KiwiSaver Withdrawal for First Home Buyers

KiwiSaver Withdrawal for First Home Buyers

KiwiSaver Withdrawal is an initiative to help first home buyers with the deposit for their first home. If you have been a member of KiwiSaver for at least three years, you may be eligible to withdraw from your fund to use as a deposit towards the purchase of your first home.

So, who is eligible, what can you get and how do you apply?

Eligibility for KiwiSaver Withdrawal

  • a member of a complying fund

  • have been a member of KiwiSaver for at least three years contributing the minimum required

  • intend to live in the property. (It cannot be used to buy an investment property.)

What can you get?

  • You can withdraw all contributions including member’s tax credits can be withdrawn (with the exception of the Government $1,000 kick-start).

  • Effective 1 April 2015 and onwards your KiwiSaver withdrawal may include:

    • your members contributions

    • any employer contributions (voluntary and compulsory)

    • any returns on investment(s) received

    • any member tax credits.

How do you Apply?

  • The withdrawal is administered by your KiwiSaver scheme provider or relevant complying fund managers and if approved the payments of the funds will be paid to your solicitor on or before settlement day.

NOTES

  • Kāinga Ora does not manage the KiwiSaver Withdrawal contact your KiwiSaver scheme provider.

  • The Kiwisaver Withdrawal feature is separate from the First Home Grant. Eligibility for withdrawal has fewer criteria than that of the First Home Grant. ie Property value caps and income caps do not apply to the withdrawal feature, so whilst you may not be eligible for a grant you can still be eligible for the withdrawal.

Learn more about how to optimise your KiwiSaver at our page on Everything you need to know about using your KiwiSaver savings to buy your first home.

First Home Loan

Kainga Ora run a scheme to assist First Home Buyers called the First Home Loan.

How it works

First Home Loans are available via selected Banks and Kainga Ora underwrites the loans that would normally not get approved due to it being outside their lending standards.

First Home Loan Criteria

  • You need a 5% deposit – your deposit cannot be borrowed.

  • Be a first home buyer or be in a similar position to a first home buyer.

  • Meet the special lending criteria of the participating Bank.

  • Meet the income and house price caps as follows.

Income Limits

  • $95,000 for 1 buyer,

  • $150,000 for 1 buyer with 1 or more dependents,

  •  $150,000 for 2 or more buyers

Property Value Limits

As of May 2022, there are no longer property price caps throughout all of New Zealand.

Other Conditions

  • You must live in the property

  • Must be a standard residential property

  • You cannot own any other property

  • Applicants must be New Zealand Citizens or Permanent New Zealand Residents (holding a ‘Permanent Resident Visa’)

  • a $400 application applies – can often be added to loan

  • a 0.5% Low equity fee applies – can often be added to loan

First Home Loans are only available from some lenders.

The First Home Buyers Club can assist you with a pre-approval for a First Home Loan.

For help getting a First Home Loan, please complete the below form.