A Guide to Using KiwiSaver to Buy Your First Home

Financial Advice In Auckland

It can be tough getting your foot on the property ladder, but the New Zealand Government has a variety of programs and initiatives that aim at helping Kiwis achieve home ownership. This includes the First Home Loan as well as options to use KiwiSaver to help buy your first home.

Withdrawing From KiwiSaver

If you’ve been a member of KiwiSaver or another complying superannuation fund for at least three years, you may be able to withdraw money from your super account to go towards a deposit on your first home. You may even be eligible if you have owned a property in the past, but are currently in the same financial position as a first home buyer. If you’ve got a partner who has previously owned a home but you haven’t, you can still apply for the withdrawal.

According to recent research from the NZ Adviser, 74% of 18 to 24 year-olds and 59% of 25 to 29 year-olds are currently using KiwiSaver as a vehicle to save up for a first home deposit. If you’re eligible, you are able to withdraw any contributions you have made along with interest and tax credits. However, you must leave a minimum balance of $1000 in your KiwiSaver account.

Who is Eligible?

You may be eligible for a KiwiSaver first home withdrawal if:

  • You’ve been saving with KiwiSaver (or another complying superannuation fund) for at least three years.
  • You’re a first-time property or land owner.
  • The property or land is in New Zealand.
  • You’re going to live in the home you’re buying or build a home to live in on the land you’re buying.
  • It’s the first time you’ve made a KiwiSaver withdrawal to buy a home.
  • If you have previously owned a home before, you may qualify for a previous home owner withdrawal through Kāinga Ora.

KiwiSaver HomeStart Grant

You may also be eligible for a KiwiSaver HomeStart grant of up to $5,000 to buy an existing home, or up to $10,000 if you are building or purchasing a newly built home. Kāinga Ora are responsible for administering this grant. To qualify, you’ll need to meet the same eligibility criteria as for a First Home Loan:

  • You must be planning to live in the home
  • You must not own any other property
  • The property price must be less than the value cap for your region
  • Your annual income must be less than $85,000 per year (or $130,000 combined income if you are buying the property with other people)

If you’re buying a property with other people and you each qualify for a HomeStart grant you can combine these grants and use them all towards your property deposit. You can get up to $20,000 between you (for building or buying a newly built home).

Contact Mortgage Masters – Independent Brokers in Auckland

Mortgage Masters are your independent mortgage brokers in Auckland, servicing the community in home loans since 1998 to find our clients the best deal on the market. If you need tailored financial advice or helping finding the right home loan for your needs, please get in touch with our team today.

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