The Reserve Bank is reviewing its home loan restrictions

It could be easing the Loan to Valuer Ratio imposed to cool the housing market.

Deputy Reserve Bank Governor Geoff Bascand has made a speech to the UBS Australasia Conference in Sydney.

The Financial Stability Report will be released at the end of the month and he says the bank's reassessing the need for restrictions.

Bascand says debt levels are high but not deteriorating, and bank lending standards have tightened significantly.

He says if credit growth and house prices remain stable, they expect to gradually ease restrictions in coming years.