Using KiwiSaver Smarter: Advanced Strategies Most First Home Buyers Don’t Know

You can take out almost all of it! You can withdraw your own contributions, your employer’s contributions, and the government tax credits. You can also take out any investment returns you have earned. The only thing you must leave in the account is $1,000. This stays there so your KiwiSaver account remains open for your future retirement savings.

Yes, you can, but you must tell your lawyer early. Usually, KiwiSaver money is paid at the very end (settlement). However, many contracts now allow the money to be used for the deposit that you pay when the contract becomes unconditional. Your lawyer will need to fill out special forms to make this happen, so make sure you talk to them before you sign anything.

Yes. The rules say you must intend to live in the home for at least six months. You cannot use your KiwiSaver to buy an investment property that you plan to rent out right away. It is designed to help New Zealanders get into their own primary residence. If you move out too early, you might get into trouble with the rules, so it is best to plan to stay.

The First Home Loan is a special setup where you only need a 5% deposit instead of the usual 20%. It is backed by Kainga Ora. You can absolutely use your KiwiSaver withdrawal as part of that 5% deposit. This is a very powerful way to get into a home much sooner. Team Neet Dhiman can check if you earn the right amount of money to qualify for this special loan.

It usually takes about 10 to 15 working days for the KiwiSaver provider to process your application and send the money to your lawyer. You should start the paperwork as soon as you have a Sale and Purchase Agreement. If you wait until the last minute, you might miss your payment deadline. Always give yourself plenty of time to avoid extra stress.

Sometimes! If you are in a previous home buyer situation, you might still be able to withdraw your funds. You have to prove to Kainga Ora that you are in a similar financial position to a first home buyer (meaning you don’t have too many assets). If they give you a letter of approval, your KiwiSaver provider will let you take the money out just like a first-timer.

Most experts suggest moving to a Conservative or Cash fund if you plan to buy within 12 months. This is because Growth funds can go up and down quickly. You don’t want the stock market to crash and take 20% of your deposit with it right before you buy. Moving to a safer fund protects the cash you have already saved so you know exactly how much you have.

Yes! If you are buying a house together, you can both withdraw your KiwiSaver funds to put toward the same home. This is one of the fastest ways to build a large deposit. You both need to apply to your own KiwiSaver providers, but the money will all go to the same lawyer to help pay for your new shared home.

You get to keep them and use them for your home! All the money the government has put in as an annual thank you for saving (up to $521 each year) can be withdrawn. This is free money that helps your deposit grow. Just remember, you still have to leave that $1,000 minimum balance in your account regardless of how much government money is in there.

Yes. Your KiwiSaver provider will not send the money directly to you. They will only send it to a qualified lawyer’s trust account. The lawyer then uses that money to pay the person selling the house. This ensures the money is used correctly for a home. You should find a lawyer you like early in the process so they are ready to help when you find the right house.