A guide to KiwiSaver withdrawals and First Home Grants

The KiwiSaver first home withdrawal and First Home Grants are two completely separate processes. However, if you are eligible, the combination of the two can jump-start the process of buying your first home.

The KiwiSaver first home withdrawal allows for early withdrawal of your KiwiSaver savings in order to assist with the purchase of your first home. There are however, limitations and eligibility criteria to consider. These include:

• You must have been a member of and been contributing to your KiwiSaver regularly for at least three years.
• Are buying a home or piece of land for the first time.
• Are buying a home within New Zealand.
• You must live in the home or build a house on the land you are buying.
• You no longer have any interest or share in a previously bought home.
• You are buying one of the following arrangements of property or land: Fee Simple, Stratum Estate (freehold and lease), Cross-lease (freehold and lease), Leasehold, Maori Land.

Provided you meet these criteria, you will be able to withdraw from your KiwiSaver either a specific amount or all of your savings (excluding the initial $1,000.00 Government grant you received when opening your KiwiSaver).

In addition to the KiwiSaver first home withdrawal, you may also be able to apply for the First Home Grant. This is a grant of funds from the Government of between $3,000.00 and $10,000.00, depending on the type of your purchase and your circumstances. Again, there are limitations and eligibility criteria. These include:

• You must have been a member of and been contributing to your KiwiSaver regularly for at least three years.
• Do not currently own land or a home.
• Have not previously received this grant or the previous ‘KiwiSaver deposit subsidy’ scheme.
• Have a deposit of 5% or more of the purchase price – this can include funds from your KiwiSaver first home withdrawal.
• Contributed no less than 3% of your total yearly income for at least three years.
• If you are purchasing on your own; your total earnings have been less than $95,000.00 before tax for the last 12 months.
• If you are purchasing as two or more buyers; your total, combined income in the last 12
  months is less than $150,000.00 before tax.
• Ownership must be in equal shares when purchasing property with other people.
• The price of the property you are purchasing is within the regional house price caps.
• Are buying one of the following arrangements of property or land; Fee Simple, Stratum Estate (freehold and lease), Cross-lease (freehold and lease), Leasehold, Maori Land.

Assuming you are eligible, you would be entitled to the following grant amounts:

• $1,000.00 for every year you have contributed to your KiwiSaver account, beginning at three years ($3,000.00 minimum) and capping at five years ($5,000.00 maximum) if you purchasing an existing or older home. This grant caps at $10,000.00 for couples or groups.
• If you are purchasing a house and land package/ a property off the plans you may receive $2,000.00 for every year of contribution, beginning at three years ($6,000.00 minimum) and capping at five years ($10,000.00 maximum). The grant caps at $20,000.00 for couples and groups.

The application process for both these schemes is simple. You must complete the required forms supplied by your chosen provider accompanied with supporting documentation such as certified ID and proof of address. Your provider will supply you with a full list of the required documentation. Note applications can take up to 15 working days to process. Your lawyer will be familiar with the process and can assist you with the applications.