The Reserve Bank says it's proposed change in lending rules - because the housing market is changing.

It wants to let banks grant a larger percentage of its new lending, to borrowers with less of a deposit.

Reserve Bank Deputy Governor Christian Hawkesby says house prices have moderated to become more sustainable.

He says he expects the proposal will be attractive to banks.

"It is a very short consultation, and yes, we're expecting it to go through very straightforwardly."

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