Kiwibank's mortgage lending remained steady in the September quarter, but nearly 15% of it went to borrowers putting up only small deposits.
That's above the 10% limit on those kinds of loans which the Reserve Bank introduced at the beginning of last month, though the Government-owned Kiwibank does have a six-month grace period to bring it in line with the new rules.
Kiwibank says it's well on track towards meeting the Reserve Bank's restrictions and it won't be commenting further.
Photo: RNZ
Kiwibank's mortgage book grew by $234 million in the three months ended September, with $200 million of that lent to people with deposits of 20% or more.
Only $4 million was lent to people with deposits between 10% and 20%, and $30 million to people with less than a 10% deposit - that doesn't include any increase in Welcome Home Loans which are exempt from the new rules.
Kiwibank had $23 million in pre-approved mortgages for those with a deposit of less than 20% , which hadn't been drawn down at the end of September.
Its mortgage book now totals $12.7 billion dollars.
Kiwibank's profit fell more than 13% to $26 million in the quarter, mainly because its operating expenses rose 11% while operating profit remained flat.
