The 1st April 2015 brings about some exciting new changes if you belong in KiwiSaver and are looking at getting into your first home! (honestly this is NOT an April Fools joke!)
From this date, those choosing to BUILD their first home can access a larger mortgage deposit subsidy through the KiwiSaver HomeStart Grant.
If you build a home, this grant may provide you with an extra $2000 for each year you have been in KiwiSaver, to a maximum of $10,000. So a couple who have been in KiwiSaver for 5 years… that’s potentially an extra $20,000 on top of their KiwiSaver savings!
If you have also been in KiwiSaver for 3 years, you can withdraw all of YOUR savings, YOUR employer’s contributions AND Member Tax Credit (but you can’t withdraw the $1000 kick start to use as a deposit towards your first home). Now we’re talking about a serious deposit folks!
Building a house also means it is exempt from the bank restrictions of a 20% mortgage deposit – you only need 5% deposit to build… This isn’t a new change, but one worth mentioning again in this context.
Unfortunately for people purchasing an existing home, the old rules still apply – which is a grant of $1000 for each year you’ve been in KiwiSaver to a maximum of $5,000 for each couple. Still pretty good!