Disclaimer:
The information on this website is for general guidance only and does not constitute financial or investment advice. Always do your own research and seek personalised advice from a qualified financial adviser or mortgage adviser before making financial decisions.
Key Takeaways
- Must be a KiwiSaver member for at least 3 years
- Eligible members can usually withdraw member, employer and government contributions, earnings and fee subsidies, but at least $1,000 must remain
- Must intend to live in the property you purchase
- Contact your provider and solicitor early because processing times vary
- Review whether your fund type still matches your buying timeframe and risk tolerance
Many first-time home buyers have KiwiSaver balances that may help with a first-home deposit. Understanding the current withdrawal rules, provider process, timing, and fund-choice risk is important before relying on KiwiSaver money for a purchase.
Requirements for First-Home Withdrawal
To qualify for a KiwiSaver first-home withdrawal, the core criteria include:
Eligibility Requirements:
- Three-year minimum: You must have been a KiwiSaver member for at least 3 years
- Intention to occupy: You must plan to live in the property you purchase or build
- First-time buyer status: You must usually be a first-time property buyer. Previous home owners may need a Kāinga Ora qualifying-person determination before their provider can assess a withdrawal.
What You Can Withdraw
Eligible members can usually withdraw most KiwiSaver savings, provided at least $1,000 remains in the account. IRD says funds transferred from an Australian complying superannuation scheme cannot be withdrawn. Withdrawable amounts can include:
- Your own contributions
- Employer contributions
- Government contributions
- Interest or investment earnings credited to your KiwiSaver savings
What to Do While House Hunting
Review Whether Your Fund Still Fits Your Timeframe
If you are planning to withdraw for a first home in the next few years, review whether your current fund still suits your timeframe and tolerance for ups and downs. FMA says conservative and defensive funds can offer lower, more predictable returns when money may be needed soon, but a fund change can also affect expected returns.
After settlement, review your KiwiSaver settings again. Your retirement timeframe, risk tolerance, and cashflow may have changed, so speak with your provider or a licensed financial adviser before changing funds.
Increase Your Contributions
If your cashflow allows, you may be able to increase KiwiSaver contributions or make voluntary payments to build the amount available for a first-home withdrawal. Check your budget, employer process, government contribution settings, and provider rules before relying on extra contributions for a purchase date. Options can include:
- Increase your employee contribution rate (request a KS2 form from your employer)
- Make voluntary lump-sum contributions
- Set up automatic voluntary payments
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When Ready to Purchase
Withdrawal Timing
Ask your KiwiSaver provider and solicitor about timing as early as possible. Kāinga Ora says approved first-home withdrawal payments are paid to your solicitor on or before settlement day, and provider processing times and document requirements can vary.
Auction Purchases
For auctions, KiwiSaver funds typically can't be accessed for the initial deposit paid on auction day due to timing constraints. The funds are usually released at settlement instead. Discuss timing with your solicitor before bidding.
Required Paperwork
Your solicitor will coordinate the withdrawal process with your KiwiSaver provider. You'll need to provide:
- Proof you meet eligibility criteria
- Sale and Purchase Agreement details
- Your solicitor's trust account details
- Statutory declaration (if required)
After Settlement
Once you own your home, review whether your KiwiSaver settings still suit your retirement timeframe, risk tolerance, contribution level, cashflow and fees. Speak with your provider or a licensed financial adviser before changing fund type.
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Frequently Asked Questions
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