Reserve Bank Governor Philip Lowe pays off his mortgage

Reserve Bank Governor Philip Lowe pays off his mortgage

Reserve Bank Governor Philip Lowe has paid off his mortgage on his family home, in Sydney’s east, at half the interest rate that everyday Australians paid.

Dr Lowe purchased the property in April 1997 for $1,075,000 and partly financed with a $241,000 loan from the RBA at a discounted interest rate.

He raised the cash rate for the 10th consecutive month on Tuesday to 3.6 per cent.

Dr Lowe’s previous home in Bondi Junction sold for $481,000 in June 1997, and his wife, Jocelyn Parker’s home in Paddington, sold for $430,000 in September 1996.

The couple likely used the proceeds from the sale of these properties to afford a small deposit on their current home.

The RBA has confirmed that both loans were paid off several years ago, and Dr Lowe and his wife are now mortgage-free.

In the 2022 financial year, Dr Lowe earned $890,252 in base salary, $8,870 in perks and allowances, and $115,171 in superannuation.

The RBA employee scheme that provided the discounted loan rate for Dr Lowe ended in 2001, and only 11 staff members continue to receive benefits.

Dr Lowe and his wife have no investment properties, but Ms Parker has an estate trust, and Dr Lowe holds Telstra shares and exchange-traded funds.

Both have credit cards and managed funds, and their superannuation is with Sunsuper.

Dr Lowe grew up in Wagga Wagga, the eldest of five children. He received a scholarship from the RBA to attend the University of NSW and graduated with first-class honours and a University Medal in 1985.

After working at the bank full-time, he obtained a PhD in economics from MIT in 1991.

He became deputy governor in 2012, earning around $700,000 annually, before being named governor in 2016.

Dr Lowe recently raised the cash rate to an 11-year high of 3.6 per cent, resulting in variable rate borrowers experiencing a 46 per cent increase in monthly repayments in 10 months.

However, Dr Lowe suggested that the recent rate hikes have moved monetary policy into the restrictive territory.

It may be appropriate to pause interest rate increases to assess the state of the economy.

Read More On The Topic On TDPel Media