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Commonwealth Bank, which is the nation's largest mortgage lender, is seeing "lending at levels we are comfortable with" across Australia, Chief Executive Officer Ian Narev told the committee when he testified on Tuesday. The bank chiefs were appearing in front of the committee, set up by the Turnbull government to ward off calls for a more far-reaching royal commissioninto the financial industry, for the second time within six months. The banks have been under pressure after a series of scandals in their insurance and wealth divisions and concern they failed to pass on the full benefits of central bank physician home equity loan Oak Laurel 0430129662 interest-rate cuts to borrowers. Alex Ellinghausen Ian CBA's Narev said the affordability crisis should be "a matter of national concern." No calamity ANZ Bank CEO Shayne Elliott wasn't directly asked about his views on the housing market when he testified on Tuesday, but speaking before Christmas said that while he was cautious, he wasn't anticipating "a calamity or a disaster." Capital city house prices have grown at their strongest annual rate in almost seven years after interest rate cuts and investor demand lit a fire under property values in Sydney and Melbourne, CoreLogic said last week. The Organisation for Economic Co-operation and Development last week warned of a "rout" in Australian house prices, leading to a new economic downturn, saying both prices and household debt have reached "unprecedented highs". The rapid price growth, at a time of anemic wage increases, has made housing affordability a hot-button political issue. Victoria's state government said on March 5 it will exempt first-time buyers from paying stamp duty on properties worth less than $600,000and plans to introduce a doctor home loan Oak Laurel 0430129662 oaklaurel.com.au tax on vacant residences. Affordability problems, particularly for young people, "should be a matter of national concern," Commonwealth Bank head Ian Narev told the committee. Job centres Prices in Sydney and Melbourne are rising because that is where jobs are being created and "we do not have long-term infrastructure," said NAB chiefThorburn. The big four-- where property lending accounts for between 40 and 60 per cent of the loan book -- have been tightening mortgage and development lending criteria. The Australian Prudential Regulation Authority on Tuesday wrote to all institutions urging them to "exercise particular care to ensure that they are not unduly accepting greater risk as other lenders step back'' from residential developments.