Your KiwiSaver balance can be one of your most valuable tools when saving for a first home. Understanding exactly how to access these funds—and maximizing the amount you can withdraw—makes a significant difference to your deposit size and borrowing capacity.
What You Can Withdraw from KiwiSaver
Understanding what's available helps you plan your deposit accurately.
Available Funds:
- All of your contributions (employee, employer, and government)
- All investment returns on those contributions
- First Home Grant (if eligible): up to $5,000 individual / $10,000 couples
Must Remain:
- $1,000 minimum balance must stay in your KiwiSaver account
- You cannot withdraw the $1,000 kick-start (if you received it when KiwiSaver launched)
KiwiSaver Withdrawal Eligibility
| Requirement | Details | Exceptions |
|---|---|---|
| First Home Buyer | Never owned property in NZ or elsewhere | Relationship property division may qualify |
| Membership Length | Minimum 3 years in KiwiSaver | No exceptions |
| Property Use | Must be your primary residence | Cannot use for investment or second homes |
| Price Caps | Property meets regional caps (if using Welcome Home Loan) | Only applies to First Home Grant/Welcome Home Loan |
Eligibility Requirements
For First Home Withdrawal:
- Must be a first home buyer (never owned property in NZ or elsewhere)
- Been in KiwiSaver for at least 3 years
- Property will be your primary residence
- Property meets price caps for your area (if using Welcome Home Loan)
Exception - Previous Owners: You may still qualify if you previously owned but experienced relationship property division, or you're in similar circumstances as someone who's never owned property.
How to Withdraw KiwiSaver for Your First Home
Accessing your KiwiSaver requires following a specific process with strict timing requirements.
Step 1: Confirm Your Eligibility (2-3 Weeks Before Applying) Check your KiwiSaver balance with your provider through their online portal or app. Confirm you've been a member for 3+ years by checking your membership start date. Calculate what you can withdraw (total balance minus $1,000 minimum). Check First Home Grant eligibility on the Kāinga Ora website using their eligibility calculator.
Step 2: Find Your Property You can only withdraw KiwiSaver when you have a property under contract. The property must be identified with a signed sale and purchase agreement (conditional). You cannot withdraw funds "just in case" or to go house hunting. This requirement protects both you and the KiwiSaver system.
Step 3: Apply for First Home Grant (If Eligible) Before withdrawing KiwiSaver funds, complete your First Home Grant application. Complete the online application at the Kāinga Ora website. Provide proof of income, KiwiSaver membership, and property details. Processing takes 10-15 working days, so apply early. The grant pays directly to your solicitor at settlement, not to you.
Step 4: Apply to Withdraw KiwiSaver Funds Once you have a property under contract, contact your KiwiSaver provider immediately. Complete their withdrawal application form (usually available online). Provide required documentation: sale and purchase agreement, proof of identity, solicitor details, and evidence of first home buyer status. Some providers accept digital applications while others require physical documents.
Step 5: Await Approval (10-15 Working Days) Your provider assesses your application against KiwiSaver Act requirements. They may request additional information if anything is unclear. Once approved, they send confirmation to you and your solicitor. Build this timeframe into your settlement conditions (typically 6-8 weeks gives comfortable margin).
Step 6: Funds Transferred at Settlement Approved funds transfer directly to your solicitor's trust account, typically 2-3 days before settlement. Your solicitor uses these funds as part of your deposit and settlement payment. Funds cannot be paid to you directly—they must go through your solicitor for property purchase.
Maximizing Your KiwiSaver Withdrawal
Strategic planning increases the amount you can access for your deposit.
