The Reserve Bank today confirmed new rules tightening restrictions on bank lending to residential property buyers throughout New Zealand.

It's the Bank's response to public consultation.

Residential property investors will generally need a 40 percent deposit for a mortgage loan, and owner-occupiers 20 percent..

In both cases, banks are still allowed to make a small number of loans to borrowers with lower deposits.

The new rules take effect from next month, but most banks have chosen to start following the new limits already.