Reserve Bank Governor Michele Bullock was spotted departing her $4 million Sydney residence mere hours after announcing an increase in interest rates that affects mortgage holders nationwide.
Real estate records reveal that Bullock purchased her family home in the suburb of Five Dock back in April 1991 for $285,000. At that time, buying property in Sydney’s inner west was significantly more affordable, although interest rates were at historically high levels.
During that period, the standard variable mortgage rate hovered around 11.5%, having decreased from a peak of 17.5% in January 1990 under the Hawke administration.
Benefiting from her position at the Reserve Bank, Bullock was entitled to a concessional staff mortgage, offering her an interest rate approximately half of the standard rate. This advantage considerably lowered her loan servicing costs.
By the year 2000, the mortgage was fully paid off. Property analytics firm Cotality now estimates the home’s value at up to $4 million.
Over the past 30 years, the dramatic increase in the property’s value mirrors Australia’s prolonged housing boom. This surge has exacerbated the disparity between long-standing homeowners and younger Australians who face challenges entering the real estate market.
Her declaration of interests also shows she and her husband own two investment properties, located in Drummoyne and Chiswick.
The two-bed Drummoyne apartment was purchased in March 2012 for $670,000 and could now be worth as much as $1.45 million.
Michele Bullock (pictured) on Tuesday reversed one of the only three rate cuts Australia had last year following 13 rate hikes seen in 2022 and 2023
An owner-occupier with a $600,000 mortgage and 25 years remaining would see their minimum monthly repayments rise by $90 as a result of Bullock’s decision
Bullock’s Drummoyne apartment (pictured) was purchased in March 2012 for $670,000 and could now be worth as much as $1.45million
The second investment property in Russell Lea was purchased in a twin sale in November 2007 for $522,000. Eighteen years after the apartment was last sold, it is now worth an estimated $1.17 million.
The RBA’s decision to lift the cash rate by 0.25 percentage points to 3.85 per cent will drive up repayments for households already buckling under inflation, high borrowing costs and rising living expenses.
According to analysis by Canstar, an owner-occupier with a $600,000 mortgage and 25 years remaining would see their monthly repayments rise by about $90 if banks pass the increase on in full.
For borrowers with a $1 million loan, repayments would increase by about $150 a month.
The Reserve Bank has repeatedly argued higher interest rates are necessary to return inflation to its target band, even as mortgage stress rises and consumer spending slows.
Since becoming governor in September 2023, Bullock has acknowledged the strain higher rates place on households but maintained controlling inflation remains the central bank’s primary responsibility.
‘I do understand that for mortgage holders, this isn’t a great outcome,’ she said on Tuesday after announcing the increase.
‘What’s also not great for them or for anyone else is if inflation remains elevated because every time they go to the shop, every time they go to buy their groceries, every time they go to get personal services, medical, if inflation is high, that’s going to keep going up.’
Join the debate
Is it fair for leaders making tough calls on rates to benefit from perks and a soaring property market?
Bullock is a veteran of the Reserve Bank. Above, she is seen in December 2010 after she was appointed assistant governor of the currency division
Treasurer Jim Chalmers said the decisoin would be tough for many households.
‘Now, this will be difficult news for millions of Australians with a mortgage and we understand the pressure that this puts on Australian families and businesses. While today’s decision was widely expected, obviously that doesn’t make it any easier,’ he said on Tuesday.
Chalmers rejected claims from the Opposition and some economists who argued that government spending had helped drive inflation higher.
‘The statement released by the independent Reserve Bank explaining the decision that they’ve taken today does not mention government spending at all. In fact, it makes it very clear that pressure on inflation is coming from private demand,’ he said.
‘Growth in private demand has strengthened substantially, more This is the point that the Reserve Bank has made today. Pressure on inflation, the big contribution to the growth in our economy, is from private demand and not public demand.’
AMP chief economist Shane Oliver said the decision was a ‘very close call’, arguing the central bank could have held rates steady.
‘The decision means that the RBA has already reversed one of the only three rate cuts we saw last year, which of course followed 13 rate hikes seen in 2022 and 2023,’ he said.
‘Once passed on to mortgage holders it will leave mortgage rates around levels prevailing 13 years ago.’
Mr Oliver said the Reserve Bank had signalled it would remain data‑dependent, with March‑quarter inflation figures, due in late April, likely to be pivotal ahead of the May board meeting.
Housing affordability has worsened sharply since the early 1990s.
Median house prices in Sydney and Melbourne now sit at multiples of average household incomes, while the deposit required of first‑home buyers far exceeds what was needed when Bullock entered the market.
Unlike today’s borrowers, many Australians who bought homes in the early 1990s benefited not only from falling interest rates over time, but also from strong wage growth and decades of capital gains.
For current mortgage holders, the latest rate rise means higher repayments with little immediate prospect of relief.
For aspiring buyers, the gap between incomes and house prices continues to widen.
Cotality head of research Gerard Burg said national dwelling values have increased 9 per cent since the Reserve Bank’s easing cycle began in February 2025, adding roughly $75,000 to the median home value.
‘This rate hike is likely to reduce some of the demand side pressure,’ he said.
‘The hike will reduce the borrowing capacity of buyers, with a median income household in Australia losing around $18,000 from their mortgage limit.
‘This could push an increasing number of buyers from mid -tier properties to lower quartile ones, leading to higher demand on the urban fringes and regional markets close to capital cities.’
