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.