Guide to KiwiSaver First-Home Withdrawal & HomeStart Grant

If you are a first home buyer, you may be able to use all or part of your KiwiSaver and be eligible for a HomeStart grant.
 Guide to KiwiSaver First-Home Withdrawal & HomeStart Grant

If you are a first home buyer, you may be able to use all or part of your KiwiSaver and be eligible for a HomeStart grant. 

KiwiSaver Scheme First-Home Withdrawal 

1) First of all check you are eligible. You must meet all the following criteria:

  • You have been a KiwiSaver member for 3 years or more;
  • You have never made a withdrawal from a KiwiSaver scheme to purchase a home before;
  • The property is intended to be your main home;
  • The property is in New Zealand;
  • You have never owned a house or land before (limited exceptions apply). 

2) Make sure you are named as the Purchaser on the Sale and Purchase Agreement and it is signed by you (not an agent). Make sure you allow at least 10 working days on the Agreement for finance to give you sufficient time to apply for your KiwiSaver. 

3) Contact your KiwiSaver scheme and get the Application form. It is best to contact your Solicitor at this time to ensure that the form is completed and signed correctly and the required documents are attached with the Application. 

4) If you’re eligible you can withdraw all of your own, employer, and Government member tax credit contributions, plus investment returns. You are unable to withdraw the $1,000 Government kick start payment. 

KiwiSaver HomeStart 

As well as being able to withdraw money from your KiwiSaver scheme account towards the purchase of your first home, you could also be eligible for a HomeStart grant. 

1) First of all check you are eligible as follows: 

  • You are 18 years or over;
  • You do not own a home or land;
  • You have not received the KiwiSaver HomeStart grant before;
  • You are a member of a KiwiSaver scheme;
  • You have contributed at least the minimum allowable percentage of your total income to a KiwiSaver scheme for at least 3 years (eg. you must have made a minimum of 36 payments);
  • You are the sole buyer and have earned $85,000 or less before tax in the last 12 months; or
  • You and another buyer have earned a combined income of $130,000 or less before tax in the last 12 months;
  • You have a deposit of 10% or more of the purchase price (this includes the money you can withdraw from your KiwiSaver and the HomeStart grant);
  • The purchase price of the property is within the regional house price caps (eg. Te Awamutu is $400,000 for existing properties or $500,000 for new properties). 

2) You can apply for the HomeStart grant online at Housing New Zealand and you will need the following information on hand to be able to complete the application: 

  • Proof of your total income earned in the last 12 months;
  • KiwiSaver contribution statement;
  • Identification (passport, driver’s licence or birth certificate);
  • Copies of your pay slips for the last two months;
  • Signed copy of the Agreement for Sale and Purchase;
  • Evidence that you have a deposit of at least 10% of the purchase price;*
  • A proposed settlement date of at least 4 weeks away;* 
    (* Not required if you are only applying for pre-approval) 

3) The KiwiSaver HomeStart grant provides eligible first-home buyers with up to $5,000 for individuals or $10,000 where there are two or more eligible buyers to put towards the purchase of an existing/older home. For the purchase of a brand new home eligible first-home buyers can access up to $10,000 for individuals or $20,000 where there are two or more eligible buyers.

By
Bradie Claydon
Registered Conveyancer and Legal Executive (Fellow)

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