Buying your first home is a massive milestone and one that KiwiSaver is specifically designed to help you achieve. If you are planning on using your KiwiSaver to help you into your first home, this guide is for you.
Step 1: Eligibility
Firstly, it’s important to determine if you are eligible to withdraw from your KiwiSaver account to contribute to your deposit.
To be eligible you must meet all the following criteria:
- Must have been a KiwiSaver member for three years or more;
- Can’t have made a withdrawal from a KiwiSaver scheme for purchasing a home before;
- Can’t have ever held an estate in land; and
- The property you mean to purchase should be intended to be your main home which you plan to live in for at least six months. Alternatively, the land you mean to purchase should be used to build or relocate a home on, which you also plan to live in for at least six months.
There are some limited exceptions to the above criteria. For instance, if you are a previous homeowner, Kainga Ora may be able to assess your personal situation and determine if you are in a similar financial position to a first home buyer and grant you an exception.
You may also be eligible for a Kainga Ora First Home Grant. For full eligibility details and terms can be found at www.kaingaora.govt.nz/home-ownership
Step 2 - Determine how much you can withdraw
The amount available will be:
You can withdraw all but $1000 of your KiwiSaver balance on the date of the withdrawal.
You also cannot withdraw any savings transferred from an Australian complying superannuation scheme or any Government Contributions received to your account while you were residing overseas.
Please Note:
Please note that you can only withdraw from your KiwiSaver balance once and it cannot be after the settlement date. For instance, if you withdraw part of your eligible amount only to purchase land, you won't be able to access further monies to build your house.
Check your balance:
You can check your KiwiSaver account balance anytime through our web page login
Step 3 - Arranging your finance
Your bank or mortgage broker may request a confirmation of your KiwiSaver account balance as part of your financing package. You can go www.lifestages.co.nz online to request a confirmation letter from us. You will be asked some eligibility questions.
Step 4 - Apply to Withdraw Your KiwiSaver Funds
Complete our First Home Withdrawal Application Form ("Withdrawal Form"). This should be supplied to us at least 15 working days before you require the money for settlement.
Applying to withdraw from your KiwiSaver funds requires some documentation. It is usual for your solicitor to assist you in the compilation of these requirements:
- The original completed Withdrawal Form with the Statutory Declaration completed by a JP, Solicitor, or a person authorised to take a statutory declaration and Solicitor's letter;
- A copy of the Sale and Purchase Agreement, whereby you are specifically noted as a purchaser;
- A copy of your solicitor's trust account pre-printed deposit slip;
- Certified copies of identity documentation; and
- Any other documents required to support your Withdrawal Form. For example, purchases in the name of a Trust or purchases of Māori land.
The withdrawal amount will be paid directly into your solicitor's trust account to be used as part of the purchase price.
Please Note:
- You can only make a withdrawal once and it can't be after the settlement ;
- If you make a withdrawal towards the deposit of your first home, ensure you are drawing sufficient funds to meet your settlement obligations. You cannot make another withdrawal again at settlement.
You can post or courier the documentation to us using the return details at the end of the Withdrawal Form.
What happens once we receive your application?
The Withdrawal Form will be processed by our team when the correct supporting documents are received. The approval is strictly regulated by law and can only occur on the receipt of all of the documentation as detailed in the Withdrawal Form.
Step 1
If anything is missing, we’ll let you know that we need more information. We can’t continue to the next step until we have everything we need from you.
Step 2
We'll let you know when your application is approved either by phone, email, or letter.
Step 3
We'll arrange payment to your solicitor's trust bank account as supplied with your Withdrawal Form.
How long does it take?
We cannot pay out after the settlement date of your home.
Your completed First Home Withdrawal Application form and all supporting documents must be received at least 15 business days before either your deposit payment is due or settlement date.
Please account for the longer delivery timeframes by NZ Post when sending your application and documents by post.
How else can we help?
Searching for a home loan? SBS bank offers first home loans, and more. Find out more here.
Interested in shared ownership? There are a few approved providers that will take an equity stake in a property to allow occupants to own a home and have a smaller mortgage.
- New Zealand Housing Foundation
- Queenstown Lakes Community Housing Trust
- YouOwn
