First home buyers could be the winners - after consultation on a Reserve Bank proposal

The central bank is suggesting easing loan to value restrictions from December.

Finance Minister Nicola Willis says relaxing restrictions on how much banks can lend, will make home ownership more achievable.

Banking Association Chief Executive, Roger Beaumont, says it's right at a time of softer prices and declining interest rates.

He thinks it will give first home buyers with low deposits a bit more market flexibility.