KiwiSaver First Home Withdrawal NZ: When and How You Can Use It to Buy a House

When can I use my KiwiSaver Savings?

KiwiSaver is a voluntary, work based retirement savings scheme available to all citizens and permanent residents living or normally living in New Zealand. If you're between 18 and 65, starting a new job and eligible, you'll automatically be enrolled in KiwiSaver. 

This article focuses on who can use KiwiSaver and eligibility rules. If you're looking for everything you need to know - including withdrawals, deposits, second chance buyers and the home buying process - read our Complete KiwiSaver First Home Guide.

If you're unsure how your KiwiSaver withdrawal affects your borrowing power, our Christchurch mortgage advisers can help you understand your options before you make an offer.

Eligibility Criteria for Using KiwiSaver savings for a First Home Purchase

1. Minimum Membership Duration

• Three-Year Requirement: You must have been contributing to a KiwiSaver scheme for at least three years. This includes both your contributions and any contributions made by your employer.

2. First Home Buyer Status

• First Home: You must be buying your first home. The home must be intended as your primary place of residence and not an investment property. 

•  Second-Chance Buyer: If you have previously owned a home, you may still qualify as a second chance buyer if Kāinga Ora (formerly Housing New Zealand) determines that your financial situation is similar to that of a first home buyer. This is based on your current income, assets, and overall financial situation. However, if you have already used your KiwiSaver savings to purchase a home, you cannot use them again for this purpose.

3. Withdrawal Components

You can withdraw most of the savings in your KiwiSaver account. This includes:

• Your personal contributions: Withdraw everything but $1,000.00
• Employer contributions: Government contributions (member tax credits).
• Any returns on investments: Withdraw any savings your investment has made.

Exception: You must leave a minimum balance of $1,000 in your KiwiSaver account and savings transferred from an Australian Complying Superannuation scheme cannot be withdrawn.

Application Process

Preparation: Begin by confirming your eligibility and understanding the requirements. It is beneficial to discuss this with your KiwiSaver provider and possibly a mortgage adviser. 

Documentation: Gather necessary documents, including proof of contributions, details about the property, and identification documents.

Withdrawal: Apply to your KiwiSaver provider for the withdrawal. This will require filling out specific forms and possibly providing a copy of the sale and purchase agreement for the home.

Note: Before applying to withdraw your KiwiSaver, it's also worth obtaining house loan pre-approval so you know exactly how much you can borrow.

Additional Considerations

Financial Planning: Using your KiwiSaver savings for a home purchase can significantly impact your retirement savings. Consider seeking advice from a financial adviser to understand the long-term implications.

Timing: The process for withdrawing KiwiSaver savings can take time. Start the process early to avoid delays that could affect your home purchase.

Legal and Compliance: Ensure you comply with all legal and procedural requirements when buying your home. Your solicitor can assist with ensuring that all conditions outlined in the sale and purchase agreement are met. This includes checking that the property title is clear, handling any necessary paperwork, and making sure all legal obligations are met to protect your interests.

Need Help Understanding Whether You Qualify?

Knowing whether you can use KiwiSaver is only the first step.

You'll also want to understand:

• how much you can withdraw
• whether your KiwiSaver will be enough for a deposit
• whether you qualify as a second chance buyer
• what government assistance may also be available

To learn more, explore these helpful guides:

• Complete KiwiSaver First Home Guide
• How Much KiwiSaver Can You Use for a House Deposit?
• KiwiSaver Second Chance Withdrawal NZ
• First Home Grants NZ

Contact us for personalised, free mortgage advice.

At Advanced Mortgage Solutions, we help first home buyers navigate the KiwiSaver withdrawal process alongside mortgage pre-approval to make buying a home as smooth as possible.