The central bank boss is keeping a close watch on lending standards and the rapid rise in house prices.
Reserve Bank governor Glenn Stevens told a conference in Sydney on Thursday that he's concerned about the rapid rise in loans to people investing in the housing sector.
The RBA says that investors are pushing up prices and shutting owner occupiers and first-home buyers out of the market.
"The key points here are that we are keeping a close eye on the buildup of credit to investors in the housing market," Mr Stevens said.
"Lending standards are things that need to be carefully watched in a time when house prices are rising quickly and competition from lenders are increasing."
The RBA and the Australian Prudential Regulation Authority (APRA) are getting ready to use rules and regulations rather than interest rates to restrict that lending.
"Those discussions are continuing and when there is something to be said it will be said, all in good time," Mr Stevens said.
The RBA, in early October, said it hopes the details of the reforms will be released by the end of 2014.
It wants lending standards toughened to slow the rapid housing price rises in Sydney and Melbourne.
Dwelling investment rose by more than eight per cent in 2013/14 and housing prices rose 10 per cent.
Leading the charge was Sydney, with prices up 15.6 per cent, while Melbourne had a 9.3 per cent gain.
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