New figures from the Reserve Bank of New Zealand show bank lending on housing rose for the third consecutive month in July.
Lending secured on houses by banks is now 2.8% ahead of the same month a year ago.
Total outstanding loans on housing rose for the third consecutive month to $164.7 billion, up from $164.4 billion in June and $164.2 billion in May.
Loans to consumers, such as credit card debt and overdrafts, fell for the seventh month in a row.
Lending to farmers in July rose for the second consecutive month and is 16% higher than a year ago.