Blog Article

For many New Zealanders, KiwiSaver is one of the biggest financial assets they will build outside their home. While it is primarily designed to help fund retirement, eligible members may also be able to use their KiwiSaver savings to help purchase their first home.

If buying your first home is one of your goals, it is important to understand how the withdrawal works, what you may be eligible to access and when you need to start the application process.

Using KiwiSaver towards your first home

If you have been a KiwiSaver member for at least three years, you may be eligible to withdraw most of your savings to help purchase your first home.

An eligible withdrawal can generally include:

• Your own contributions
• Employer contributions
• Government contributions
• Investment returns earned within your account

You must leave at least $1,000 in your KiwiSaver account. Any funds transferred to KiwiSaver from an Australian complying superannuation scheme cannot be withdrawn for a first-home purchase.

KiwiSaver can potentially be used towards the deposit payable under a sale and purchase agreement or towards the balance of the purchase price at settlement. The funds are generally paid directly to your solicitor rather than to you personally.

If you are buying with a partner, family member or friend, each eligible purchaser may be able to apply for a withdrawal from their own KiwiSaver account.

Who is eligible for a first-home withdrawal?

The main eligibility requirements generally include:

• You have been a KiwiSaver member for at least three years.
• You are buying a home or residential land in New Zealand.
• You intend to live in the property as your principal place of residence.
• You have not previously made a KiwiSaver first-home withdrawal.
• You do not currently own a home, land or a share in a property, subject to limited exceptions such as certain Māori land interests.

A first-home withdrawal cannot normally be used to purchase an investment property that you do not intend to live in.

It is important to note that the requirement is generally based on having been a KiwiSaver member for at least three years. If you have previously taken a savings suspension or paused your contributions, this does not necessarily mean that you are ineligible. Your KiwiSaver provider should confirm your position before you enter into a purchase.

According to Inland Revenue, the withdrawal is administered by your KiwiSaver provider.

What if you have owned a property before?

Previous homeowners may still be eligible in some circumstances.

You must no longer own an interest or share in a property and must not have previously used KiwiSaver to purchase a home. Kāinga Ora will also need to determine that you are in a similar financial position to a first-home buyer.

If you qualify, Kāinga Ora will provide a determination letter that forms part of your application to your KiwiSaver provider.

The requirements for previous homeowners are more detailed and include limits relating to realisable assets. It is worth checking your eligibility with Kāinga Ora before relying on your KiwiSaver balance as part of your deposit.

Start the application process early

One of the most common mistakes we see is buyers leaving their KiwiSaver application until too close to settlement.

Your application is made directly to your KiwiSaver provider. Every provider has its own forms, document requirements and processing timeframes.

You will generally need to provide:

• Your provider’s first-home withdrawal application form
• Certified identification and proof of address
• A signed sale and purchase agreement
• Evidence of your solicitor’s trust account
• A solicitor’s undertaking
• A statutory declaration
• A Kāinga Ora determination if you have previously owned property

Some documents may need to be witnessed by a solicitor, Justice of the Peace or another authorised person.

Your provider should also offer a pre-approval or eligibility confirmation before you find a property. This can give you a clearer idea of how much may be available and whether you appear to meet the basic withdrawal requirements.

We generally will ask for this when we out together your pre-approval.

Processing times vary, but it is sensible to allow at least 10 working days and preferably longer. Your provider may require additional information, and delays can occur if a form has not been completed correctly or a document is missing.

If the funds are not available by the date they are required, they may not be able to be used towards the purchase. We recommend contacting your provider and solicitor as early as possible.

Can KiwiSaver be used to pay the purchase deposit?

In many cases, yes.

KiwiSaver funds can potentially be used to pay the deposit required under a conditional sale and purchase agreement. However, the funds must be held by an appropriate stakeholder, usually a solicitor, while the agreement remains conditional.

Your solicitor will need to provide the required undertaking to your KiwiSaver provider. You should discuss this with your solicitor before signing an agreement, particularly if you do not have enough cash available to pay the deposit without relying on KiwiSaver.

The deposit payable to a real estate agent under the agreement is different from the deposit or equity required by the bank. We can help you understand how your KiwiSaver balance, personal savings and other eligible funds fit together when calculating your overall deposit.

Continue reviewing KiwiSaver after buying your home

Once your first-home withdrawal has been completed, at least $1,000 will remain in your KiwiSaver account and your account will continue to operate.

It can be easy to forget about KiwiSaver after buying a home, but it remains an important part of your long-term financial position.

Things worth reviewing include:

Your contribution rate

From 1 April 2026, the default employee and matching employer contribution rates increased from 3% to 3.5%. Employees can also select higher contribution rates, subject to the available options.

A higher contribution rate may help build your retirement savings faster, but it also reduces your take-home pay. The appropriate level will depend on your budget, mortgage commitments and long-term goals.

Your choice of fund

Different KiwiSaver funds have different levels of risk and expected volatility.

Someone planning to withdraw their savings for a home in the near future may have different needs from someone investing for retirement several decades away. Market movements can affect your balance, particularly if you are in a higher-risk fund.

We cannot recommend a particular KiwiSaver fund unless that advice is within the scope of our financial advice service.

BUT we are able to refer you to Kiwisaver Providers that may be able to actively manage your funds better going forward.

Fees and performance

Fees can affect the amount accumulated over the long term, but they should not be considered in isolation. Investment strategy, risk, service and long-term performance after fees are also relevant.

Your goals and circumstances

Your KiwiSaver settings may need to change as your life changes. Buying a home, changing jobs, starting a family, becoming self-employed or approaching retirement can all be good reasons to review your arrangements.

Planning to buy your first home?

KiwiSaver can make a meaningful difference to your deposit, but the withdrawal needs to be coordinated with your lending, sale and purchase agreement and settlement date.

The Mortgage Advice Company can help you:

• Understand how your KiwiSaver withdrawal fits into your deposit
• Assess your likely borrowing position
• Obtain home loan pre-approval
• Compare lending options across the banks
• Work alongside your solicitor and other professionals
• Prepare for the conditions that need to be completed before settlement

If buying your first home is on your horizon, speak with us early. A clear plan can help you understand what is achievable and avoid unnecessary pressure when you find the right property.

Contact one of our advisers today around more information on Kiwisaver and how to buy your first home using your Kiwisaver.

This article provides general information only and does not constitute personalised mortgage, legal, tax or KiwiSaver investment advice. Eligibility criteria and provider requirements apply and may change. Confirm your withdrawal eligibility and available balance directly with your KiwiSaver provider. For advice about your KiwiSaver fund, investment strategy or contribution settings, speak with your provider or an appropriately qualified financial adviser.