Some 95 per cent of the extra credit extended by banks since mid-2012 has financed residential or commercial property, according to an analysis that highlights the lopsided nature of the post-mining boom economic transition.

In slashing interest rates to record lows, the Reserve Bank is trying to encourage borrowing and spending by households, while stimulating non-mining investment.

Low interest rates have helped to funnel tens of billions of dollars in debt into property. Credit:Glenn Hunt

The central bank hopes this will help cushion Australia from a sharp fall in resources spending that will hit the economy in coming years.

However, analysis of official figures by UBS shows almost all the net credit growth since 2012 has flowed into property, as opposed to new productive plant or equipment.