If you’re looking at purchasing your first home, using your KiwiSaver fund is a fantastic way to get a head start toward your deposit. I thought it may be worthwhile just covering some of the rules for individuals who are struggling to keep up with some of the changes as they happen. As I write this in 2018, the current rules are as follows:
Withdrawing KiwiSaver:
I’m a strong advocate of being a KiwiSaver member because of the returns you get – the Government matches you at 50 cents on the dollar up to $1,042.86. This means that every year if you contribute at least this amount, you’ll get $521.43. I don’t know any other investment that guarantees a 50% return.
In addition to this your employer contributes to your KiwiSaver too – up to 3% of your earnings in most cases – is my understanding.
Based on the above you’re getting $1.50 for every dollar contribution you make (assuming you’re making a 3% contribution) up to $1,042.86, and $1 for $1 every dollar thereafter!
KiwiSaver HomeStart Grant:
There are two types:
1. For existing property purchases – the grant is between $3,000 and $5,000 based on $1,000 per year of KiwiSaver membership.
2. For new property purchases, the above is doubled (between $6,000 and $10,000) based on $2,000 per year of KiwiSaver membership.
The above figures are per KiwiSaver contributor, so if you’re in a couple and purchasing a home together, these figures are doubled again. The maximum contribution however, toward a single dwelling – regardless of the number of KiwiSaver contributors is $10,000 per existing home and $20,000 per new home, so if you are 3 or more people purchasing a home, you will only receive the benefits as if you were 2 (assuming all had been in for 5 years).
The rules to getting access to this are as follows – you must;
Another key thing to check is if the property is eligible - mainly this relates to house price caps as follows:
If you’ve got any other questions and are still uncertain about accessing Kiwisaver – feel free to get in touch.