Prime Minister John Key says it is his guess that the Reserve Bank will go ahead with restrictions on low deposit loans.
The central bank is considering whether it should restrict how much trading banks can loan to home buyers, known as the loan-to-value ratio.
Mr Key said on Tuesday he believes the Reserve Bank will go ahead with the changes, as the alternative is raising interest rates.
He said helping first-home buyers is a priority for the Government, but the housing market in Auckland can't be left unchecked.
However, Labour leader David Shearer said Mr Key must be kidding when he says first-home buyers are a priority, as introducing new loan limits would make it harder to save for a deposit.