Timing Strategies:
- Delay purchase to stay in KiwiSaver longer (more contributions and growth)
- Increase contributions in the years before buying
- Time purchase after employer contributions hit your account
Contribution Optimization:
- Contribute at least $1,042.86 annually for full government contribution
- Consider increasing to 8-10% to accelerate growth
- Make voluntary contributions if you can afford it
Fund Selection:
- Growth funds typically return more over 5+ years
- Switch to conservative/balanced 2-3 years before buying to protect gains
- Rebalance based on market conditions
Partner Coordination: If buying with a partner:
- Both can withdraw their KiwiSaver
- Each needs 3+ years membership
- Can combine for larger deposit
Common KiwiSaver Withdrawal Scenarios
Scenario 1: Solo First-Home Buyer
- Property price: $650,000
- 10% deposit needed: $65,000
- KiwiSaver balance: $45,000
- First Home Grant: $5,000
- Cash savings needed: $15,000
Scenario 2: Couple Buying Together
- Property price: $850,000
- 10% deposit needed: $85,000
- Partner 1 KiwiSaver: $38,000
- Partner 2 KiwiSaver: $52,000
- First Home Grant: $10,000
- Cash savings needed: $0 (surplus for costs)
Scenario 3: Previously Owned, Now Buying Again
If you've owned property before, you typically cannot use KiwiSaver, unless:
- Relationship property division left you without property
- You're in similar circumstances to someone who hasn't owned property
- Requires Kāinga Ora assessment on case-by-case basis
What Happens If the Purchase Falls Through
If sale doesn't proceed:
- Contact your KiwiSaver provider immediately
- Funds remain in solicitor's trust account temporarily
- Can be redeposited to your KiwiSaver or held for next purchase
- May be able to use for another property within reasonable timeframe
Important Limitations and Considerations
Cannot Use For:
- Investment properties
- Second homes or holiday homes
- Property you won't live in
- Commercial property
Future Implications:
- Reduces your retirement savings significantly
- Missing out on compound growth on withdrawn amount
- Consider increasing contributions post-purchase to catch up
Tax Implications:
- KiwiSaver withdrawals are not taxable
- First Home Grant is not taxable income
First Home Grant Details
Eligibility:
- Same as KiwiSaver withdrawal requirements
- Income caps apply: $95,000 individual, $150,000 combined (before tax)
- Property price caps: Auckland $875,000, main centers $650,000, elsewhere $650,000
- Must buy from developer (new build) or existing home
Grant Amounts:
- For existing properties: $1,000 per year of contributions (max $5,000 individual, $10,000 couples)
- For new builds: $2,000 per year of contributions (max $10,000 individual, $20,000 couples)
First Home Grant Eligibility and Amounts
| Property Type | Grant Per Year | Maximum Individual | Maximum Couple | Income Cap (Individual) | Income Cap (Couple) |
|---|---|---|---|---|---|
| Existing Home | $1,000 | $5,000 | $10,000 | $95,000 | $150,000 |
| New Build | $2,000 | $10,000 | $20,000 | $95,000 | $150,000 |
Frequently Asked Questions
Q: How much KiwiSaver can I withdraw for my first home? A: You can withdraw your entire balance minus $1,000 (and minus the $1,000 kick-start if you received it). This includes all contributions and investment returns.
Q: Do I have to pay back the KiwiSaver withdrawal? A: No, it's a permanent withdrawal. You don't repay it, but you should consider increasing contributions later to rebuild retirement savings.
Q: Can I use KiwiSaver for a deposit on an apartment? A: Yes, as long as it meets all other criteria (your first home, you'll live there, price within caps if using First Home Grant).
Q: What if my partner isn't a first-home buyer? A: They cannot withdraw their KiwiSaver for the purchase. Only eligible first-home buyers can access funds.
Q: Can I withdraw KiwiSaver before finding a property? A: No, you must have a signed sale and purchase agreement before applying to withdraw funds.
Q: How long does KiwiSaver withdrawal take? A: Typically 10-15 working days from application to approval. Plan accordingly and apply early in your settlement period.
Q: What happens to my KiwiSaver after I withdraw for a house? A: Your account remains open with the minimum $1,000 balance. You continue making contributions (or can restart them), and you can still access the government contribution by contributing at least $1,042.86 annually.
Q: Can I use KiwiSaver for renovations or building costs? A: Only if you're purchasing the property. KiwiSaver funds must be used for the property purchase itself, not for renovations after you own it.
Q: What if I'm self-employed—can I still use KiwiSaver? A: Yes, as long as you've been a KiwiSaver member for 3+ years and meet other eligibility requirements. Self-employed people can contribute voluntarily to KiwiSaver.
