After ASB backtracked on plans to enforce LVR restrictions on investor new builds, advisers say the big four lender and other banks have become more receptive to construction loans.
ASB is offering up to 85% LVR loans for all new builds, while the other big four banks are offering 90% for owner-occupied new builds, and 80% to investors building a home.
Anecdotal evidence suggests the banks are becoming more receptive as pressure mounts on policymakers to increase supply.
One adviser told TMM Online there had been "significant improvements from just two weeks ago" in the new build market, and believes lenders are under pressure from the RBNZ to grant more construction loans.
Elsewhere, Hamish Patel of Mortgages Online said tightened LVR settings had boosted new build activity.
"The Reserve Bank has motivated the banks to take on higher risk with new builds. Banks have become easier to deal with on new builds since the LVR restrictions were announced."
He said investors had begun to look more closely at developing properties as LVR restrictions bite.
"There is more activity from investors looking at this option to get around the 40% rule, which is a good thing. These rules are designed to increase supply [of houses] after all."
Patel said first home buyers were "a bit more hesitant on construction loans", "as they need more equity up their sleeve" to complete deals.
The rush for new build finance comes as consents rise in NZ.
In the December quarter, 11,291 homes were consented, with an annual figure of 39,420 new houses. Of those, 16,656 were built in Auckland.
Annual consents are expected to reach record highs last seen in the 1970s, according to Stats NZ.
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