Changes to lending restrictions are on the cards.

Finance Minister Nicola Willis is welcoming the Reserve Bank consulting with banks on easing loan to value restrictions from December.

The central bank's looking at increasing the new lending limit for first-home buyers and property investors.

Banking Association CEO Roger Beaumont says this is really good - and will give first-home buyers more flexibility.

"They're taking advantage of what I'd call the 'sweet spot' of softer house prices, combined with declining interest rates."

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