KiwiSaver Mortgages

Using KiwiSaver for your first home

3 MIN READ April 23, 2019
We’ve all heard of KiwiSaver and most of us have joined up by now, but did you know that you can use KiwiSaver to help you buy your first home?If you’ve been a KiwiSaver member for three years or more, you might be eligible to…

You may also be entitled to a KiwiSaver HomeStart grant to help you along the path to home ownership.

Am I eligible to use my KiwiSaver?

To make a first home withdrawal from your KiwiSaver, there are a few important criteria you’ll need to meet:

  • You must have been a KiwiSaver member for three years or more
  • You can only withdraw money to purchase your first home – not an investment property

What is the HomeStart Grant?

The KiwiSaver HomeStart Grant provides you with a cash grant that you can put towards your first home too if you’re eligible.

To be in the running for this grant, you’ll need to have been contributing regularly to KiwiSaver for at least three years.

The HomeStart grant can provide you with $1,000 for each year of your contribution to the KiwiSaver scheme, up to $5000 per buyer for an existing or older home, and up to $10,000 per buyer for a newer home or land to build a new home on.

Am I eligible for the HomeStart Grant?

There are a few other criteria you’ll need to meet before you can be eligible for the HomeStart Grant, such as meeting the income cap threshold of $85,000 or less in the last year for a single buyer, and a combined income of $130,000 or less in the last year for two or more buyers.

There’s also a cap on the price of houses you can purchase under this grant – for example, in Auckland, the cap for existing/older properties is $600,000 and $650,000 for new properties.

To be eligible for a KiwiSaver HomeStart grant you must:

  • have been contributing the required minimum amount to KiwiSaver for at least three years
  • be 18 years or over
  • be purchasing or building your first home
  • have a household income (before tax) of less than $85,000 per year (for one person), or less than $130,000 per year (for two or more people)
  • have a deposit that is 10% or more of the purchase price, including the addition of the grant
  • be planning to live in the house for at least 6 months from the settlement/completion of the property

If you’ve owned a home before, you may still be eligible to withdraw your savings, but you’ll need to contact Housing New Zealand to determine if you’re in the same financial position as a first home buyer.

If you’re not sure if you’re eligible, it’s best to seek advice from Housing New Zealand directly.

If you have any questions on how you can use KiwiSaver as a first-home-buyer, contact our friendly mortgage team today!


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