First Home Buyer's Complete Guide to KiwiSaver

What is the KiwiSaver First Home Withdrawal?

If you've been a KiwiSaver member for at least three years, you may be able to withdraw most of your savings to put towards buying your first home. This isn't a loan — it's your own money, contributed over time by you and your employer — and you don't have to pay it back.

For many New Zealanders, KiwiSaver is the single biggest chunk of their deposit. Getting this right matters.

Who is eligible?

To withdraw your KiwiSaver for a first home, you must meet all of the following:

• You've been a KiwiSaver member for at least 3 years
• You're buying your first home — or you've owned a home before but qualify under the "second chance" criteria (more on that below)
• You intend to live in the property — KiwiSaver withdrawals can't be used for investment properties
• The property is in New Zealand

Second chance buyers

If you've previously owned property but are in a similar financial position to a first home buyer, you may still qualify. This is assessed by Housing New Zealand (Kāinga Ora) on a case-by-case basis. The key question is whether your assets and income are comparable to what would be expected for someone who has never owned a home. This is worth exploring — many people don't realise they're eligible.

How much can you withdraw?

You can withdraw everything in your KiwiSaver account except $1,000, which must remain in the fund. This includes your own contributions, your employer's contributions, and any government contributions received over the years.

You cannot withdraw returns or growth separately — it all comes out together as a single balance minus that $1,000.

The First Home Grant (no longer available)

As of May 2024, the First Home Grant has been discontinued by the New Zealand Government. If you were counting on this top-up of up to $10,000, it's no longer available. Your KiwiSaver withdrawal itself is unaffected — that still operates as normal.

How to apply for your KiwiSaver withdrawal

The process typically goes like this:

1. Get a signed Sale and Purchase Agreement — you need a property under contract before you can apply.
2. Contact your KiwiSaver provider — each provider has its own application form and process.
3. Submit the paperwork — you'll typically need your ID, the S&P agreement, and a solicitor's letter confirming the purchase.
4. Allow 10–15 working days — your provider will transfer the funds directly to your solicitor's trust account in time for settlement.

Your mortgage adviser will coordinate the timing with your lawyer to make sure everything lines up with your settlement date. Don't leave this until the last minute.

Using KiwiSaver alongside other deposit sources

Most first home buyers combine their KiwiSaver withdrawal with other savings. Your lender will want to see your total deposit add up to at least 10–20% of the purchase price, depending on which bank and loan type you're using.

The First Home Loan (underwritten by Kāinga Ora) still exists and allows eligible buyers to purchase with as little as a 5% deposit, using participating lenders including ANZ, ASB, BNZ, Westpac, Kiwibank and others. Income caps apply.

Common mistakes to avoid

• Applying too late. You need time for your provider to process the withdrawal before settlement. Start the paperwork as soon as your offer is accepted.
• Assuming you can use it for an investment property. You can't. The property must be your principal place of residence.
• Forgetting the $1,000 minimum balance. Your provider won't send every last cent — $1,000 stays in your account to keep it active.
• Not checking your contribution history. Some people find they haven't been contributing consistently, which affects how much is available.

What if I'm buying with a partner?

If you're purchasing with a partner or co-buyer, both of you can make a KiwiSaver withdrawal — as long as you each individually meet the eligibility criteria. This can significantly boost your combined deposit. Each person applies separately through their own provider.

Next steps

KiwiSaver is just one piece of the puzzle. The best time to talk to a mortgage adviser is before you start making offers — so you know exactly where you stand on deposit, borrowing power, and which lenders suit your situation.