For many of us, KiwiSaver quietly ticks along in the background. We regard it as a retirement fund we don't think about much day to day. But if you're working towards your first home, it can also be one of the most useful tools you have right now.
Under the KiwiSaver first-home withdrawal scheme, eligible members can access their savings to help fund the purchase of their first property. Here's what's worth knowing before you get started.
Are you eligible?
To withdraw your KiwiSaver for a first home, you'll generally need to meet three requirements:
- You've been a KiwiSaver member for at least three years.
- The property will be your principal place of residence. KiwiSaver can't be used for an investment property, and you need to intend to live in the home yourself.
- You're a genuine first home buyer meaning you've never owned property before and haven't previously made a KiwiSaver first-home withdrawal.
There are some limited exceptions for previous homeowners who are now in a similar financial position to first home buyers. If you think this might apply to you, we're happy to talk through whether you qualify.
How much can you withdraw?
If you meet the criteria, you can withdraw almost all of your KiwiSaver savings, as long as at least $1,000 remains in your account afterwards.
What it can be used for
Your KiwiSaver withdrawal can go towards:
- Paying your deposit; or
- Paying the balance of the purchase price on settlement day.
If you're planning to use it for your deposit, timing is important, and your agreement needs to allow enough time for your KiwiSaver provider to process and release the funds. We're happy to review your agreement and conditions to make sure your withdrawal will come through before payments are due.
Buying land? A few things to note
If you're purchasing land with plans to build, your KiwiSaver withdrawal can go towards the land but, not towards construction costs. And if you already own land, KiwiSaver funds can't be used to contribute to building on it either.
We're here to help you get it right
Buying your first home is a big milestone, and getting the details right can make all the difference to how smoothly it goes. As your lawyer, we can:
- Confirm your eligibility
- Prepare or review your sale and purchase agreement to make sure the timing lines up with your KiwiSaver withdrawal
- Make sure everything is processed correctly and on time
If you're thinking about buying your first home, or you're not sure whether you qualify, get in touch with our team so we can help you make the most of your KiwiSaver entitlement.
