If you’ve been a member of KiwiSaver for more than three years you may be able to use part of your balance to purchase your first home. This chunk of cash may be what you need to get a leg up onto the property ladder but there are a few hoops you need to jump through before you can use it.
To withdraw your Kiwisaver balance you must be buying your first home, not an investment. You must also:
In some cases, if you have purchased a home before but you are in the same financial position as a typical first home buyer you may be permitted to use your KiwiSaver balance to buy a property. You’ll need to contact Housing New Zealand to check if you’re eligible.
If you fit the eligibility criteria you can withdraw most of your KiwiSaver balance to buy a home, leaving a minimum of $1,000. Your withdrawal can include any funds made up of:
If you’ve got enough to purchase your first home without your KiwiSaver it may be best to save it for your retirement instead (the sooner you start saving for it, the better your retirement will be).
Applying to withdraw your KiwiSaver balance to buy your first home is easy. You’ll simply need to contact your KiwiSaver provider and request to withdraw your funds to buy your first home. They’ll email you a form which you’ll need to fill out and return and your funds should be processed within ten days.
This can only be done when you’re ready to buy a home and you may need the following documents to apply:
Once you’ve applied to withdraw the funds the money will be paid to your lawyer or conveyancer who will pay the vendor on settlement day.
If you’ve been making regular KiwiSaver contributions for at least three years and meet other eligibility criteria you may be able to receive the First Home Grant from the government.
Buying your first home can feel like climbing a mountain, but with a little help from your KiwiSaver account, a government grant, and a team of experts on your side you can make it happen, sooner than you might think. Get in touch with Money Empire for (free) help with every step of the process, from applying for grants and withdrawing your KiwiSaver to securing a home loan and choosing a property.