New lending restrictions from the Reserve Bank will require almost all residential property investors to have deposits of more than 40 per cent.

One of New Zealand's largest banks is to halt lending to property investors who don't have significant deposits, amid research that new restrictions could put off many property investors.

On Tuesday the Reserve Bank announced plans to restrict banks to having only 5 per cent of loans to property investors to borrowers with a deposit of less than 40 per cent.

It is the latest in a series of loan to value restrictions (LVR) from the central bank, which also regulates the banking sector.

The rules will come into force in just six weeks.

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Westpac said in a statement that from 4:30pm on Wednesday "we will not take new loan applications, beyond the revised 60 per cent LVR restriction".

Westpac said the Reserve Bank had laid out "clear timelines" for the new restrictions.

"There is a shorter transition period allowed for banks to meet the[Reserve Bank's] requirements than in 2013 and 2015 when there was a six month period to make all the necessary adjustments and comply."

The halt came as Horizon released results of a survey, taken before the Reserve Bank's announcement, showing 22 per cent of property investors would be put off if they were required to have a deposit of more than 30 per cent. In Auckland, the added restriction would put off 29 per cent of those who said they were "definitely" looking to buy a house.

Since last year the Reserve Bank has placed restrictions on Auckland property investors, but has not had specific restrictions elsewhere.

The Horison research said deposits of more than 30 per cent would prompt 21 per cent of investors to delay buying houses, while for 34 per cent it would make no difference.

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