What a great opportunity to get into your first home, thanks to your parents.
If you've been in KiwiSaver for at least three years you can dip into those funds to help buy or build your first home but there is a bit of fine print, as you point out.
KiwiSaver withdrawals to help with buying a first home are handled by the KiwiSaver providers so I talked to Joe Bishop, head of retail and marketing at Gareth Morgan Investments, about your options.
"KiwiSaver offers two features to help with home ownership," Bishop says.
"These are the first home savings withdrawal and the first home deposit subsidy.
'You can use both of these features to buy a home or buy land to build a home on.
"However, you can't use a KiwiSaver withdrawal to help pay for the cost of building a new home alone.
"This is because the first home withdrawal is only available to eligible members 'for the purchase of an estate in land'.
"You are required to show that you are the purchaser of the estate in land and that this agreement has become unconditional before a first home withdrawal can be paid.
"If there is no agreement to purchase an estate in land - as in this case - then there is no provision to withdraw funds from your KiwiSaver account.
"However, a withdrawal to purchase the land that you intend to build a house on and which will become your principal place of residence would be permitted," says Bishop.
The first home deposit subsidy Bishop mentions is managed by Housing New Zealand.
If you are earning a modest income - $80,000 or less for an individual buying a first home or $120,000 or less for a couple - and have regularly contributed to KiwiSaver for three years then you could be eligible for the deposit subsidy.
It works out at $1000 a year for every year you have been in KiwiSaver up to a maximum of $5000, so you'll get at least $3000 extra. The house you are set to buy must also fall under the house price caps set by the government, currently ranging from $300,000 to $485,000 depending on where you want to live.
The weekend's election result has had an effect on those looking to KiwiSaver to boost their home ownership chances.
The National Party says it will modify some of the KiwiSaver rules, starting in April next year.
Currently you can take out your contributions and those of your employer, plus any investment earnings, to put towards a deposit.
From 2015 any member tax credits you have earned on your KiwiSaver contributions will also be available.
National also plan to change the first home deposit subsidy by doubling the current grant for people buying a newly built home.
Under the plan, branded KiwiSaver HomeStart, this funding will double to $6000 after three years, $8000 after four years and $10,000 after five years for the purchase of a newly-built home.
A couple could get a $20,000 boost to put towards a new home if they meet the eligibility criteria.
There is no change to the current deposit subsidy rates if you are buying an existing home. The price caps for the subsidy will also increase .
The best source of information on the deposit subsidy, as it stands currently, is the Housing New Zealand website: www.hnzc.co.nz.
Disclaimer: Information provided is stated accurately to the best of the respondent's knowledge at the time of publication. It is general in nature and should not be construed, or relied on, as a recommendation to invest in a particular financial product or class of financial product. Readers should seek independent financial advice specific to their situation before making an investment decision.
To have your KiwiSaver questions answered by the NZ Herald's panel of industry players email Helen Twose, helentwose@gmail com Sorry, but Helen cannot answer all questions, correspond directly with readers, or give financial advice.
