The chief executive of Australia’s largest bank has raised a red flag on the housing market, warning that demand for home loans is running too high and may be contributing to elevated property prices.

At a parliamentary committee hearing, Matt Comyn of the Commonwealth Bank of Australia said that although his institution benefits from the surge in housing credit, a lower rate of growth would be preferable for long-term financial stability, equality and access to housing.

Comyn told lawmakers that ‘‘a more sustainable credit growth rate in housing would be slightly below the current level’’ and that ‘‘we benefit as an institution where housing credit is higher,’’ while cautioning that the current trajectory ‘‘is probably pushing a higher level than perhaps policymakers and regulators might ultimately be comfortable with.’’ Data cited show that new loan commitments for dwellings rose 6.4 % in the third quarter compared to the second quarter, and the bank’s mortgage book grew by 6 % to A$664.7 billion in the 12 months to June 30. Housing credit growth has surpassed the post-global financial crisis average, largely driven by investor loans responding to lower interest-rate expectations.

Comyn also signalled that the bank expects demand to moderate, noting ‘‘there is much less confidence that rates will be reducing anytime soon’’ and forecasting that the cash rate, currently 3.6 %, is ‘‘more likely than not’’ to remain unchanged through 2026 because inflation remains too high.

The remarks come amid broader concerns among regulators about the build-up of risks in the housing market and the effect of strong credit growth on affordability and home ownership access.

The bank’s warning reflects the tension between lending growth, institutional profitability and systemic risk.

While increased lending sharpens earnings for lenders like Commonwealth Bank, it may also exacerbate asset inflation, increase debt-service burdens and widen the divide between owners and potential entrants to the property market.

Comyn’s emphasis on ‘‘equality and access’’ signals that the bank is placing a broader social lens on the credit cycle rather than simply pursuing volume.

As Australia’s housing system grapples with high prices, constrained supply and high migration, the message from one of its largest lenders may prompt both regulators and policymakers to reassess their calibration of credit growth, capital buffers and housing-market levers.

The suggestion that current growth may exceed regulators’ comfort zone hints at possible policy or supervisory intervention ahead.

Comyn emphasised that while his bank remains profitable and is growing, it believes the lending ecosystem should grow at a pace that sustains access and stability rather than fueling further escalation in asset values.

The coming quarters will test whether his caution becomes reflected in slower loan growth or tighter lending settings.