If you’re a KiwiSaver member, buying your first home could be easier than you think. The two ways you could do this are:
Depending on your situation, you might be able to take advantage of both ways. Bear in mind that you must meet different conditions for each way of withdrawing for your first home.
You may be eligible for a first-home withdrawal, which will let you put your KiwiSaver savings towards the cost of buying either:
To make a first-home withdrawal, you must meet all the following conditions. You need to:
If you have an interest in Māori land, you can make a first-home withdrawal to build a home on that land. But you must meet all of the other conditions and provide evidence that you have the right to live on the land.
You may be able to use your KiwiSaver savings to help pay your initial deposit on your first home. Your solicitor or conveyancing practitioner can advise you if you’re eligible to do this.
If you’re eligible for first-home withdrawal, you can take out your:
You won’t be able to withdraw:
We can give you a statement of your current entitlement, which you may need if you’re applying for home loan pre-approval. To get this, please contact us.
You'll need to send us or your financial adviser:
You can get the agreement and undertaking from your solicitor or conveyancing practitioner.
You should make sure that you return your completed forms, along with all supporting documents, at least 10 working days before you need the money.
If your application is approved, the funds will be paid to your solicitor or conveyancing practitioner’s trust account. They must:
You may also qualify for a KiwiSaver HomeStart grant.
The KiwiSaver HomeStart grant is a government contribution towards the purchase price of your first home. It is run by Housing New Zealand.
To qualify for the HomeStart grant, you must meet certain conditions. The main conditions are that you must have:
And if you're buying with someone else, or more than one person, your combined income will need to be $130,000 or less before tax.
You’ll also need to meet the rest of Housing New Zealand’s eligibility conditions.
The purchase price of the home you’re buying must be within the house price caps for your region. These caps apply whether you're buying an existing home or new home.
The size of the HomeStart grant depends on:
If you’re buying an existing home, the HomeStart grant is $1,000 for each year you’ve been contributing, up to a maximum of 5 years. This means that the most you can get is $5,000.
If you’re building or buying a brand-new home, the HomeStart doubles to $2,000 for each year you’ve been contributing, up to a maximum of 5 years. This means the most you can get is $10,000.
If two or more qualifying buyers are involved, you can each apply for the grant. You will need to submit your applications together, and the maximum grant you can get between you will be either:
To apply for the KiwiSaver HomeStart grant, or for more information, contact Housing New Zealand.
Housing New Zealand needs at least 4 weeks to process an application for the HomeStart grant. If you apply with less than 4 weeks' notice, your application may not be accepted.
In some cases, even if you’ve owned a home before, either in New Zealand or overseas, you may still qualify for both the:
Housing New Zealand will need to decide that you're in the same financial position as a first-home buyer.
To find out if you qualify, contact Housing New Zealand.
If you have any queries or want to know more: