WELLINGTON, Oct. 14 (Xinhua) -- The Reserve Bank of New Zealand (RBNZ) said Tuesday it will ease mortgage loan-to-value ratio (LVR) restrictions from Dec. 1, increasing banks' flexibility to lend and improving credit access for home buyers and investors.

RBNZ Acting Assistant Governor for Financial Stability Angus McGregor said the move follows last year's introduction of debt-to-income (DTI) limits, which have strengthened borrower resilience and reduced the need for tight LVR settings.

Under the new rules, the cap on owner-occupier lending with an LVR above 80 percent will rise to 25 percent from 20 percent, while the limit for property investors with an LVR above 70 percent will double to 10 percent.

House prices are within a sustainable range, mortgage growth is moderate, and the share of high-risk lending remains low, which are conditions that justify easing, McGregor said, adding that the RBNZ will consult with banks on implementing the changes over the next two weeks.

DTI restrictions will remain unchanged, he said.

Finance Minister Nicola Willis welcomed RBNZ's intention to relax restrictions on lending, saying it will "make it easier for Kiwis to get a foot on the property ladder." ■