KiwiSaver Withdrawal for First Home Buyers

If you are a member of KiwiSaver, you may be eligible to withdraw from your fund to use as a deposit towards the purchase of your first home.

 

So, who is eligible, what can you get and how do you apply?

Eligibility for KiwiSaver Withdrawal

  • a member of a complying fund
  • have been a member of KiwiSaver for at least three years contributing the minimum required
  • intend to live in the property. (It cannot be used to buy an investment property.)

What can you get?

  • You can withdraw all contributions including member’s tax credits can be withdrawn (with the exception of the Government $1,000 kick-start).
  • Effective 1 April 2015 and onwards your KiwiSaver withdrawal may include:
    • your members contributions
    • any employer contributions (voluntary and compulsory)
    • any returns on investment(s) received
    • any member tax credits.

NOTE: From 1 June 2015, legislative changes will allow a first home withdrawal to be used to make deposit payments in certain circumstances.

How do you Apply?

  • The withdrawal is administered by your KiwiSaver scheme provider or relevant complying fund managers and if approved the payments of the funds will be paid to your solicitor on or before settlement day.

NOTES

  • Housing NZ does not manage the KiwiSaver Withdrawal contact your KiwiSaver scheme provider.
  • The Kiwisaver withdrawal feature is separate from the HomeStart Grant. Eligibility for withdrawal has less criteria to that of the HomeStart Grant. ie Property value caps and income caps do not apply to the withdrawal feature, so whilst you may not be eligible for a grant you can still be eligible for the withdrawal.

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KiwiSaver HomeStart Grant

If you are a member of KiwiSaver, you may also be eligible for the HomeStart Grant

Eligibility For HomeStart Grant

  • Must be 18 years or over & currently do not own a home or land.
  • Have not received the HomeStart grant or previous KiwiSaver deposit subsidy before.
  • Be a member of a KiwiSaver scheme, complying fund or exempt employer scheme (contact your scheme provider to check your scheme is eligible).
  • Have contributed at least the minimum allowable percentage of my total income to a KiwiSaver scheme, complying fund or exempt employer scheme for at least three years. (From 1 April 2013 the minimum contribution was increased to 3 percent of your income, 3 percent of the minimum wage for non-earners or 3 percent of your yearly benefit for beneficiaries. From 1 July 2007 to 31 March 2009 the minimum contribution was 4 percent, and from 1 April 2009 to 31 March 2013 it was reduced to 2 percent.)
  • Are the sole purchaser and have earned $85,000 or less (before tax) in the last 12 months or; two or more buyers who have earned a combined income of $130,000 or less (before tax) in the last 12 months.
  • Have a deposit that is 10 percent or more of the purchase price. (The 10 percent deposit includes the money you can withdraw through the KiwiSaver first-home withdrawal feature, the HomeStart grant amount you or the other purchasers may be eligible for and any other funds, such as savings, fixed and term deposits or funds already paid to a real estate agent or solicitor. The deposit can also be gifted by a relative with a gifting declaration.) Note that the deposit cannot be borrowed or secured against other property, in order to qualify.
  • buying one of the following types of property and land arrangements:
      • fee simple
      • stratum estate (freehold and leasehold)
      • cross-lease (freehold and leasehold)
      • leasehold
      • multiple-owned Maori land.
  • Must be purchasing a property within the regional property value caps as follows;

Price cap for existing house:

  • Auckland – $600,000
  • Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Tasman District, Nelson City, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $500,000
  • Rest of New Zealand – $400,000

Price cap for new house:

  • Auckland – $650,000
  • Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Tasman District, Nelson City, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $550,000
  • Rest of New Zealand – $450,000

How Much Can You Get?

The amounts you can get differ depending whether you are buying a new or existing property as follows;

Existing Property

  • If you are purchasing an existing/older home, the HomeStart grant is $1,000 for each year of contribution to the scheme:
    • 3 years of contributing = $3,000 (the minimum you can get)
    • 4 years of contributing = $4,000
    • 5 years of contributing = $5,000 (the maximum you can get).

If you are buying an existing house click here for more info

New Property

  • If you are purchasing a new home, a property bought off the plans or land to build a new home on, the HomeStart grant is $2,000 for each year of contribution to the scheme:
    • 3 years of contributing = $6,000 (the minimum you can get)
    • 4 years of contributing = $8,000
    • 5 years of contributing = $10,000 (the maximum you can get).
  • For more info on purchasing

If you are buying off the plans click here for more info.

If you are buying land to build a home on click here for more info.

How do you Apply?

For step by step details and application form – click here

TIPS

Housing NZ often has to return applications several times due to errors in the application form. Check out these Common Mistakes to avoid delays in processing of your application!

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Welcome Home Loan

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Housing New Zealand run a scheme to assist First Home Owners called the Welcome Home Loan.

How it works

You need a 10% deposit – your deposit cannot be borrowed.
Income and Housing Value caps apply to this scheme as follows (as at 15th March 2017)

Income Limits

  • $85,000 for 1 buyer,
  •  $130,000 for 2 or more buyers

Property Value Limits

Must be purchasing a property within the regional property value caps as follows:

Existing Properties

  • Auckland – $600,000
  • Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $500,000
  • Rest of New Zealand – $400,000.

New Properties

  • Auckland – $650,000
  • Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $550,000
  • Rest of New Zealand – $450,000.

Other Conditions

  • You must live in the property
  • Must be a standard residential property
  • You cannot own any other property
  • Applicants must be New Zealand Citizens or Permanent New Zealand Residents (holding a ‘Permanent Resident Visa’)
  • a $400 application applies – can often be added to loan
  • a 1% Low equity fee applies – can often be added to loan

Welcome Home Loans are only available from some lenders.

The First Home Buyers Club can assist you with a pre-approval for a Welcome Home Loan.

 

Click here for Housing New Zealand Welcome Home Loan website[/wlm_private_First Home Buyers Club]

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