Using Kiwisaver for a Home Deposit

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.