If you’re looking to buy your first home in the near future, KiwiSaver could help you get there quicker than expected...
If you've been a member of KiwiSaver for at least 3 years you may be able to use your KiwiSaver savings to help you buy your first property in New Zealand.
Building a home? The property can be either on bare land on which you intent to build your home or and existing home and land.
If you intend to purchase land that does not have a house on it, it is important to remember that you can only use your KiwiSaver funds to put towards the purchase of that land and not towards the future costs of building the house. This is because your KiwiSaver savings can only be used in connection with the purchase of your first property and, having already purchased the land, you would no longer meet this criteria.
How much can I use?
You must leave at least $1,000 in your KiwiSaver scheme account and you may only make one first home withdrawal (from either your current KiwiSaver scheme or from a KiwiSaver scheme to which you previously belonged).
What if you’ve already owned a home?
In some situations, if you have owned a property (including land) before, you may still be able to make a first home withdrawal if Housing New Zealand accepts that you are in the same financial position as would be expected if you have never owned a property in the past.
Check out the Housing NZ Website to find out more about the eligibility criteria.
KiwiSaver HomeStart grant
How does it work?
If you’re looking to buy or build your first home you could also be eligible to receive a KiwiSaver HomeStart grant from the government. This could help you purchase:
- an existing home – a grant of up to $5,000 for individuals and up to $10,000 for couples to put towards a deposit.
- a brand new home – a grant up to $10,000 for individuals and up to $20,000 for couples to help with the costs of buying or building.
The KiwiSaver HomeStart grant is administered by Housing New Zealand and you must be a KiwiSaver member to apply. Form more information on how to apply please click here
The information is of a general nature and does not constitute financial advice or other professional advice. Before taking any action, you should always seek financial advice or other professional advice relevant to your personal circumstances.