The new loan restrictions announced by the Reserve Bank means some first home buyers with less than 20% deposit will miss out as the banks decide which customers they want.

Those in the 'poor middle-class' would miss out to those people who had high incomes and secure jobs reports the New Zealand Herald

However, there may be ways of getting around the restrictions by using second tier lenders, who are not banks and are therefore outside the new regulations.  These lenders will do LVR (low value ratio) lending, offering second mortgages to first home buyers.

This makes the policy a nonsense says the Professional Advisors Association.