Planning To Use KiwiSaver Withdrawal For Your Deposit?

Are you planning on using your KiwiSaver Withdrawal for the deposit on your first home?  Here are a few things to consider.

KiwiSaver tips for first home buyers

If you’re planning to use your KiwiSaver Withdrawal to help buy your first home, or land to build on in the future, it pays to check you’re making the most of your KiwiSaver account now. The more you have in your KiwiSaver account, the better off you’ll be and the more options you’ll have when you’re ready to buy your first home.

1. Consider making additional contributions

You can boost your KiwiSaver savings by making additional voluntary contributions at any time – either as lump sum or regular contributions. Making additional contributions is easy by making payments when convenient through internet banking.  Check with your KiwiSaver provider about the easiest way to do this.

2. Make sure you’re in the right fund

Savings Account

Most KiwiSaver schemes offer a choice of funds to invest in. For example, different funds offer different levels of risk and expected returns by possibly exposing oneself to a high risk fund you could possibly have a market down turn just as you would like to withdraw.  Whether it be a Conservative, Balanced or Growth fund it’s important to ensure you’re in a fund that’s appropriate for your particular needs.

Take this survey to find out home much you know about your KiwiSaver account.


3.  Ensure you receive the full Government contribution

The Government Contribution (formerly the member tax credit) is an annual contribution by the Government to encourage your savings.

The Government will pay 50 cents for every dollar of member contributions up to a maximum payment of $521.43. This means that you must contribute $1,042.86 annually (between July 1 and June 30th) to qualify for the maximum payment of $521.43.

That works out at a little over $20 a week.  If you’re not sure how much you have contributed, check with your KiwiSaver provider to make sure you don’t miss out.

4. Make sure you’re not paying too much tax

Make sure you’ve provided the correct prescribed investor rate (PIR), this is used to calculate the amount of tax you pay on your KiwiSaver.  Answer these 3 questions here to work out you PIR so you don’t pay more tax than you need to.

For guidance on how to make best use of your KiwiSaver account, speak with one of our advisors by completing the form below.


Dustin Lindale July 6, 2017 Blog, Tips for First Home Buyers