Who can use Kiwisaver for a home deposit?

Eligibility Criteria

To access your KiwiSaver savings for buying your first home, you need to meet these criteria:

You have contributed to KiwiSaver for at least 3 years.
After withdrawal, you must leave at least $1,000 in your KiwiSaver account.
The money can only be used to buy your first home.
The property must be for an owner occupied property, not an investment property.

How to Prepare

Get eligibility confirmation from your KiwiSaver provider early, ideally before you start house hunting.
Banks will require proof you’re eligible to withdraw your Kiwisaver as part of any home loan approval.

Timing and Using KiwiSaver in the Buying Process

KiwiSaver withdrawals can take up to 15 working days to process.
If you have only worked and earned in NZ, it will likely be 10 days or less.
For anyone who has spent time working overseas it will likely take the full 15 working days.
You can only apply for withdraw your Kiwisaver after you have a signed Sale & Purchase Agreement (conditional or unconditional).

Special Considerations

Auction purchases are unconditional offers requiring an immediate deposit. KiwiSaver money will not be available immediately to pay this deposit. However, you can ask the real estate agent beforehand to negotiate with the vendor for a reduced deposit on auction day, with the balance paid once KiwiSaver funds are available (10–15 working days later).
If you are buying your second home to live in and you did not use your Kiwisaver to buy your first home and you are in a similar position to a typical first home buyer, you may be eligible to withdraw your Kiwisaver second time around.

Final Payment (Settlement Day)

The application to withdraw your Kiwisaver is completed together with your solicitor (the sign off on this for you).
KiwiSaver funds will be paid into your solicitors trust account prior to settlement day and are held there until settlement
Settlement usually happens 2–3 weeks or more after your purchase is confirmed unconditional, which gives you time to organise your KiwiSaver withdrawal.

Summary

KiwiSaver is a great way to help with your deposit in buying your first home.
Plan ahead to get your eligibility sorted early.
Be mindful of timing, especially with auctions, where the deposit is due immediately.
HelloYello can help you figure out if and how KiwiSaver fits into your home buying timeline.

Tad confusing? check our videos