How To Buy Your New Home With Kiwsaver

Jun 29, 2022

There are two ways Kiwsaver can help first-home buyers: The Kiwsaver First Home Withdrawal and The Kiwsaver First Home Grant.

Buy Your New Home With Kiwsaver By Applying For The Kiwsaver First Home Withdrawal

You must be in Kiwi-Saver for at least 3 years before you withdraw funds for your first home. To apply for a Kiwsaver first home withdrawal, you’ll need to complete a withdrawal application through your bank.

You can choose to withdraw all of the funds that are available, or just some of them. You can also choose whether to withdraw funds as a deposit or as part of the settlement amount however you must leave $1,000 in your account.

You can withdraw:
  • your contributions
  • fee subsidies (if you got these).
  • the government contribution
  • interest you have earned

You’ll need to provide additional information to support your application, such as the details of your solicitor or conveyancer and a copy of the Sale and Purchase Agreement and return these with the completed application form.

Once you have completed this form and have all the accompanying documentation, you’ll need to take the form and documentation to

  • a Justice of the Peace,
  • a solicitor of the High Court of New Zealand,
  • a solicitor of the High Court of New Zealand,
  • other person authorised to complete the statutory declaration section of the form.

Then drop the completed form and documentation into your Bank.

If you’re buying a property with a partner who’s also a Kiwisaver member, you may both be able to apply for first-home withdrawals.

Please note that you can only make a first home withdrawal once so if you make a deposit withdrawal, you cannot make another withdrawal again at settlement.

Important Rule: You Must Intend To Live In The Home For Six Months

This rule is aimed at ensuring the house you’re buying is to live in, rather than as an investment property or holiday home.

As part of the application process, you’ll need to make a statutory declaration confirming you comply with the rules for a first home withdrawal, including that you intend to live in the house you buy.

The document will need to be witnessed, Dixon and Co Lawyers can assist you with this, should you request it. Alternatively, a Justice of the Peace can also be used.

Request An Estimate

You can request an estimate of how much you might be able to withdraw from your Bank through the Kiwsaver Scheme account online.

Timeframes

It will take approximately 10-15 business days to process your application, especially if we have any questions or require additional information from you. So, you should apply as soon as possible.

Buy Your New Home With Kiwsaver By Applying For The Kiwsaver First Home Grant

The Kiwsaver First Home grant provides eligible first home buyers a grant of up to $5,000 for the purchase of an existing home and a grant of up to $10,000 for the purchase of a brand-new home, a home bought off the plans or land on which a new home will be built.

This grant is administered and paid by Kāinga Ora – Homes and Communities.

You can apply for the Kiwsaver First Home grant if you have belonged and have regularly contributed to a Kiwsaver scheme for at least three years.

There are other criteria you’ll need to meet, including household income and house price caps, in order to qualify for this grant. For more information and details about how to apply, please visit the Kainga Ora website.

Help Buying A Home If You’ve Owned A Property Before

In some circumstances, if you have previously owned residential property or land, but have sold it, you may still be eligible for a Kiwsaver first home withdrawal and/or the Kiwsaver First Home grant.

In some circumstances, if you’ve owned a home before, but no longer have a share in a property, you may still qualify for a Kiwsaver first home withdrawal and/or the Kiwsaver First Home grant. However, you can only ever make one home purchase withdrawal from Kiwsaver.

For more information about Kiwsaver please visit: Kiwsaver (ird.govt.nz)

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about the author

Stephanie Havea

REGISTERED LEGAL EXECUTIVE

Stephanie completed a Bachelor of Business Studies and worked for many years in customer service, before achieving her Legal Executive qualification and moving into practice as a conveyancing specialist

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