Can I Use My KiwiSaver to Buy My First Home?

In most cases, yes. If you have been contributing to KiwiSaver for a qualifying period and you meet the eligibility rules, you can usually withdraw most of your balance towards a first home, with a minimum amount left in the account. The exact criteria and any first-home support can change over time, so it is worth confirming the current settings before you commit to anything.

Who is eligible for a first-home withdrawal?

A first-home withdrawal is generally aimed at people buying their first home who have been a KiwiSaver member for a minimum length of time. There are also situations where people who have owned a home before may still qualify as a “second-chance” buyer. Because the rules are specific, it pays to check your own eligibility before you start house hunting.

How much of my KiwiSaver can I withdraw?

Many members can withdraw most of what is in their account, with a set minimum that must stay behind. The amount available is whatever you have built up through your own and your employer’s contributions, any government contributions, and investment returns, less that minimum. Your provider can confirm the figure that applies to your account.

How long does the withdrawal take?

A first-home withdrawal is not instant. It involves an application to your KiwiSaver provider with supporting documents, and the funds are usually paid to your solicitor rather than to you directly. Because there is processing time involved, many people start the paperwork well before settlement day.

Should I change my KiwiSaver fund as my purchase gets closer?

The fund type that suits long-term saving is not always the one people choose when a purchase is only a short time away, because there is less time to recover from any short-term ups and downs. Whether and when to adjust your fund depends on your timeframe and how you feel about that risk, which is something an adviser can talk through with you.

What else can help with a first home?

KiwiSaver is one piece of the picture. Some buyers also look at other support they may be entitled to, their deposit savings, and how their lending stacks up. Looking at these together, rather than in isolation, often gives a clearer view of what is realistic and when.

If you would like to understand how your KiwiSaver could fit into a first-home plan, our KiwiSaver page explains how we help.

The information in this article is general information only and is not intended as financial, medical, health, tax or other advice. It does not take into account any individual’s personal situation or needs. You should consider obtaining professional advice from a financial adviser and/or tax specialist in relation to your own circumstances and before acting on this information.