As a first home buyer, you can use your KiwiSaver to help with your deposit. You may even qualify to access your KiwiSaver if you’ve previously owned a home before.
You can withdraw your KiwiSaver if you’ve been contributing for at least 3 years, however, at least $1,000 must remain in your KiwiSaver account and you must intend to live in the property. It cannot be used to buy an investment property.
Previous homeowner
If you’ve previously owned a home before, you may still qualify to access your KiwiSaver if you’re deemed to be in the same financial position as a first home buyer.
If you meet the following criteria, you may be able to access your KiwiSaver –
- You have not previously withdrawn your KiwiSaver funds to purchase a house
- You have been a member of KiwiSaver for at least 3 years
- You no longer own any interest/share in property
- You do not have realisable assets totalling more than 20% of the house price cap in the area you’re looking to buy in. This could include – money in bank accounts, shares, vehicles, investments etc.
We recommend that you contact your KiwiSaver provider to see if you’re eligible to withdraw your KiwiSaver funds.
The process of accessing your KiwiSaver funds
Get a Pre-approval – this will confirm how much you can withdraw and that you’re eligible to access your funds. You can either do this by contacting your KiwiSaver provider directly or by visiting their website.
Apply to access your KiwiSaver funds – once you have a signed Sale & Purchase Agreement, you need to formally apply for your KiwiSaver withdrawal. This can be initiated through your Solicitor. You’ll need the following documents:
- Valid ID
- Proof of address
- Signed Sale & Purchase Agreement
- A completed First Home Withdrawal Form
- A letter of undertaking from your solicitor
Submit your application – you’ll need to submit your application to your KiwiSaver provider as soon as you have all of your documents ready. This process can take up to 15 working days to process your withdrawal, so you’ll need to factor this into your timeline
Work closely with your solicitor
- Provide a letter of undertaking to your KiwiSaver provider
- Confirm details of the property purchase
- Receive the funds from your KiwiSaver provider into their trust account
- Use your KiwiSaver funds as part of your deposit on settlement day
Auction Purchases
If you’re purchasing at auction and your KiwiSaver funds are your main source for your deposit, you’ll need to be aware that a deposit will need to be paid on auction day if you’re successful.
We recommend that you discuss your options well in advance, as you may be able to arrange early access of your KiwiSaver funds, or alternatively, you may be able to get a temporary overdraft facility to pay the deposit on time.
Want to find out more?
If you’re considering purchasing your first home, we recommend you seek expert help from one of our experienced Mortgage Advisers.
