Thanks to KiwiSaver, building a new home has become more affordable than ever! If you’ve been in KiwiSaver for at least three years and you meet the eligibility requirements, you may be able to withdraw some of your KiwiSaver to go towards building your first home.
You can withdraw everything in your account except $1,000 and money transferred into your KiwiSaver account from a complying Australian superannuation scheme.
Eligibility
To make a withdrawal:
- You need to have been in KiwiSaver or a complying superannuation fund for at least three years.
- You can’t have made a withdrawal from KiwiSaver to buy a home or land before.
- You must be a first-time buyer intending to live in the home or land you buy.
- The home or land needs to be in New Zealand.
- If you’ve previously owned a house, there are some circumstances where you might be able to make a KiwiSaver withdrawal to go towards a house purchase. You’ll need to contact Kāinga Ora, who will determine if you’re in the same financial position as a first-time buyer.
- If you’re planning on buying a house with a partner, if eligible you can both apply for a first home withdrawal.
Making a Withdrawal
The first step in the withdrawal process is getting an estimate of how much you’ll be able to withdraw. You’ll need this if you want to get conditional approval for a home loan. You’ll also need a letter from your KiwiSaver scheme provider confirming your eligibility to make a first home withdrawal.
It’s also important to seek advice on exactly how to go about withdrawing the funds. It can take up to 15 days to receive the funds, so it’s important you’re proactive. We can help you with this process.
What you can use the money for
As soon as you have a conditional sale and purchase agreement for your first home or land, you can apply to withdraw funds for the deposit. It’s important to note that you can use your KiwiSaver to go towards the purchase of a section, but not the build costs. Therefore make sure to begin this process before settling on a section, to ensure you don’t miss out.
Learn more: KiwiSaver First Home Withdrawal »
First Home Grant
If you’ve been making regular KiwiSaver contributions for at least three years, you may also be eligible for a First Home Grant (previously known as the KiwiSaver HomeStart grant). This is paid by the government and administered by Kāinga Ora.
- If you are buying an existing home, you could get $1,000 for each year you have been contributing to KiwiSaver – up to a maximum of $5,000.
- If you are buying a new home*, a proposed home off plans, or land to build a new home, you could get $2,000 for each year you have been contributing – up to a maximum of $10,000.
- You can also purchase your first home with your partner, family, or friends. If each of you qualify, this means you could get up to $10,000 each.
New Home Price Cap
To qualify for the First Home Grant, in Canterbury you can build a new home up to the value of $550,000.
To be eligible for a First Home Grant you must:
- Be aged over 18.
- Have earnt less than the income caps in the previous 12 months. This means you can’t have earnt more than $85,000 before tax (if you’re applying on your own), or more than a combined $130,000 before tax (if two or more buyers are applying).
- Not currently own any property.
- Have contributed at least 3% of your total income to your KiwiSaver account for at least three years.
- Purchase a property that falls within the regional price caps.
- Agree to live in the house for at least six months.
- Have a deposit that is at least 10% of the purchase price of the house or land you want to buy or build.
- Be buying an equal share if you are buying with other people.
Learn more: First Home Grant »