Who can qualify
To use your KiwiSaver towards a first home, you need to meet all of the following:
- You have been a member of KiwiSaver, or a complying superannuation fund, for at least three years. This is counted from when you joined, not from your first contribution.
- You have never made a KiwiSaver first home withdrawal before. It can only be used once.
- You have not owned property before, in New Zealand or overseas.
- The property is in New Zealand.
- You intend to live in it. You cannot use the withdrawal to buy an investment property.
If you have owned a home before, you may still qualify. Kāinga Ora can assess whether you are in the same financial position as a first home buyer — usually relevant after a separation or a significant financial setback. If they agree, they issue a letter you pass on to your provider.
How much you can take out
Almost all of it. You can withdraw your own contributions, your employer's contributions, the government contributions and all the investment returns on top.
Two things have to stay behind: $1,000, which keeps your account open, and anything transferred in from an Australian superannuation scheme. There is no upper limit on the rest.
How the withdrawal works
1. Check your dates and your provider
Confirm the exact date you joined KiwiSaver so you know when your three years is up. It is also worth checking that your provider offers first home withdrawals, as a small number do not.
2. Apply to Kāinga Ora first, if you have owned before
Previous home owners need a determination from Kāinga Ora before applying to their provider. Allow at least 20 working days for this.
3. Apply to your provider for pre-approval
Do this before you go unconditional, not after. Pre-approval tells you exactly how much you can withdraw, which is the figure your lender and your budget depend on.
4. Send in your documents
Your provider will want the sale and purchase agreement, your solicitor's details, and a statutory declaration. Your solicitor usually handles most of this with you.
5. The money goes to your solicitor
The funds are paid into your solicitor's trust account for settlement, not into your bank account. Allow a couple of weeks, and tell your solicitor early that KiwiSaver is part of your deposit.
The mistake worth avoiding
If you are buying within the next year or two, the fund you are in matters more than usual. A growth or aggressive fund can fall sharply in a bad year, and a fall shortly before settlement comes straight off your deposit.
Moving towards a conservative or defensive fund as the purchase gets close removes that risk. The trade-off is lower expected returns, which matters far less over a short timeframe than the chance of your deposit shrinking right when you need it.