KiwiSaver First Home Withdrawal: How It Works in NZ
If you have been a KiwiSaver member for at least 3 years, you can withdraw almost all of your balance to put towards your first home, as long as at least $1,000 stays in the account. This guide covers how much you can take out, who qualifies, and how the money reaches your solicitor at settlement.
Talk to a First Home AdviserWhat is a KiwiSaver first home withdrawal?
A KiwiSaver first home withdrawal lets you take almost all of your KiwiSaver savings out to buy your first home. If you have been a member for at least 3 years, you can withdraw your contributions, your employer's contributions, government contributions, and any investment returns, leaving a minimum of $1,000 in the account.
For most first home buyers in New Zealand, this is the single biggest lump sum they put towards their deposit. It is separate from your regular savings, and you can use it alongside gifted funds from family and the low deposit First Home Loan scheme.
The withdrawal is administered by your KiwiSaver provider, with eligibility overseen by Kāinga Ora. The money is not paid to you directly. It goes to your solicitor and is applied at settlement.
How much of your KiwiSaver can you withdraw?
You can withdraw nearly your entire balance towards your first home. There is no maximum dollar cap set by the scheme. The only hard limit is the minimum that must stay behind.
At least $1,000 has to remain in your KiwiSaver account. Any funds transferred in from an Australian superannuation scheme also cannot be withdrawn.
So if your balance is $28,000, you could withdraw up to $27,000 and put it straight towards your first home. Your provider confirms your exact withdrawable amount when you apply.
Who is eligible for a KiwiSaver first home withdrawal?
To withdraw your KiwiSaver for a first home, you generally need to meet all three of the following.
If you have previously owned a home or land but no longer do, and Kāinga Ora assesses your realisable assets as being in the same position as a first home buyer, they can issue a letter confirming you are eligible. If you currently own a home, land, or a share in a property, you will not be eligible (Māori land is treated differently).
Source: Kāinga Ora, KiwiSaver first home withdrawal. Individual eligibility can vary, so confirm your situation with your KiwiSaver provider and Kāinga Ora.
How the withdrawal works, step by step
From checking your balance to settlement day, here is the order it happens in.
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Check your membership length and balanceConfirm you have hit 3 years of membership and ask your provider what your withdrawable balance is.
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Get your finance sorted firstLine up your home loan pre-approval so you know your price range before you commit to a property. This is where we help.
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Apply through your KiwiSaver providerOnce you have a signed sale and purchase agreement, apply to your provider. They confirm eligibility and the amount, and may ask Kāinga Ora to verify a second chance application.
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Funds go to your solicitorThe money is paid to your lawyer or conveyancer, not to you. Allow enough time, as providers typically need around 10 working days to process.
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Applied at settlementYour KiwiSaver is combined with your other deposit funds and the loan, and the purchase settles.
If you plan to buy within the next 1 to 2 years, a growth fund can fall in value at the wrong moment. Many buyers switch to a conservative or cash fund as they get close, so the deposit does not shrink just before you need it. Talk to your provider or a financial adviser about the right fund for your timeline.
KiwiSaver first home withdrawal FAQs
Almost all of it. You can withdraw your contributions, your employer's contributions, government contributions, and investment returns, as long as at least $1,000 stays in the account. There is no maximum dollar cap. Funds transferred from an Australian super scheme cannot be withdrawn.
At least 3 years (36 months) as a contributing KiwiSaver member. The 3 years does not have to be with the same provider, and it counts from when you first started contributing.
No. A first home withdrawal can only be used for a home you intend to live in. It cannot be used for a rental or investment property.
Possibly, under the second chance rule. If you no longer own property and Kāinga Ora assesses you as being in the same financial position as a first home buyer, they can approve your withdrawal. If you currently own a home or land, you are not eligible.
Your provider pays the funds to your solicitor on or before settlement day, not to you directly. Providers commonly need around 10 working days to process, so apply as soon as your purchase is confirmed.
Yes. Many first home buyers use their KiwiSaver withdrawal as part of the deposit and combine it with the First Home Loan, a scheme that lets eligible buyers purchase with as little as a 5% deposit. We can check whether you qualify for both.
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