Kiwisaver

Using KiwiSaver to purchase your first home

Using your KiwiSaver funds to buy a property can be a great way to achieve your goal of owning a home in New Zealand. KiwiSaver allows members to withdraw their savings for a first home purchase, under certain conditions.

One big perk is that you can use not just your own contributions, but also those made by your employer, plus any government contributions you have earned. This combined sum can make a significant dent in your deposit, which means you might need to borrow less money from the bank and potentially save on mortgage costs.

However, there are rules to follow. You need to have been a KiwiSaver member for at least three years, plan to live in the property, and it must be your first home.

Applying for the withdrawal involves a process, so it is important to understand the steps to avoid any delays or penalties.

Also, if your KiwiSaver funds have been paid out and the deal falls through for any reason, you will need to repay the KiwiSaver funds back to your KiwiSaver provider. It is therefore recommended that if you are using your KiwiSaver funds to pay for the deposit, your agreement should provide that the deposit can only be released to the vendor on the settlement date.

For any assistance with purchasing your first home using your KiwiSaver or for any other legal issues you can contact Kemp Barristers & Solicitors at info@kempsolicitors.co.nz or 09 412 6000.