Like the other major banks, Bank of New Zealand is dramatically reducing its lending to people with less than a 20 percent deposit while at the same time hugely growing safer lending.
Overall, BNZ's mortgage lending in the three months ended June rose by $485 million.
BNZ, which is owned by National Australia Bank, has reported in its latest quarterly disclosure statement that its mortgage lending to those with small deposits fell by $190 million.
However, its lending to those with a 20 percent deposit or more jumped by $675 million.
Since October last year, the Reserve Bank has limited each bank's new mortgage lending to people with small deposits to no more than 10 percent of total new lending.
Ahead of that new rule being announced, BNZ was one of the most vigorous mortgage lenders to people with small deposits.
In the June quarter of last year, lending to people with less than a 20 percent deposit accounted for 47 percent of BNZ's net new lending.
The statement shows BNZ's June quarter net profit fell 14 percent, largely because of higher charges for bad debts and lower fee income.
But its net profit for the nine months ended June rose 11.6 percent to $598 million.