New Zealand's new home loans rose 5.7% to NZ$6.55 billion in September from NZ$6.19 billion in August and jumped past 26% from NZ$5.19 billion in the same month last year, according to a Wednesday report by the Reserve Bank of New Zealand.

In terms of debt to ratio (DTI), expressed as total yearly household income minus total debt, loans with more than five times the debt to ratio made up 27.8% of the housing loans made during the month.

The value of new loans with a DTI multiplier of three slid to NZ$121 million from NZ$129 million in August, while those with a multiplier of three to four rose to NZ$429 million from NZ$389 million.

Loans with a DTI multiplier of four to five rose to NZ$578 from NZ$542 month on month, making up the bulk of the breakdown. Loans with DTI multiplier of five to six rose to NZ$219 million from NZ$182 million, while those with a multiplier of six to seven rose to NZ$22 million from NZ$16 million.

Loans with a DTI multiplier of seven, excluding unknowns, rose to NZ$7 million from NZ$4 million.

The central bank has said that banks need to comply with a DTI rule by July 1, which limits owner-occupier home loans with a DTI multiplier of six to 20% of the total home loans and 20% of owner-occupier home loans with a DTI multiplier of seven.

The limit is on top of current loan-to-value ratios (LVR) for properties currently being implemented by banks.