KiwiSaver is primarily for retirement savings. The other cool feature of the KiwiSaver system is that you can use your funds towards the deposit for your first home.
Contributing to your KiwiSaver is a great way to grow your deposit; between your employer, government, and your contributions and the return on investment, you will reach your deposit goal much faster than just using a traditional saving account. To access your funds, you apply through your KiwiSaver provider.
What are the eligibility criteria for withdrawing my KiwiSaver for a house deposit?
To qualify, you need to:
- Be a first-home buyer or be in an equivalent position.
- Have been in KiwiSaver for at least three years. However, you do not need to have been contributing for the entire period.
- Be a permanent resident of New Zealand.
- Purchase a property in New Zealand.
- Intend to live in the property for at least the first six months.
Can I qualify to withdraw my KiwiSaver If I’ve previously owned a property?
Possibly! You would need to be in the equivalent position as a first-home buyer. This means that as well as the standard criteria listed above, you need to:
- Not have previously withdrawn your KiwiSaver for a prior home purchase
- Not currently own any interest or share in any property (not including ownership of Māori land)
- Only have realisable assets of at most 20% of the house price cap for existing properties in the area you plan to buy in. Realisable assets include:
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- Savings
- Fixed and term deposits
- Shares, stocks and bonds
- Any money paid as a deposit on the property
- Individual assets valued over $5,000 (e.g. a boat, caravan etc.)
Kāinga Ora is the government agency that determines whether a previous homeowner qualifies as being in the same financial position as a first-home buyer. You apply through their website and then forward the confirmation letter to your KiwiSaver provider to support your application.
If I’m buying a house with a partner, can we both use our KiwiSaver?
If you both qualify, you can both withdraw from your individual KiwiSaver accounts for your deposit.
What if I qualify to withdraw from KiwiSaver, but my spouse doesn’t?
If you qualify, you can use your KiwiSaver whether or not your partner qualifies.
How much can I withdraw from my KiwiSaver for my first home?
You can usually withdraw most of your funds, but at least $1,000 must remain. If you have transferred superannuation from overseas, those contributions may also have to stay in KiwiSaver. It depends on the superannuation withdrawal rules of the original country.
Is there an income cap for the KiwiSaver first home withdrawal?
No; whether you earn $1 or $1,000,000, you can still be eligible to withdraw your KiwiSaver for your first home.
Are there are other ways KiwiSaver may help?
No. People often get the KiwiSaver and the First Home Grant scheme confused. The First Home Grants are managed by Kainga Ora and have specific criteria which includes your contributions to KiwiSaver.
We’re here to help!
As always, please get in touch for up-to-date information and advice specific to your situation. We can guide you through financing your first home and ensure you can access any support you may be eligible to receive, such as the First Home Grant or First Home Loan. When you’re ready, book a time online, call 029 973 7911 or email elise@bob.kiwi.nz.