How KiwiSaver can help you get into your first home

See how KiwiSaver can be used for your first home

Got just a few minutes? Watch the video to learn what you need to know about using KiwiSaver for your first home.

KiwiSaver first-home withdrawal, First Home Loan Scheme

After you’ve been contributing to KiwiSaver for three years, you will typically be able to withdraw almost all the money in your account to help buy a first home (except for $1000). This is called a KiwiSaver first-home withdrawal, and you apply directly with your KiwiSaver provider.

Even with just a 5% deposit, you also may be able to borrow enough to buy a first home under the government’s First Home Loan Scheme.

Find out more about First Home Loans and the KiwiSaver first-home withdrawal on the Kāinga Ora website.

Eligibility rules for using KiwiSaver for your first home

If you’re eligible, you can withdraw all your KiwiSaver money (including the government contribution), except $1000. To be eligible you must: 

• Have contributed to KiwiSaver for at least three years  
• Not have owned a home or land before (although if you are in the same position as a first home buyer, you could get a second chance – check with Kāinga Ora)  
• Be buying a home or land in New Zealand  
• Intend to live in the home or on the land you’re buying for at least 6 months  
• Have not made a first-home withdrawal before  

KiwiSaver contribution requirements

• Any Australian Super money you have transferred to KiwiSaver cannot be withdrawn for a first home.
• You must have been regularly contributing at least the minimum amount to KiwiSaver for 3 years, at least 3% of your total income.  
• The 3 years don't have to be consecutive, as long as they add up to 3 years’ worth of contributions. For example, if you have been a KiwiSaver member for 3 years but took a 6-month savings suspension, you would be eligible only after contributing for another 6 months.  
• Contributions must be made from all your sources of income, not just your main source of income.  
• If you are a non-earner, you need to make voluntary contributions of at least 3% of the adult minimum wage based on a 40-hour week.  
• If you are self-employed or on a benefit, you need to have made voluntary contributions at least once a year for 3 years of at least 3% of your annual income.  
• If you have made a combination of automatic and voluntary contributions, the total amount needs to be at least 3% of your total annual income.  

If you’re eligible to use KiwiSaver for your first home, you simply apply directly to your KiwiSaver provider.

If you are a previous home owner looking for a second chance, you’ll need to be in the same financial position as a first-home buyer (so you no longer own your previous home). Kāinga Ora will need to decide first whether you qualify and will send a letter to your KiwiSaver provider to confirm this.

How to maximise your KiwiSaver to build up your deposit

The more you can contribute to KiwiSaver, the larger your first home deposit and the less costly your mortgage will be. This is where you want to go hard with your saving!

Check that the type of fund you’re in is aligned to your goal of buying your first home. Our KiwiSaver fund finder can help you find the type of fund that matches your timeframe for saving, then you can browse funds of that type to compare.

The moment that you decide you are going to withdraw from your KiwiSaver for a first home, you’ll want to change to a defensive fund with no ups and downs. That way you won’t experience unexpected market drops, and your money will be there when you need it. Here’s where to browse defensive KiwiSaver funds on Smart Investor.