KiwiSaver can help grown-ups buy their first home

Two KiwiSaver benefits for first home-buying grown-ups: the first home withdrawal and the HomeStart grant.

Once people achieve grown-up status they generally want to buy a home, because that's what they see other grown-ups doing. Problem is, the price of a home these days might as well be a million dollars it feels so out of reach. Just mustering the deposit can feel impossible.

If you're in KiwiSaver, however, there are options to help with the first home buying situation: the first home withdrawal and the HomeStart grant. You might be eligible for one or both of these if you:

• have regularly contributed to KiwiSaver for at least three years;
• intend to live in the property you want to purchase (investment properties aren't eligible);
• meet the other eligibility requirements, as outlined below, and described in detail on the Housing New Zealand website.

The KiwiSaver first home withdrawal

As of April 2015, you can withdraw almost everything in your KiwiSaver account to help pay for your first home. This includes all contributions: yours, your employer's and the government member tax credits. You must leave $1,000 in your account and any funds transferred from an Australian complying superannuation fund.

If you've owned a home before but have never received a first home withdrawal you might still be eligible.

Note that you can now use the KiwiSaver first home withdrawal to pay the initial deposit in some circumstances. Talk to your lawyer for more information.
The KiwiSaver first home withdrawal can sometimes take a while to process so we recommend applying early so that you have enough time before you need it.

To apply: Contact your KiwiSaver provider. If this isn't your first home you'll need to apply through Housing New Zealand first.

The KiwiSaver HomeStart grant

This is a one-off payment from Housing New Zealand for individuals or couples buying their first home.

For purchasing an existing home (meaning a home more than six months old), you can get $1,000 for every year you've contributed to KiwiSaver, starting at three years and capping out at five. The max payment is $5,000 for individuals or $10,000 for couples.

For purchasing a new home, a property purchased from plans but not yet built, or land to build a home on, you can get $2,000 for every year you've contributed to KiwiSaver, starting at three years and capping out at five. The max payment is $10,000 for individuals or $20,000 for couples.

There are house and salary caps on this one, so check the Housing New Zealand website for more information.

Apply for a HomeStart grant

Before you apply, first check your eligibility according to Housing New Zealand:

• HomeStart grant eligibility checklist
• Buying an existing/older home or a new home
• Buying land to build a new home on
• Buying property off the plans

When you're ready, apply to Housing New Zealand. You also can apply for pre-approval if you haven't yet found the home you want.

But I don't have a KiwiSaver account

If this all sounds marvellous but you're not currently in KiwiSaver, well - that might be something worth mulling over.


More information
Check out more info on the KiwiSaver page on the Kiwibank website.


Information contained in this article is correct at the date of publishing and is intended as general information only. This article does not take into account your financial situation and goals and is not personal advice. For advice about your particular circumstances, please contact an authorised financial adviser.