In a bid to prevent Australia's housing market from overheating, the Australian Prudential Regulation Authority may take measures to reduce growth in the lucrative home loan business, bank investors have been warned.

APRA wants to cap growth in loans to residential property investors at 10 per cent a year. In December, APRA announced it was carrying out a detailed review of home lending, and has warned after banks they will face tougher capital requirements if they expand their investor loan books at more than 10 per cent a year.

Morgan Stanley analyst Richard Wiles has told clients APRA may take extra measures to slow growth including lowering the 10 per cent threshold, enforcing a further tightening in lending standards, or increased capital requirements, reports The Australian Financial Review. Macquarie analyst Mike Wiblin also highlighted the range of "macroprudential" options open to APRA and how they would affect each bank.

Meanwhile, the National Mortgage Brokers' annual conference on the Gold Coast last week heard that mortgage comparison sites and the entrance of new players into the mortgage market could prove a risk to brokers.