With house prices in Tauranga at record-high levels, saving for your first home is more challenging than ever. The good news is that, if you’ve been contributing to KiwiSaver, you can use those funds to help you meet the deposit requirements.
To gain access to your KiwiSaver funds for a first home deposit, there are some conditions you need to meet:
To withdraw your funds, you’ll need to contact your KiwiSaver provider. You can make your withdrawal at the time you pay the initial deposit on your home, or at the date of settlement.
KiwiSaver account holders may also be eligible for the KiwiSaver HomeStart grant offered by Housing New Zealand. To qualify for a HomeStart grant, you will need to be:
Depending on how long you’ve been contributing to your KiwiSaver account, you could be eligible for a grant of between $3,000 and $5,000 (for an existing home) or $6,000 and $10,000 (for a new home). The grants are calculated at $1000 (or $2000 for new buildings) per year of membership, to a maximum of five years. If you’re a couple buying your first home together and you both meet the eligibility criteria, you may be able to combine your grants.
At Best Mortgages, we can help you work out if your KiwiSaver account can help you buy your first home.