Can I use my KiwiSaver to buy a first home?
Yes. KiwiSaver can be used to buy a first home, but there are restrictions.
Can I use my KiwiSaver to buy land?
Yes, you can use your KiwiSaver to buy land. But, again, there are restrictions.
How to use KiwiSaver to buy your first home
If you’ve money in KiwiSaver, you can withdraw almost all your investments to put towards a first-home deposit.
In order to be eligible, you must:
- Have had KiwiSaver for at least three years
- Be a first home buyer (FHB), or be in a similar financial position to a FHB
- Purchase a house (or land) in New Zealand
- Live in the house (it can’t be used as an investment property)
- Leave a minimum of $1000 in your KiwiSaver
- Not have used your KiwiSaver for a first home withdrawal in the past
While this provides an overview of the withdrawal criteria, it pays to talk to your lender and/or KiwiSaver provider to ensure you’re eligible.
It’s also important to note that not all schemes permit withdrawing funds for this purpose. So, you’ll need to check with your KiwiSaver provider and, if they don’t allow withdrawals, you may need to look into switching providers.
How to use KiwiSaver to buy land
Using your KiwiSaver to buy land is similar to using it to purchase a first home. You must:
- Buy land in New Zealand with the intention of building a first home on the property that you will live in.
- Intend to live in the home. It can’t be for an investment property.
Note that your funds can only be used to purchase the land, and not to pay for the construction of the dwelling.
While there’s no required timeframe for the build to be completed, to be eligible you may be required to have a concept plan. So if you intend to use your KiwiSaver investments to purchase land, discuss your plans with your provider.
Are there any limits on income or property price?
No, there are no property price caps. Additionally, there are no earning limits. So, high earners can use their KiwiSaver investments to purchase expensive homes.
Can KiwiSaver be used for an investment or second property?
No. KiwiSaver cannot be used if you already own a property. It must be for a first home. Additionally, even if the property is your first home, it can’t be bought as an investment property.
When you apply for a KiwiSaver first-home withdrawal, you must sign a legal document that states that the dwelling will be your primary residence.
Of course, down the line, if your situation changes, you’ll be able to lease out the property.
I’ve owned a house in the past. Can I use my KiwiSaver for a house deposit?
Possibly. If you’ve previously owned a home, but no longer do, and your finances are considered to be similar to those of a FHB, you may qualify to use your KiwiSaver as a deposit.
However, you can only access your KiwiSaver to purchase a home once. So if you’ve already dipped into your KiwiSaver to buy a home, you won’t be able to repeat the process.
You can read more about being an eligible previous home owner here.
What else is on offer to help me get my first home?
The First Home Loan is a financial support program offered by Kāinga Ora. Most lenders currently require a minimum 20% deposit for a home. But with a First Home Loan you only need a 5% deposit. This is because Kāinga Ora underwrites the loan, allowing lenders to provide loans that would otherwise sit outside their lending standards.
First Home Loans are issued by several lenders, including: ASB, Kiwibank, SBS Bank, The Co-operative Bank, Westpac and Unity.
Can anyone get the First Home Loan?
No, to be eligible for the First Home Loan you must meet strict criteria. So it’s not for everyone. Below is an overview of the key requirements:
- Income cap – a maximum yearly income of up to $95,000 (before tax) for one person. A combined maximum yearly income of up to $150,000 (before tax) for two or more applicants, or a maximum yearly income of $150,000 for an individual buyer with one or more dependants
- Minimum deposit – a minimum 5% of the purchase price of the house you want to buy
- You must live in the home you buy – a First Home Loan cannot be used to buy an investment or rental property
- You need to pay Lender’s Mortgage Insurance + any loan application fees – this premium is 1.2% of the loan amount and is usually added onto your mortgage.
- FHBs only – or you can be a previous homeowner who is in a similar financial position to a typical first home buyer
- You must be an NZ citizen – or permanent NZ resident or a resident visa holder who is ordinarily resident in NZ
- Small(ish) property – must be purchasing a property of less than one hectare
- Not own any other property or land – this does not include ownership of Māori land
You can get more details from the Kāinga Ora website here.
Compare KiwiSaver Providers with Canstar
The comparison table below displays some of the products currently available on Canstar’s database for a KiwiSaver member with a balance of $50,000 in an Aggressive fund, sorted by Star Rating (highest to lowest), followed by company name (alphabetical) – some products may have links to providers’ websites. Use Canstar’s KiwiSaver comparison selector to view a wider range of super funds. Canstar may earn a fee for referrals.
So if you’re looking for the best KiwiSaver, don’t just focus on fees and charges. Do your research, compare providers and look for the provider that best matches your appetite for risk and your long-term goals.
If you want to read more about our latest KiwiSaver Awards, click on the button below.
Compare KiwiSaver providers for free with Canstar!
About the author of this page
Bruce Pitchers is Canstar NZ’s Editor. An experienced finance reporter, he has three decades’ experience as a journalist and has worked for major media companies in Australia, the UK and NZ, including ACP, Are Media, Bauer Media Group, Fairfax, Pacific Magazines, News Corp and TVNZ. As a freelancer, he has worked for The Australian Financial Review, the NZ Financial Markets Authority and major banks and investment companies on both sides of the Tasman.
In his role at Canstar, he has been a regular commentator in the NZ media, including on the Driven, Stuff and One Roof websites, the NZ Herald, Radio NZ, and Newstalk ZB.
Away from Canstar, Bruce creates puzzles for magazines and newspapers, including Woman’s Day and New Idea. He is also the co-author of the murder-mystery book 5 Minute Murder.
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