Growth in Kiwibank's mortgage book has recovered from the low point it reached in the March quarter, with a net $235 million in new mortgages written in the three months to the end of June.
Kiwibank's June quarter disclosure statement shows its mortgage book stood at $12.5 billion.
Nearly 93% of the growth in the mortgage book came from the safest part of the market, lending to those with more than a 20% deposit.
Kiwibank's riskiest lending, to those with less than a 10% deposit, fell by $7 million, for the second quarter running lending in this category has declined.
Radio New Zealand's business editor said Kiwibank seems to have adopted an abrupt change in strategy from the December quarter - in that quarter, the safest part of its book shrank by $50 million.
While its overall mortgage book grew by $273 million in the three months ended December, Kiwibank's lending to those with less than a 20% deposit jumped $323 million.
From 1 December, all banks will have to restrict lending to those with less than a 20% deposit to just 10% of net new lending.
Lending under the Government-guaranteed Welcome Home Loans scheme is exempt - such loans accounted for 21% of Kiwibank's total lending to those with skinny deposits at 30 June.