With the current Covid-19 situation, we are warning people who are relying on their KiwiSaver balances to buy their first homes to take extra care.
If you are planning to withdraw your KiwiSaver funds for a first-home purchase in the next few months, please note that a withdrawal application can take ten working days to process.
In the current market, there is a risk that your KiwiSaver balance could decrease between when the agreement becomes unconditional (and you are legally bound to purchase) and when settlement occurs.
We recommend before you satisfy your finance condition;
- Contact your Kiwisaver provider to confirm the current balance available to you for your first-home purchase and
- Get confirmation in writing from your Kiwisaver provider that these funds will be available on settlement
We suggest discussing with your Kiwisaver provider the option of having your funds in a "cash-fund" until settlement date so that your balance is more stable.
If you have any concerns about which fund you are in and are thinking about purchasing your first home shortly, please contact your provider to discuss.
