It might soon be harder to get a mortgage, as the government has given the Reserve Bank approval to tighten loan-to-value ratios and move to bring in debt-to-income ratios.
The Finance Minister Grant Robertson says the central bank will start consulting on reducing low deposit lending by banks to no more than 10 percent of their total lending from the current 20 percent.
The government has also given the Reserve Bank approval for debt-to-income ratios or interest rate floors, to ensure borrowers can afford to service mortgages.
However, there are fears this will make it even harder for first home buyers.
First Home Buyers Club spokesperson Lesley Harris spoke to Susie Ferguson.
