Buying your first home with KiwiSaver

First home withdrawal

If you're a first-home buyer, you may be able to use your KiwiSaver account to help fund your purchase.

You're eligible to make a withdrawal if you meet all of the following criteria:

• You have been in a KiwiSaver scheme for three years

It pays to set up your KiwiSaver account as soon as possible. Even if you're not currently looking at houses, it's a good idea to start working off that three-year waiting period so that when the time is right, you'll be able to make your withdrawal when you need to.

• You are buying your first home (including land, and land and build packages)

You are not eligible if you have owned a home, or land before. If you’ve already owned a home or land before – you may be eligible as a qualifying previous home owner. The section below ‘if you have previously owned a property’ has more information.

• You will not be able to make a withdrawal if you have previously made a KiwiSaver first home withdrawal
• The property is in New Zealand

You must also intend to live in the house. If you’re buying a property as an investment, you won't be eligible to make a first home withdrawal.

Other things to keep in mind:

• You need to leave $1,000 in your KiwiSaver account
• You can't use any money that you've transferred to your KiwiSaver account from an Australian superannuation scheme.
• It will take us up to ten working days to process your request for a first home withdrawal. If you are organising finance for a house or land purchase (such as settling on a purchase and/or payment of deposit), please get in touch with us as soon as possible.
• If you are purchasing land to build a home on which you intend to live in, your KiwiSaver first home withdrawal will need to be used for the deposit or as part of the settlement funds when you buy the land.

KiwiSaver First Home Grant

This information is correct as at 19 May 2022 and subject to change. Refer to the Kāinga Ora website for the latest information.

You may also qualify for a First Home Grant. This grant is administered by Kāinga Ora and is worth up to $5,000 if you're purchasing an existing home, or $10,000 if you're buying a new home or planning to build one.

You can combine your grant with that received by another eligible KiwiSaver member. So if you're buying a first home as a couple and you both qualify for the First Home Grant, you can receive up to $10,000 for an existing home and up to $20,000 for a new home.

To qualify for this grant, you need to meet various criteria:

1. You need to be a first home buyer and planning to live in the house for six months or longer.
2. You need to have been contributing at least 3% of your income to your KiwiSaver account for at least three years (or $1,000 annually if that is lower).
3. The house needs to be under the relevant regional price cap as outlined on Kāinga Ora's website.

There are also household income limits of:

• $95,000 a year or less for one buyer;
• $150,000 a year or less for an individual buyer with one or more dependants;
• $150,000 a year or less for two or more buyers regardless of the number of dependants in the twelve months before you apply.

You also need to provide evidence you have a deposit that is at least 5% or more of the purchase price. Note that this amount may be less than your bank's requirements.

If you have previously owned a property

If you have previously owned a home or land (including overseas) you may qualify for both the first home withdrawal and the KiwiSaver First Home Grant, provided Kāinga Ora determines that you are in the same financial position as a first home buyer, and you have not previously made a KiwiSaver first home withdrawal.

For more information about the eligibility criteria and the application process, visit Kāinga Ora's website.