One of the many benefits of being a part of the KiwiSaver scheme, is that if you have your sights set on that dream first home, you may be eligible to withdraw from the scheme to put towards your deposit.

There are some requirements to meet in order for you to be eligible to withdraw from your KiwiSaver. To withdraw some or most of your KiwiSaver you must:

• Have been a member of the KiwiSaver scheme for at least three years.
• Are Intending to live in the house for at least six months
• Using the funds to purchase your first home.

If you have previously owned a home, you may still be eligible to withdraw. You will need to be in the same financial situation as a first home buyer, which is determined by Housing New Zealand. Your scheme provider may require you to contact Housing New Zealand to determine this.

In order to apply, you’ll need to contact your KiwiSaver provider to make a first home withdrawal – your provider will either be your bank, chosen by default, or your employer. You can contact IRD here if you are unsure of your provider.

You will also need to have a conditional sale and purchase agreement for your first home/land, once you have this, you can choose to make your withdrawal either at the point of deposit or when you settle. Applying to use your KiwiSaver funds at settlement will require an unconditional sale and purchase agreement. This is what you’ll need:

• Duplicates of the sale and purchase agreement – listing you as the purchaser.
• A completed KiwiSaver Scheme First Home Purchase Withdrawal form.
• A completed solicitor’s or conveyancing practitioner’s letter.

You can’t make a first home buyer’s withdrawal after the property purchase has settled, so ensure you apply and provide all required documentation at least 10 days before the withdrawal is needed.

If you have been contributing to KiwiSaver for over three years, you may also be eligible for a KiwiSaver HomeStart grant. The HomeStart Grant makes it even easier to buy your first home by providing you between $3,000 and $5,000 maximum, depending on how long you have been in the scheme ($1000 per year).

In addition to this, if you are looking to buy a newly built home, or build your own, the grant is doubled – $2,000 per year of membership up to a maximum of $10,000 (five years for each member).

Eligibility for this grant is determined by Housing New Zealand through the following criteria:

• You have contributed the required minimum amount (3%) to KiwiSaver for at least three years.
• Be 18 years or over.
• Must be a first home buy or build.
• Be earning less than $85,000 (before tax) per year for one person, or less than $130,000 per year for two or more people.
• have a deposit that is 5% or more of the purchase price, including the addition of the grant.
• be planning to live in the house for at least 6 months from the settlement/completion of the property.

In addition, there are maximum values of grants payable for the purchase of a single dwelling, regardless of the number of eligible purchasers: $10,000 for the purchase of an older/existing property and $20,000 for the purchase of a new property.

House price caps will also apply.