KiwiSaver was designed as a retirement savings scheme, but for many Kiwis, it’s also become a crucial stepping stone onto the property ladder. In a market where property prices remain high and the First Home Grant has been removed, the ability to use your KiwiSaver as part of your home deposit is more important than ever.
At Vega, we’ve helped hundreds of buyers navigate this process. Here’s what you need to know if you're considering using your KiwiSaver to buy your first home.
What is KiwiSaver and Why It’s Useful for First-Home Buyers
KiwiSaver is a long-term savings plan, with contributions made by you, your employer, and the government. While its primary purpose is retirement, eligible KiwiSaver members can make a KiwiSaver withdrawal for house purchases.
That includes:
- Your personal contributions
- Employer contributions
- Government contributions (except the $1,000 kick-start, if you received it)
- Investment returns
In other words, most of your balance is accessible for your first home – making it one of the most powerful tools for buying a house in New Zealand.
Who is Eligible to Use KiwiSaver for a Home Deposit?
To use your KiwiSaver savings towards a home, you must:
- Have been a KiwiSaver member for at least 3 years
- Be buying a home to live in (not an investment property)
- Be a first-home buyer, or qualify as a ‘second-chance buyer’ if your circumstances meet the criteria
- Leave at least $1,000 in your KiwiSaver account after the withdrawal
If you’re unsure about eligibility, you can read more on KiwiSaver home purchase criteria here, or speak with one of our friendly mortgage advisors for personalised advice.
How to Apply for a KiwiSaver Withdrawal
The application process is straightforward, but it’s important to start early. Here's how:
- Contact your KiwiSaver provider to get their specific withdrawal form and process.
- Complete the application form, providing details of your purchase.
- Supply a signed sale and purchase agreement (conditional or unconditional).
- Work with your solicitor to finalise and submit the paperwork to your provider.
- Ensure the funds are used for settlement, not as a deposit for auction – unless your provider has made specific arrangements.
Timeframes vary between providers, so don't leave this step to the last minute!
How Much Can You Withdraw?
In most cases, you can withdraw everything except the mandatory $1,000 minimum balance.
For example, if you have $42,000 in KiwiSaver, you could potentially use $41,000 as part of your deposit. That’s a significant boost – especially when combined with your personal savings or other support options.
Want to see how this could affect your borrowing power? Use our Mortgage Calculator to model deposit sizes and repayments.
KiwiSaver vs. Other First-Home Support Options
While the First Home Grant has been removed, KiwiSaver remains a strong foundation. You can also consider:
- First Home Loans, which allow low-deposit borrowing
- Shared Ownership Schemes, where you co-purchase with another party
- Rent-to-Buy programmes, which let you build equity over time
KiwiSaver can be used in combination with some of these – talk to a Vega Mortgages advisor to explore the best setup for your situation.
Practical Tips and Common Pitfalls to Avoid
- Start early. Don’t wait until you’ve found a home to contact your KiwiSaver provider.
- Each provider is different. Timeframes and documentation requirements vary.
- Work with a mortgage broker who can coordinate your KiwiSaver, legal, and loan requirements together.
- Know your budget. Just because you can withdraw funds doesn’t mean you should stretch beyond your comfort zone.
- Plan for the future. After buying, make a plan to rebuild your KiwiSaver balance for retirement.
Next Steps
Using KiwiSaver for a home deposit can make a huge difference – but it pays to get professional advice early in the process.
Start by:
- Reviewing your KiwiSaver balance
- Talking to a mortgage expert at Vega Mortgages
- Running your numbers through our Mortgage Calculator
- Exploring your first-home loan options
Ready to take the next step toward home ownership?
Contact Vega Mortgages today and let’s make your first home a reality.
