Using Your Kiwisaver For Your First Home
SM Property

May 29, 2023

KiwiSaver is a popular savings scheme that many Kiwis are a part of. It’s a great way for people to save for their retirement and to help with the deposit of their first home.

KiwiSaver has many benefits – Member Tax Credits, the ability to withdraw it for your first house, and a 3% employer contribution, to name a few.

Using KiwiSaver for your first house deposit

These days it’s common for first home buyers to use their KiwiSaver for their first house. KiwiSaver has a few withdrawal rules, but it can be a great way to help top up your first home deposit.

It’s best to work with a good mortgage/financial advisor that can guide you through the necessary steps in order to use KiwiSaver towards your first house. Chat with the SM team today if you need some good recommendations.

If you’ve owned a house before, and no longer do, you may still be able to use your KiwiSaver. There is a ‘second chance’ KiwiSaver program, and although it has additional criteria, it could be worth looking into.

How do I Withdraw my Kiwisaver?

Have a chat with a good mortgage broker or financial advisor. They’ll be able to guide you through the necessary steps, as well as other parts of arranging a mortgage.

How much of my Kiwisaver can I use?

You can typically withdraw all of your KiwiSaver apart from $1,000. You also can’t use any money you may have earned or transferred from Australia. There’s also some additional criteria, that your broker or advisor will be able to talk to you about.

How much Money do I need in my Kiwisaver?

If you’re wondering if there’s enough in your KiwiSaver to buy a house, again this is a good time to chat to a mortgage/financial advisor. As a starting point, you might need upwards of 10-20% of a house’s purchase price as your deposit. But there are other factors to take into consideration that can change how much deposit is needed. If there isn’t enough money in your KiwiSaver, you can also use some of your savings. You may also be eligible for government assistance, such as the KO First Home Grant. We’ve got several blogs on this grant that you can view here.

Can me and my Partner combine our Kiwisavers?

It is possible to use your KiwiSaver as well as that of a co-buyer of the house, such as your partner. For example, if you have $30,000 available to withdraw, and your partner has $20,000, you may be able to use these together.

Am I in the right Kiwisaver fund?

It’s also worth making sure you are in the right fund. Many Kiwis have no idea what fund they are in, or whether they are with the right scheme provider. While it can seem obvious to have KiwiSaver with your bank for convenience, there are numerous other providers out there that are doing a great job, which is why more and more people are now choosing alternative providers. This is another thing you can chat to a mortgage broker or financial advisor about.

The SM Property team are here to help with all parts of your home buying journey. We know first hand it’s a long process with lots of factors to consider. We are here to hold your hand through the whole process and help you with anything you need, such as good broker or lawyer recommendations. Chat with the team today to get started, or head to our Instagram for more home buying tips and tricks.

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