Shelley Hanna answers your KiwiSaver questions

You can't gift your KiwiSaver to someone for a first home unless you are over 65.

Q Am I able to gift my KiwiSaver to my son for his papakāinga whare? Also, can whānau combine KiwiSavers when purchasing a home together like a husband and wife can? For example, can son and mum combine, or multiple whānau who may be purchasing together?

A Are you over 65? If not, you can't gift your KiwiSaver to someone for a first home. This would effectively be a withdrawal, and the only conditions for early withdrawal are buying a first home for yourself, significant financial hardship, serious illness or permanent emigration. Once you are eligible for NZ Super (age 65) you have access to your savings and can spend the money in any way you choose.

Using KiwiSaver for a First Home is a great way to get on the property ladder and is one of the easier ways to withdraw your money (all but $1000) before age 65. It can also be used for a papakāinga whare.

Papakāinga is a group of houses on whenua Māori as a community. The process is supported by Te Puni Kōkiri – the Government's principal policy adviser on Māori wellbeing and development. Papakāinga is becoming an increasingly popular option for many whanau.

Kiwibank and Kāinga Ora joined forces to create "kāinga whenua loans". To qualify for the loan, Kiwibank has specific criteria that need to be met. The difference between a kāinga whenua loan and a mortgage is that the loan is secured against the house as opposed to the house and land. With a kāinga whenua loan for individuals, Kiwibank can lend up to $500,000 for the construction or purchase price of the house, subject to certain conditions.

These conditions include a licence to occupy the land, a valuation from a registered valuer and a satisfactory building contract.

No deposit is required for a loan below $200,000, but a deposit requirement of 15 per cent for every dollar borrowed above $200,000 will apply. For example, a $400,000 loan would require a deposit of $30,000. Kāinga whenua loans are available to only those people who have no other access to finance to build, relocate to or buy on their multiple-owned Māori land.

If buyers are eligible for a first home withdrawal, they should apply through their KiwiSaver provider. Each person must submit their own application. If any have previously owned property, they must apply through Kāinga Ora as a "second chance" purchaser.

Family members can buy a house together — for example, two siblings could both withdraw their KiwiSaver funds to buy a property, you don't have to be a "couple". Both their names must appear on the title. Is there a limit on the number of buyers of a property?

As long as all buyers' names are on the agreement for sale and purchase, you can have multiple buyers who may all be using their KiwiSaver funds to help them into their first home.

Aside from the KiwiSaver withdrawal, you may also qualify for the first home grant. This is managed through Kāinga Ora, and you can check their website to establish eligibility.

There is no limit to the number of buyers of a property who may also apply for the first home grant, but the income limit for all buyers combined can be no more than $150,000 per annum and there is a price cap on the home.

The first home grant pays each qualifying applicant up to $5000 for an existing home or $10,000 for a new build, if they have been paying 3 per cent or more into their KiwiSaver for at least five years.

• •Shelley Hanna is the communications manager with Peak Portfolio Management Ltd which is a Financial Advice Provider licensed by the Financial Markets Authority. Disclosure information is available at www.peak.net.nz or call 06 8703838. The information provided in this article is of a general nature and should not be relied on as a recommendation to invest in a financial product. Send your KiwiSaver questions to shelley.hanna@peak.net.nz