Owning your own house may not have to remain a dream if you have been a KiwiSaver member for at least three years.
Being able to purchase your first home may sound like a fantasy, but if you have been steadily saving over the years and remained a member with KiwiSaver for three years, you may be able to put all of it together.
Eligible members of KiwiSaver can withdraw their savings (including tax credits), but at least $1,000 must remain within the account. This can be put towards their first home, provided that the primary intent behind the purchase is to live in the property (and not to use it as an investment property).
If you are a first home buyer, you may also be able to apply for the First Home Buyer’s Grant, which could give you up to $15,000 to put towards your first home.
If this is not your first home purchase, but you wish to use your KiwiSaver funds to help finance the purchase, you will need to speak with the provider to find out if you can do so.
Kāinga Ora will also need to determine whether or not you are a qualifying person initially. If deemed to be in the same financial position as a first time home buyer, they will provide you with a letter to be forwarded to your KiwiSaver scheme provider to assist with your application to withdraw your KiwiSaver funds.
Withdrawing from your fund to purchase your first home is not limited solely to KiwiSaver members – if your fund is a complying fund provider, you may be able to withdraw your savings to help you buy your first home. However, you will need to ensure that your provider allows you to withdraw for this purpose, so you will need to discuss this with your provider.