Big KiwiSaver Changes Are Coming — Here's What First Home Buyers Need to Know

Change #1: Contributions Are Going Up

This is the big one that affects everyone. The default KiwiSaver contribution rate — what you and your employer both put in — is rising for the first time in years.

In real terms, on a $70,000 salary that's roughly an extra $700 per year flowing into your KiwiSaver account — $350 from you and $350 from your employer. The more you earn, the bigger that boost. Over several years, that compounds significantly.

Not in a position to absorb the higher deduction right now? You can apply for a temporary rate reduction to stay at 3% for between 3 and 12 months. Just know it's a short-term pause, not a permanent opt-out.

Not sure if your contribution rate is working hard enough for you? Get your free KiwiSaver check-up →

Change #2: Younger Kiwis Can Build Sooner

If you're 16 or 17 and working, this one's for you — and it's actually a pretty meaningful shift. From 1 July 2025, eligible 16 and 17-year-olds became entitled to government contributions. And from 1 April 2026, they're entitled to employer contributions too.

That means a teenager in their first part-time job can now get the full trio of contributions: their own, their employer's, and the government's. Starting earlier means a bigger pot by the time homeownership becomes a real goal.

Change #3: The Government Contribution Has Changed

The government still tops up your KiwiSaver each year — but the rate has changed. From 1 July 2025, the government contributes 25 cents for every $1 you put in (down from the previous 50 cents), up to a maximum of $521.43 per year.

It's a smaller boost than before, but it's still free money — and free money is always worth having. Make sure you're contributing enough to qualify for the full government contribution every year you're saving.

Want to make sure you're maximising your government contribution? Get your free KiwiSaver check-up →

Change #4: Rural Workers and Farmers Can Finally Access Their Savings

This is a change that's been a long time coming for a lot of Kiwis. Under the old rules, you had to be living in the home you were buying with your KiwiSaver — which meant farm workers, rural teachers, and others tied to employer-provided housing couldn't access the scheme even when purchasing a property.

What Stays the Same

Amid all the changes, the core KiwiSaver first home withdrawal rules remain unchanged. You still need to have been a KiwiSaver member for at least three years. You can still withdraw almost everything in your account — all but $1,000 must remain. And the property you're buying still needs to be in New Zealand and be your principal place of residence (with the new rural worker exceptions noted above).

The First Home Loan scheme through Kāinga Ora is also still available, allowing eligible buyers to get into a home with just a 5% deposit — and your KiwiSaver withdrawal can cover that 5% in many cases.

What Should You Do Right Now?

• Check your contribution rate. If you're on 3%, you'll automatically move to 3.5% from 1 April 2026. If you can afford it, let it happen — every extra dollar counts.
• Check you're earning the full government contribution. You need to contribute at least $2,085.71 between July and June to get the maximum $521.43 top-up.
• Calculate what you'll have at the time of purchase. If you're within a few years of buying, work out your projected balance and factor in the higher contributions.
• If you're a rural or service tenancy worker, the mid-2026 rule changes may open up access you didn't have before. Watch for the official announcement and talk to an adviser.

The pathway to your first home is clearer than it's been in a while. KiwiSaver is one of your best tools for getting there — make sure you're getting the most out of it.

Ready to see how your KiwiSaver stacks up? Get your free KiwiSaver check-up →