The Reserve Bank's new mortgage lending restrictions come into force today, restricting the number of high loan-to-value ratio mortgages banks can lend.

Will new low deposit loan rules make it tougher for people to buy, grow and fund small business?

John Key has hit back at Labour over new Reserve Bank mortgage lending limits, saying home buyers are better off under National due to lower interest rates.

Prime Minister John Key says he is confident the property market will settle down, despite the Reserve Bank's new mortgage lending restrictions.

Up to 8000 families, couples and individuals trying to get into their first home will be stymied by the Reserve Bank's new lending restrictions, Finance Minister Bill English has acknowledged.

A Kiwibank mortgage manager has been reined in after wrongly telling a customer it was pulling low deposit pre-approvals.

Finance Minister Bill English says ASB Bank has "let down" customers by cancelling home loan approvals as a result of new lending restrictions.

ASB Bank has cancelled all pre-approvals for home loans over the 80 per cent loan to value ratio with effect from October 4.

The New Zealand sharemarket rallied by more than 1 per cent yesterday after US Federal Reserve chairman Ben Bernanke said he would maintain the country's stimulus programme.

Banks have already started tightening up their lending criteria for customers seeking low-deposit mortgages, despite new regulations not kicking in until next month.

The economy grew faster than expected in the second three months of the year, as engineering and architecture expansion offset drought impacts.

A surprise decision from the Federal Reserve has pushed Wall St up to new highs.