | $360 |
| Belmont | $700,000 | $3,480 | $90 | $190 | $280 | $370 |
| Clifton Springs | $670,000 | $3,310 | $90 | $180 | $270 | $360 |
| Curlewis | $650,000 | $3,210 | $90 | $170 | $260 | $350 |
| Grovedale | $670,000 | $3,290 | $90 | $180 | $260 | $350 |
| Hamlyn Heights | $690,000 | $3,400 | $90 | $180 | $270 | $370 |
| Herne Hill | $690,000 | $3,390 | $90 | $180 | $270 | $370 |
| Lara | $690,000 | $3,400 | $90 | $180 | $270 | $370 |
| Leopold | $660,000 | $3,280 | $90 | $180 | $260 | $350 |
| Mount Duneed | $710,000 | $3,490 | $90 | $190 | $280 | $380 |
| Winchelsea | $680,000 | $3,350 | $90 | $180 | $270 | $360 |
| Bell Park | $610,000 | $3,020 | $80 | $160 | $240 | $330 |
| Charlemont | $610,000 | $3,010 | $80 | $160 | $240 | $320 |
| Marshall | $620,000 | $3,080 | $80 | $160 | $250 | $330 |
| North Geelong | $620,000 | $3,060 | $80 | $160 | $250 | $330 |
| St Albans Park | $580,000 | $2,880 | $80 | $150 | $230 | $310 |
| Newcomb | $560,000 | $2,770 | $70 | $150 | $220 | $300 |
| Thomson | $520,000 | $2,560 | $70 | $140 | $210 | $280 |
| Whittington | $520,000 | $2,560 | $70 | $140 | $210 | $280 |
| Corio | $480,000 | $2,390 | $60 | $130 | $190 | $260 |
| Norlane | $460,000 | $2,270 | $60 | $120 | $180 | $240 |
Source: PropTrack. Mortgage repayments calculated for a recent buyer of a median-priced house, with a 20% deposit, for a 30-year mortgage with an average interest rate for new mortgages.
Originally published as Interest rate cuts: Geelong’s biggest winner suburbs to save hundreds a month