Using KiwiSaver for your First Home Purchase
fIRST HOME WITHDRAWAL
This can only be used for an Owner-Occupied First Home (not for an investment property) If you have owned a home before, in some circumstances you may still be eligible to withdraw your savings. Your scheme provider may require you to contact Housing New Zealand to determine if you’re in the same financial position as a first home buyer. You can withdraw your contributions, your Employer’s contributions and any investment returns. You cannot take out the Government $1000 kick start (as a guide, take your current balance less $1,000) Eligible KiwiSaver members will be able to withdraw their available savings to contribute towards the initial deposit of their first home purchase (as opposed to previously only being able to utlise their savings at settlement by ensuring funds pass through a solicitor’s or conveyancing practioner’s trust account, with an undertaking now required that the funds will be returned to the KiwiSaver provider if the sale does not proceed). It can take a number of weeks, so check timeframes with your provider and allow enough time
After 3 years of contributing to KiwiSaver, you may be entitled to a KiwiSaver HomeStart grant. The grants are administered by Housing New Zealand and will be paid to your solicitor.
For purchasing an existing home, the grant is between $3,000 and $5,000 based on $1,000 each year of KiwiSaver membership. For building or purchasing a new home, or for purchasing land to build a new home on, the grant is (in effect doubled to) $2,000 per year of membership in the scheme, up to a maximum of $10,000 for five years for each member. The home can be up to 6 months old. There are maximum values of grants payable for the purchase of a single dwelling, regardless of the number of eligible purchasers:
$10,000 for the purchase of an older property
$20,000 for the purchase of a new property
Note: If you’ve owned a home before, in some circumstances you may still be eligible for a HomeStart grant. Housing New Zealand will need to determine that you are in the same financial position as a first home buyer. To find out more, visit the Housing New Zealand website or call them on 0508 935 266.