Financial regulators considered a much lower cap on growth levels for loans for residential investment, before finally setting the cap at ten per cent in late 2014.Internal analysis prepared by the Reserve Bank of Australia show caps of 4.5 per cent, six per cent and seven per cent were all canvassed, with the ten per cent option not mentioned at all.The RBA published a series of background papers at its website under the Freedom of Information Act (and first published at its website in May 2015).At the time, lending growth in this segment was already ten per cent and at the extreme "an upper bound of eight per cent [is needed] to achieve some comfort about the leverage in this market," the RBA authors wrote.Note: article updated 16 April 2016 to make clear that this article was based on an eleven month old RBA FOI disclosure. The original article wrongly took the FOI disclosure to be fresh. Our apology to readers for that.