How does Kiwisaver first home withdrawal work?

You’ll need to tick a few boxes to be eligible to use your Kiwisaver to buy your first home:

• You are buying a home or piece of land in New Zealand. 

• This is your first time buying a home or piece of land;

• Or, if you have bought a home or piece of land before, you must no longer own the property and are in a similar financial position to first home buyers. If you have bought property before you’ll need to fill out this form via Kāinga Ora to find out if you’re still eligible.

• You have never withdrawn funds from Kiwisaver to buy property. 

• You plan to live in the home you buy or build for at least six months. 

• Have your Kiwisaver account with a provider that allows fund withdrawals.

If you meet all of the above criteria then you can withdraw the entire contents of your Kiwisaver except for the $1,000 government payment, any Australian superannuation that you’ve transferred and any government contributions received during any period you didn’t have permanent residence in NZ. 

Generally, you can apply to withdraw your Kiwisaver if you have a conditional sale and purchase agreement signed and ready to go (or, in other words, when you’ve had an offer on a house accepted). To apply, you’ll need to either contact your Kiwisaver provider or fill out the ‘apply to withdraw’ form on their website. 

Documents and information you’ll need to apply:

• Valid photo identification (passport or national ID card). 

• Accepted proof of address.

• A signed sale and purchase agreement that lists you as the purchaser. 

• A completed first home withdrawal form. The signing of this may need to be witnessed by a Justice of the Peace or a lawyer who is authorised to take statutory declarations.

• A letter of undertaking from your solicitor.

• A bank deposit slip for your solicitor’s trust account. 

• If you’ve previously owned a home you'll need to supply an eligibility confirmation letter from Kāinga Ora.

Once you’ve made your application it’s a good idea to give your Kiwisaver provider a call to make sure they’ve received it. Once they have processing times will vary - but most providers will process an application in under 10 working days (or 15 working days if you’ve lived overseas while you were a member of Kiwisaver). 

If your Kiwisaver funds aren’t ready on the day the sale and purchase agreement goes unconditional, you won’t be able to use them for your purchase deposit. And, if you’re planning to use those funds to go towards the purchase price you won’t be able to use them at all if you haven’t received them before settlement date. They will be locked away until you retire. 

If this happens, your only option is to either: 

• Find a way to cover the shortfall in price to complete settlement. 

• Negotiate a delayed settlement and pay penalty interest.

• Pull out of the house purchase and pay the vendor penalties. 

That’s why it’s so important to leave as much time as possible between when you apply for the funds and when you need them (unconditional or settlement date). Talk to your solicitor and your provider to make sure your timing will work out. 

To withdraw your Kiwisaver to buy a first home you’re required to intend to live in the home for a minimum of six months. Generally, you can’t rent the entire property out during this period unless your circumstances change, but it’s fine to rent out rooms in the home as long as you live there.