Keeping your KiwiSaver topped up and putting money aside has become almost synonymous with working. Stashing money with your KiwiSaver provider has benefits, though. The chief of these is that you'll become eligible for a first home grant if you've been diligent about it.
Your KiwiSaver can benefit you in two ways if you're buying your first home. You can take money out from your KiwiSaver and to use it towards buying a house. This means that instead of coming up with all of the deposit for your dream home from scratch, you can draw on funds that you already had saved up with the government.
Secondly, you can get up to $10,000 from the government for the purposes of the above purchase. This amount will change depending on the type of land or house you are wanting to buy.
Can you use your KiwiSaver funds?
You have to meet a few main criteria to be able to withdraw from your KiwiSaver to buy a home.
You must be buying your first home
You need to have been contributing to your KiwiSaver for at least 3 years
You have to leave $1,000 in your KiwiSaver account post-withdrawal
Finding out how much you can withdraw is simple: the funds available to you will include interest, money you've paid to KiwiSaver, money your bosses have paid to KiwiSaver, and money the government has paid to your KiwiSaver less $1,000.
How to apply for a KiwiSaver withdrawal
Applying to use your KiwiSaver funds for a first home purchase is pretty easy - you need to get in touch with your KiwiSaver provider. If you've engaged a mortgage broker, then they should be able to help you action this as part of your overall finance approach to buying your property.
You'll have forms to fill out from your KiwiSaver provider, and once you submit those you'll be updated through your solicitor about how those funds can be accessed and used. You'll often have the option of using the funds either for your deposit or the settlement of your house, and you'll be able to specify that when you're going through the withdrawal process.
Getting these forms together can be a process with your KiwiSaver provider, so make sure that you're submitting them through your lawyer at least 10 working days before you're going to need the money. If you want to use it for your deposit, those are often due quite early on in the purchase process so make sure that you're taking this into account.
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