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Buying your first home is a huge milestone, and your KiwiSaver can be a powerful ally in making it happen. But using it wisely and recovering after the purchase takes a bit of strategy. Whether you're just starting to plan or already house-hunting, here are my 10 top tips to help you make the most of your KiwiSaver journey.
My tip: Three things to talk to your mortgage adviser about are:
1. Kāinga Ora's First Home Loan only requires a 5% deposit, so determine with your mortgage adviser if you qualify.
2. You may not be able to use KiwiSaver funds for auction deposits unless the provider allows early release with conditions. Check with your adviser!
3. If you’ve owned property before but no longer do, you may still qualify as a “previous homeowner” through Kāinga Ora’s determination process. Again, ask your adviser.
The more you contribute, the more you can withdraw. Boost your regular contributions or make voluntary lump sums if you're planning to buy in the next few years.
Even a small increase (e.g. from 3% to 4%) can add thousands over time.
My tip: Increase your rate after a pay rise so you won’t feel the pinch.
If you're planning to buy within the next 1–2 years, consider switching to a conservative fund to reduce the risk of market dips affecting your balance.
Growth funds are great long-term, but risky short-term. Conservative funds invest in cash and bonds, offering more stability.
My tip: Talk to your adviser about timing the switch, ideally 12–18 months before you plan to withdraw your deposit. Time in the market may matter, so talk to your adviser.
Your Prescribed Investor Rate (PIR) determines how much tax you pay on KiwiSaver earnings. From 1 April 2025, the PIR bands have changed:
My tip: Review your PIR annually or after any income change with your adviser. Overpaying tax = lost returns!
KiwiSaver withdrawals can take 10+ working days and are paid to your lawyer’s trust account.
My tip: Apply early! Coordinate with your lawyer and adviser to avoid settlement delays.
Once you’ve bought your home, it’s time to rebuild your KiwiSaver for retirement.
Increase your contribution rate or set up auto-voluntary payments. Even $20/month adds up over time.
Got a payrise, or a sudden windfall? Consider setting aside a portion into your KiwiSaver.
My tip: To motivate yourself, use retirement calculators to set new goals and track progress, your financial adviser can assist with this.
Got a side hustle or bonus? You can make extra lump-sum payments into your KiwiSaver anytime.
Especially useful if you're self-employed or want to rebuild faster.
My tip: You can contribute directly via your provider or through Inland Revenue. Your financial adviser can give you details of all the options.
To get the full amount, contribute $1,042.88 by 30 June each year.
If you earn over $180,000, you're no longer eligible for the government match.
Now that your goal has shifted to retirement, consider switching back to a growth fund.
Growth funds typically perform better over decades due to higher equity exposure.
Look into Socially Responsible Funds, they may be doing better than standard funds. You can read my article on ethical investing here.
My tip: Review your risk tolerance and retirement timeline with your financial adviser.
It’s not “set and forget”! Review your account annually with your financial adviser.
Your adviser can help with retirement projections and strategy planning.
My tip: Treat your KiwiSaver like an investment portfolio, because it is!
Many first home buyers don’t realise how helpful a mortgage adviser can be:
My tip: Involve your adviser early, before you start house hunting
At Velocity we believe that KiwiSaver is the foundation for future financial confidence and first-home success, and we can help you get set up for life. Our team can assist with tailored fund selection, contribution planning, and tax guidance. Our free KiwiSaver consults ensure you can maximise government and employer contributions, giving the best start from day dot.
Start small, build smart!
Your KiwiSaver is more than just a retirement fund, it’s a stepping stone to your first home and beyond. With smart tweaks and a little planning, you can unlock its full potential and bounce back stronger after your big purchase.
Giovana
About Giovana
Hola, I’m Giovana, a Client Services Manager and Financial Adviser at Velocity. With 12 years in the industry, I’m passionate about delivering excellent customer service and smooth processes. Outside work, I’m a mum of two girls and love dancing—especially Peruvian cultural dances.
Disclaimer
Giovana Paulin (FSP1007277) is a Financial Adviser with Velocity Financial (FSP95466). No financial decision should be made based on this blog alone. Please see our disclosure statement on our website.
Always Get Professional Advice
This post is a general guide. For important financial decisions, seek independent advice tailored to your situation. Talk to a financial adviser, lawyer, and accountant—they’ll help you find the best solution.
Visit our website for more on our advisory services and disclosures:👉 https://www.velocityfinancial.co.nz/disclosure-statement