Just about every first home buyer will ask the question ‘can I use kiwi saver’.
The following blog will outline important information to answer this question.
The following blog will outline important information to answer this question.
Eligibility for Kiwi Saver – To answer the question ‘can I use kiwi saver’ you need to know the following information; To withdraw your kiwi saver you need to have been a member for the last 3 years. If you meet this criterion, you can withdraw your kiwi saver (including tax credits), apart from $1,000 which must remain in the account.
You must intend to live in the property. The funds can only be used to purchase an owner-occupied property, not a rental investment property.
If you transfer your Aussie Super to KiwiSaver, you cannot withdraw your Australian contributions. You can only withdraw the investment returns once back in NZ.
How to apply for a first-home withdrawal? – As a first-home buyer, the first step is to contact your KiwiSaver provider to check you balance and obtain email confirmation on how much you have available to withdraw for a first home purchase.
You can only with draw from your kiwi saver once, so when you apply the funds will be credited into your solicitor’s trust account. The funds can be used for the upfront deposit and/or final settlement funds for your new home.
Your solicitor will assist with the kiwi saver withdrawal application forms and submit the completed forms to your kiwi saver provider. The funds will then be credited to your solicitor’s trust account and dispersed as required.
Some solicitors charge for this service while others will do it as part of the conveyancing.
First Home Grant – If you’re a first-time home buyer, or a previous homeowner and you’ve been making regular KiwiSaver contributions for 3 – 5 years, you may be eligible for the gov’ts First Home Grant for funding of up to $10,000.
You will submit your grant application online through Kāinga Ora – Homes and Communities website https://kaingaora.govt.nz/
If you buy an existing home – If you buy an existing home, you can get $1,000 for each year you’ve paid into the scheme to a maximum of 5 years. The maximum grant of up to $5,000 is available.
If you buy a new home or land – If you buy a new home (unlived in) or land to build on, you can get $2,000 for each year you’ve paid into the scheme to a maximum of 5 years. The maximum grant of up to $10,000 is available.