Potential home buyers are unlikely to find it harder to get loans despite the raft of changes being recommended by the banking royal commission and other recent reforms.
Royal commissioner Kenneth Hayne in his report released on Monday accepted advice from the federal Treasury that there was little evidence recent tightening in credit standards had affected the overall availability of credit.
Rather there had been an improvement in the credit quality of marginal borrowers.
Treasurer Josh Frydenberg told reporters after the release of the report he did not think credit would suddenly dry up.
"In fact, what we're going to see as a result of this is consumers - whether they're home buyers, young or old - effectively dealing with financial institutions who are now having to reach a higher standard of conduct," he said.
"I think we're all beneficiaries from that."
He said the flow of credit was already below the 10-year average in Australia, with one of the factors being the royal commission.
But that uncertainty had now been lifted.
"I continue to make the point to our financial lenders and our banking sector - there is an economic and there is also a social responsibility to ensure affordable and accessible access to finance and that is critical to our economy."
The Australian Bankers Association's Anna Bligh said banks were getting the balance right in terms of lending.
"There is no doubt that you've got to get the balance right between looking after customers, making sure you don't lend them money they can't afford, but not being so tight that you end up restricting credit into households and into small business, and into the economy generally," she said.
Property Council chief Ken Morrison said it was important not to "break the economy" as policy makers seek to fix the banks.
Mr Morrison noted the changes proposed for the mortgage broking industry which could impact on the residential property industry.
"Mortgage brokers account for more than half of all home loans settled, and are a vitally important source of advice and access to competitive finance for Australian property buyers," Mr Morrison said.
"The abolition of trail commissions and the proposed shift in future to a 'borrower pays' model for broker commissions will need to be very carefully managed so that the objective of better outcomes for consumers is achieved without making it harder for qualified borrowers to find and secure competitive finance for property purchases."
