The news isn't all bad for prospective first home buyers. 

The Reserve Bank has confirmed major changes to mortgage rules from July, which will prevent most owner-occupiers from borrowing more than six times their pre-tax income. 

It's also signalling it will keep the Official Cash Rate unchanged at 5.5% for the rest of the year. 

Key Mortgages broker Jeremy Andrews told Mike Hosking that at the same time, the Reserve Bank is loosening LVR restrictions to allow for more low-deposit lending. 

He says the changes could actually help many first home buyers. 

LISTEN ABOVE 

• Debt-to-income ratios deemed necessary to protect buyers - RBNZ
• Debt to income restrictions will be here by July - Reserve Bank