Prime Minister John Key has repeated his assurance that first home buyers will not be negatively affected by the Reserve Bank taking a tougher stance on home lending.
Under proposed changes, the central bank will require trading banks to increase their loan-to-value ratios, forcing home buyers to save larger deposits before borrowing money.
However, Mr Key says the change will ensure that first home buyers do not get shut out of the housing market.
He says he is sure the Reserve Bank can work with trading banks to ensure increasing loan-to-value ratios targets wealthy people buying their second and third properties, not first home buyers.