KiwiSaver Warning

With Covid-19, we are warning people who are relying on their KiwiSaver balances to buy their first homes to take extra care.
KiwiSaver Warning

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;

  1. Contact your Kiwisaver provider to confirm the current balance available to you for your first-home purchase and
  2. 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.

By
Georgia Watts
Solicitor

More Articles

Tips For Employers Considering Redundancy
July 29, 2020
Tips For Employers Considering Redundancy

A lot of businesses within New Zealand are feeling the pressure of the economic impact of Covid-19.

Read Article
Farm Debt Mediation
July 2, 2020
Farm Debt Mediation

If you are a farmer, from 1 July 2020, farm debt mediation may provide options for dealing with creditors.

Read Article
Legal Housekeeping: Contracting out Agreements with Kirsty
June 4, 2020
Legal Housekeeping: Contracting out Agreements with Kirsty

Do you and your partner need a contracting out agreement (otherwise known as a prenup)?

Read Article