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
- Can withdraw all contributions except $1,000 minimum balance
- Must intend to live in the property you purchase
- Submit withdrawal request at least 10 days before needing funds
- Consider switching to a conservative fund 1-2 years before buying
Many first-time home buyers have substantial KiwiSaver balances that could help them achieve their homeownership goal. Your KiwiSaver could be your biggest contribution to your first home deposit. Understanding the withdrawal process and how to maximise your balance is essential for first home buyers.
Requirements for First-Home Withdrawal
To qualify for a KiwiSaver first-home withdrawal, you must meet these criteria:
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 be a first-time property buyer (with some exceptions for "second chance" applicants)
What You Can Withdraw
You can access almost your entire KiwiSaver balance. This includes:
- Your own contributions
- Employer contributions
- Government contributions
- Investment returns on all contributions
Note: A minimum of $1,000 must remain in your account after withdrawal. Australian Super transfers cannot be withdrawn until age 60.
What to Do While House Hunting
Consider Moving to a Conservative Fund
If you're planning to purchase within 1-3 years, consider switching from a growth fund to a conservative fund. This helps protect your balance from market volatility - the last thing you want is a market downturn reducing your deposit right when you need it.
Pro Tip: You can switch back to a growth fund after settlement to maximise long-term returns for retirement. The conservative switch is just temporary protection for your deposit.
Increase Your Contributions
Consider boosting your KiwiSaver contributions to accelerate your deposit savings. Even an extra 1% of your salary can make a significant difference over time. You can:
- Increase your employee contribution rate (request a KS2 form from your employer)
- Make voluntary lump-sum contributions
- Set up automatic voluntary payments
Need personalised guidance?
Chat with a First Home Buyers Club affiliated mortgage adviser - no obligation!
When Ready to Purchase
Withdrawal Timing
Submit your withdrawal request at least 10 working days before you need the funds. This allows time for your KiwiSaver provider to process the request and transfer funds to your solicitor.
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 your KiwiSaver allocation. Consider reallocating to a growth fund for long-term wealth building toward retirement. Your home purchase is complete, so you can now focus on maximising returns for the long term.
Don't Underestimate the Value of Advice!
A KiwiSaver review can help you optimise your account strategy and ensure you're making the most of your balance for your first home purchase.
Frequently Asked Questions
Unlock the KiwiSaver Calculator
Join free to access all our first home buyer tools and calculators.
Create Free AccountAlready have an account? Sign in
Related Articles
5 Tips to Boost Your KiwiSaver First Home Deposit
Practical tips for boosting your KiwiSaver for a first home deposit. Learn about contributions, fund choices, and maximising government credits.
How Market Volatility Can Hurt First Home Buyers Using KiwiSaver
Essential guide for first-home buyers on protecting your KiwiSaver deposit from market volatility. Learn when to switch to a Conservative Fund.
Why Your KiwiSaver Fund Choice is so Important for First-Home Buyers
Essential guide for first-home buyers on choosing the right KiwiSaver fund. Learn about growth vs conservative funds and matching your fund to your timeline.
How Much Deposit Do I Need as a First Home Buyer?
Comprehensive guide on deposit options from 5% to 20% for first-home buyers. Learn about First Home Loans, YouOwn, and new build options.
