KiwiSaver for First Home Buyers
Do you have KiwiSaver?
Want to know if you can put your funds towards your first home?
Have you heard of First Home Grants (previously known as Home Start Grant)?
As of April 1st 2015, you can now withdraw ALL of your personal savings, employer contributions, member tax credits and investment earnings to purchase your FIRST HOME – basically everything except the $1000 government kick-start (if you got that).
Want to know if you qualify?
Find out by taking our Easy Criteria Quiz Below to find out!
8 quick questions to see if you meet the criteria to use your KiwiSaver for your house deposit:
- Have you been a member of KiwiSaver for a minimum of 3 years and made the minimum contribution for each year?
- Have you never owned a house or land before? *(you must have never owned a home or land before to qualify – there is however an exception to this – see note below).
- Is the house or land you are purchasing in New Zealand and intended to be your principal place of residence? (the land/house must be in NZ. A rental investment property does not qualify for this).
- Have you never made a withdrawal from a KiwiSaver scheme for the purchase of a home before? (you must not have made any withdrawals to qualify)
- Have you made the minimum contributions during your membership? (you must have done this to qualify)
- Is your income below $85,000 gross per year for a single borrower? OR for a joint applicant, Is your income below $130,000 gross per year?
- Are you 18 years old or older? (applicants must be over 18 to qualify)
- Is the house you are intending to buy below a certain threshold? In Tauranga an existing property’s threshold is $500,000, and if you are building a property, the threshold is $550,000.
- Note: If you have previously owned a property, you may be eligible to withdraw from your KiwiSaver account to help purchase a home. If you can show that you are in a similar financial position to a first home buyer, you could qualify for a previous home owner withdrawal.
If you answered YES to ALL of the questions above, contact us to see how you put your KiwiSaver towards your first home loan, and if you qualify for other grants. See below for more details…
If you answered no to any of the questions above, we can still help! Book a FREE consultation to see how we can help you reach your financial goals!
Talk to us about using your KiwiSaver to help you get into your first home!
We want to help you!
KiwiSaver First Home Grants
(previously known as HomeStart Grants)
You could be eligible for up to $20,000 towards your house deposit.
As well as being able to withdraw your own funds, the Government (through Housing New Zealand) may also qualify you for a KiwiSaver First Home Grant.
- Are you purchasing an existing home? (greater than 6 months old) The qualifying mortgage borrower is eligible for $1000 per year for every year they have been in KiwiSaver, to a maximum of $5000 (this is each borrower, so a couple can get up to $10,000).
- Are you building a new home? (or buying an existing home that is less than 6 months old) The qualifying borrower is eligible for $2000 per year for every year they have been in KiwiSaver, to a maximum of $10,000 each ($20,000 combined).
If the house is sold within 6 months then the grant has to be repaid.
What you need to know!
In order to qualify for a First Home Grant you need to meet the criteria below:
Deposit Restriction: You must have a 10% mortgage deposit already – which can be your KiwiSaver funds.
Income restriction: A single person’s income must not exceed $85,000 gross, or a couple’s combined household income must not exceed $130,000.
House Value Restriction: Different areas of the country have different house price cap. The house price caps are:
- Auckland – $600,000 for existing houses and $650,000 if building
- Hamilton City, Tauranga City, Western Bay of Plenty District, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District, Queenstown Lakes District – $500,000 for existing homes and $550,000 if Building.
- Rest of New Zealand – $400,000 for existing homes of $450,000 if building.
We can help with this too!
Want to put your KiwiSaver towards your house deposit?
Need advice on applying for First Home Grants or First Home Loans?
We can help!
First Home Loan
(Previously known as the Welcome Home Loan)
In addition to the above, Housing NZ works with certain banks and finance companies to provide a First Home Loan mortgage.
The main benefit to the customer is that Housing NZ insure the low equity home loan with the banks. However, the borrower may still be up for low equity margins added to their interest rate or pay a one-off lump sum premium.
Different banks do things differently.
To qualify for a First Home Loan you must meet ALL of the criteria mentioned in the KiwiSaver First Home Grant.
Banks we work with that offer First Home Loans are: SBS, Westpac and Co-operative Bank.
As mortgage brokers, our job is to walk you through the entire process to make it as easy and stress-free as possible.
We want to help you get into your first home!