Prime Minister Bill English has hinted that the Reserve Bank should consider removing restrictions on mortgage lending.
English said today that there had been a "correction" in the New Zealand housing market, and that "raised the question of how long [the restrictions] would be there for".
"It's important that the people who put them in place have thought through the conditions under which they removed the LVRs.
"Because ideally, they are not a permanent feature of the market."
He said that the loan-to-value (LVR) rules, which restrict how much can be leant to people with a deposit of less than 20 per cent, were a matter for the Reserve Bank.