How to use a KiwiSaver withdrawal for your first home

How to use a KiwiSaver withdrawal for your first home

So, you’ve been contributing to your KiwiSaver for a while now and you’ve started to look for your dream home. If you’re wondering whether the government can help you out with that, the answer is yes - you may be eligible for a KiwiSaver withdrawal that you can then put towards buying your first home.

Here’s what you need to know before you contact your scheme provider.

Can you use your KiwiSaver?

If you’ve had a KiwiSaver account for at least three years, then you are eligible to make an early withdrawal from it to use towards the purchase of your first home. When making this kind of KiwiSaver withdrawal, you have to make sure that at least $1000 is left behind in your KiwiSaver savings account.

If you have owned a previous home, you will only be eligible if Kāinga Ora assesses your financial position and deems that you are. If you meet the above criteria, then you could also be eligible for a KiwiSaver HomeStart grant.

These will depend on your individual circumstances, but you could receive up to $10,000 from the government to buy your first home. The amount you get is based on how long you’ve had KiwiSaver funds for, and whether you’re buying a new build, buying an existing home or land. A home is considered a new build if its Code Compliance Certificate is received less than a year before Kāinga Ora Homes and Communities gets your first home grant application.

What can you withdraw from your KiwiSaver?

If you’re eligible to make a KiwiSaver withdrawal towards your first home purchase then you’ll be able to withdraw the following:

- The interest you’ve earned on your KiwiSaver funds;

- KiwiSaver contributions you’ve made personally;

- KiwiSaver contributions your employer has made;

- Any fee subsidies you’ve received; and

- Government contributions to your KiwiSaver account.

How to use KiwiSaver for your first home

Making a KiwiSaver first home withdrawal once you’ve determined that you’re eligible is pretty simple. To get the process started, you have to get in touch with the provider of your KiwiSaver scheme.

Each scheme provider has different forms that have to be filled out, and most, if not all, will advise that your solicitor is the one who sends the completed KiwiSaver first home withdrawal form back to them. You will have to specify the amount that you want to withdraw from your KiwiSaver funds, and also let your scheme provider know how you want to use that money - for the deposit, or for settlement.

Try and have as much of the supporting documentation to hand before you get cracking on the application; things will run smoother for you and your solicitor if you do. It’s good to have copies of the following:

- A certified ID and proof of address;

- Your solicitor’s trust account details so your KiwiSaver provider can send them the funds;

- A copy of the sale and purchase agreement; and

- Any documents relating to you using the KiwiSaver withdrawal for either your deposit or settlement

You should aim to submit your KiwiSaver first home withdrawal application to your scheme provider at least 15 working days before you need the funds. Whether you’re in a buying or building position is also something you need to keep your provider informed about during this process.

Have other questions about first home ownership? Not sure what a LIM report is? Check out our first home buyers hub with advice on everything from why you might need a building report to what you'll want to own before you move into your new home.