Jason Bruce Mortgages

Can I Use My KiwiSaver for a First Home?

A simple breakdown — what you can use, how to use it, and what to look out for.

3 min read•Jason Bruce
Jason Bruce providing expert KiwiSaver and first home buyer advice

You might be sitting on a goldmine — without realising it. If you're a first-time buyer in NZ, your KiwiSaver could be your secret weapon.

Here's what you need to know about using your KiwiSaver for your first home purchase.

Can I Use My KiwiSaver?

Check if you meet the basic eligibility criteria.

In most cases, yes — if you meet the following criteria:

• It's your first home (or you qualify as a "second chance" buyer)

• You've been in KiwiSaver for at least 3 years

• You're planning to live in the home

• You haven't used KiwiSaver for a home before

You may also be eligible for a First Home Grant, depending on your income and the house price caps.

Check your eligibility early — it can save time and prevent disappointment later.

How Much Can I Use?

Understanding what you can withdraw from your KiwiSaver.

You can usually withdraw most of your KiwiSaver — but you must leave at least $1,000 in your account.

Your withdrawal can include:

• Your contributions

• Your employer's contributions

• Any investment returns

Sorted.org.nz offers a detailed calculator to help you estimate your potential withdrawal amount.

For example: If you've got $42,000 in your account, you could use around $41,000 toward your deposit.

What's the Process?

Step-by-step guide to withdrawing your KiwiSaver.

The process is straightforward, but timing is crucial:

• Get pre-approval from your KiwiSaver provider

• Sign a sale and purchase agreement (with a KiwiSaver clause if needed)

• Submit the withdrawal application

• Wait for the funds — these go directly to your solicitor before settlement

One common first home buyer mistake is not allowing enough time for this process — most providers need at least 10 working days.

Start the process early — don't wait until you've found a property.

What to Watch Out For

Important considerations and potential pitfalls.

While KiwiSaver is a valuable tool for first home buyers, there are some important things to consider:

• You can only use KiwiSaver once for a home

• If you're buying land or building, the rules may vary

• You still need to meet your bank's lending criteria

The Reserve Bank's LVR rules still apply, even with a KiwiSaver deposit. Remember, KiwiSaver helps with the deposit — not the loan approval.

Consider talking to a mortgage adviser before making withdrawal plans — they can help coordinate the entire process.

Calculate Your KiwiSaver Withdrawal

Use our calculator to estimate how much you might be able to withdraw.

Want to know how much you might be able to withdraw from your KiwiSaver for your first home? Use our calculator to get an estimate:

KiwiSaver First Home Withdrawal Calculator

$
$
Eligibility Status:Eligible
Your Annual Contribution:$2,250
Employer Contribution:$2,250
Government Contribution:$521
Total Annual Growth:$5,021
Maximum Withdrawal:$49,000

Note: $1,000 minimum balance must remain in your KiwiSaver account

Note: This calculator provides estimates only. Your actual withdrawal amount will depend on your KiwiSaver provider and eligibility criteria.

Remember to check with your KiwiSaver provider about their specific withdrawal process and requirements.

Need Help With KiwiSaver or Your Deposit?

Planning to use your KiwiSaver for a home purchase? Let's chat about how to make it work best for you.

I'll help you understand your options and guide you through the withdrawal process.

Jason Bruce
Jason Bruce
Licensed Mortgage Adviser in NZ. Helping Kiwis navigate their first home purchase with confidence.

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