One of NSW's highest-paid vice-chancellors is charging his university to hold events at his Sydney CBD property, which he bought using a loan from the university.

Macquarie University vice-chancellor Bruce Dowton drew an $875,000 loan from the university in 2014, which remains fully drawn, with annual interest repayments of between $23,000 and $28,000.

Macquarie University paid $222,000 for use of its vice-chancellor's home between 2014 and 2018. Credit:Wolter Peeters

However, Professor Dowton has been charging the university between $43,000 and $48,000 annually to use the property, raising concerns about the financial expedience of the arrangement, especially at a time when the university has warned of budget cuts and potential redundancies.

The university has paid Professor Dowton a total of $222,000 for the use of his home between 2014 and 2018, while interest payments on the loan issued by the university totalled $129,000 over the same period.