For many first-time home buyers, KiwiSaver can be a powerful financial tool that opens doors to homeownership. In this blog post, we’ll delve into what KiwiSaver is, the advantages it offers to first home buyers, and the step-by-step process of utilising KiwiSaver funds for purchasing your first home.

What is KiwiSaver?

KiwiSaver is a voluntary retirement savings scheme designed to help Kiwis save for their future. It offers a range of benefits, including contributions from both individuals and employers, government contributions such as the member tax credit, and the potential for investment growth over time. One of the key features of it is the ability to withdraw funds for specific purposes, such as buying your first home or retirement.

Benefits of Using KiwiSaver for Buying Your First Home

  • Building a Larger Deposit: One of the primary benefits of KiwiSaver for first home buyers is the opportunity to accumulate a larger deposit. Regular contributions, along with employer contributions and government contributions like the member tax credit, can significantly boost your savings over time. This larger deposit can improve your chances of securing a mortgage with favourable terms.
  • Access to Government Contributions: KiwiSaver members may be eligible for various government contributions that further enhance their savings. Additionally, for eligible first home buyers, the First Home Grant offers financial assistance towards the purchase of a new home or land for building a new home.
  • Flexibility in Using KiwiSaver Funds: One of the unique aspects of KiwiSaver is the flexibility it offers in using your savings. For first home buyers, you can access your funds to contribute towards your deposit or use them for other related expenses, such as legal fees and property inspections. This flexibility can make the home buying process more manageable and affordable.

How to Use Your KiwiSaver When Buying Your First Home

  1. Obtain a First Home Withdrawal Letter: Start by requesting a first home withdrawal letter from your KiwiSaver provider. This letter details the amount available for your first home purchase. Remember that a minimum balance of $1,000 NZD must remain in your account after withdrawal.
  2. Complete the First Home Buyer Application Form: Work closely with your solicitor to complete the first home buyer application form. This form is essential for accessing your funds and ensuring a smooth transaction.
  3. Submit Your Application: Once you have a conditional offer accepted on a property, your solicitor will submit the first home buyer application to your KiwiSaver provider. The provider will review the application and provide approval if all requirements are met.
  4. Decide on Deposit or Settlement Use: Decide whether to use your funds as part of your deposit or at settlement. While it’s typically recommended to use KiwiSaver at settlement, there may be circumstances where using it as part of your cash deposit is necessary.

Ready to make the most of your KiwiSaver for buying your first home? Schedule a meeting with our team today to receive personalised advice and guidance tailored to your specific needs and goals.


Everything shared in this blog post is general financial advice. For financial advice tailored to you, please book a kōrero with us.