WHAT IS KIWISAVER?
KiwiSaver is a voluntary savings scheme that can help you save for retirement and can also help you towards the purchase of your first home.
You will automatically be enrolled into KiwiSaver if (unless you specifically choose not to join):
You are eligible to be enrolled
You are starting work with a new employer; and
Between the ages of 18 and 65.
If you are already employed but are not enrolled in KiwiSaver you can join through your employer or through the KiwiSaver provider of your choice.
AM I ELIGIBLE TO WITHDRAW MY KIWISAVER FOR MY FIRST HOME?
You will be eligible to withdraw your funds for your first home if:
You have been a KiwiSaver member for a minimum of three years and are making regular contributions to KiwiSaver.
You intend to live in the property (or have the intention to live in the property) that you are using your KiwiSaver funds to purchase.
You have never owned a house before (there are some circumstances where you might be able to – please refer below).
You are buying a home in New Zealand.
CAN I USE MY KIWISAVER IF I AM A PREVIOUS HOMEOWNER?
You may also qualify to withdraw your funds if you have previously owned property and are in a similar financial position to a first-home buyer. Before you apply for your Kiwisaver, you will need to apply for special approval from Kāinga Ora. This can take a little longer, so be sure to allow more time than usual.
CAN I USE MY KIWISAVER TO BUY A HOUSE AND LAND PACKAGE
Yes, you will just need to ensure you comply with the terms of the eligibility list above – for example, you need to purchase the land with the intent to build a house that you will live in.
HOW MUCH OF MY KIWISAVER CAN I WITHDRAW?
When purchasing your first home, you can withdraw all your KiwiSaver funds apart from $1,000.00 which must remain in your account.
CAN I USE MY KIWISAVER IF I WANT TO BUY UNDER A COMPANY OR TRUST?
It depends, each KiwiSaver provider has slightly different terms for the withdrawal. We suggest checking your KiwiSaver provider form carefully and talking to your solicitor if you are thinking of purchasing your first home under a company or trust.
CAN I USE MY KIWISAVER IF MY PARTNER HAS OWNED PROPERTY BEFORE?
Yes, if it is your first home you can use your KiwiSaver to the contribution even if your partner has already owned a home before.
CAN I USE KIWISAVER TO PAY FOR MY DEPOSIT?
You can use your KiwiSaver to pay for your deposit or to pay for the balance purchase price if you already have enough for the deposit the KiwiSaver can go towards the balance of the purchase price.
HOW DO I WITHDRAW MY KIWISAVER FUNDS?
Once you have a signed sale and purchase agreement in place, you can begin the process of withdrawing your KiwiSaver funds:
Firstly, you will need to contact your KiwiSaver provider to confirm that you are eligible to make a first home withdrawal.
2. You will need to complete a KiwiSaver withdrawal form with your solicitor who then sends the completed application to your provider.
3. The solicitor will request for the funds to be withdrawn, so they can be used toward the deposit or the settlement amount.
Once your application has been processed and approved, the funds are then paid to your solicitor’s trust account which is then used to contribute towards the purchase of your first home.
If you are considering purchasing a first home and would like to discuss withdrawing your KiwiSaver funds, please do not hesitate to contact either Jamelle Keatley jamelle@iclaw.com or Gemma Martin gemma@iclaw.com or call (07) 929 4300 to make an appointment.