We all know how hard it is for first home buyers to get into the housing market, particularly with rising house prices dictating the need for higher deposits.This has made Kiwisaver a vital part of a deposit for first home buyers.
There are a few rules and things to watch out for when using Kiwisaver as a component of the deposit for a home.
- The buyer must have been a Kiwisaver member for three or more years
- The money can only be used to purchase a home that the buyer intends to live in, not an investment property
- Even if the buyer has own a home before, they may still be eligible to withdraw their Kiwisaver. This involves a conversation with Housing New Zealand to determine if they are in the same financial position as a first home buyer
- The buyer can withdraw their contributions, any employer contributions, any returns the investment may have earned and any tax credits. They must leave a minimum of $1,000 in the fund however
The logistics of withdrawing the funds can be a little time consuming, but the team at Onion work with the client, the client solicitor and the banks to make sure the process is as seamless as possible.