The Reserve Bank is working with other regulators to crack down on risky lending to housing investors amid concerns they are intensifying soaring property prices in Sydney and Melbourne. Australia's central bank is worried that the fast-growing rate at which banks are lending to investors is out of proportion with rental demand. This could have wider-ranging effects on the economy, the RBA warned in its twice-yearly Financial Stability Review. Scroll down for video House for sale on Chastleton Avenue in Toorak, Melbourne. The blue-chip suburb is a favourite among investors The Reserve Bank is working with other regulators to crack down on risky lending to housing investors amid concerns they are intensifying soaring property prices
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The central bank is cracking down on risky lending to property investors
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There are concerns investors are intensifying soaring property prices
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House prices rose 16 per cent in Sydney in August and 12 per cent in Melbourne in just one year
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Investors account for more than 40 per cent of all new home loans
Normally at this point in property cycle the @placeholder would raise interest rates, but it is reluctant to do so because the economy is 'a bit messy'.