KiwiSaver First Home Withdrawal

Can You Withdraw KiwiSaver for a First Home?

Yes — one of the main benefits of KiwiSaver is the ability to withdraw most of your savings to buy your first home. This is known as a first home withdrawal.

The 3-Year Rule

You must have been a member of KiwiSaver for at least 3 years before you can withdraw funds. The 3 years don't need to be consecutive — if you've had gaps in contributions, that's fine.

Minimum Member Contribution

To be eligible, you need to have made the minimum member contribution for at least 3 of the last 4 years. For most people this means contributing at least 3% of your gross salary. If you're self-employed or not working, the minimum is $1,200 per year.

How Much Can You Withdraw?

• Most of your savings: You can withdraw your member contributions, your employer contributions, and any investment returns
• What you CANNOT withdraw: The Government Contribution (the $521.43 per year "kick-start" payments) — this must stay in your account for retirement
• KiwiSaver First Home Grant: Withdrawal and grant are separate — you can access both

Step-by-Step Process

1. Check eligibility with your KiwiSaver provider or through the IRD website
2. Get a solicitor or conveyancer — they will handle the paperwork
3. Apply to your KiwiSaver provider for a "home withdrawal" — you'll need signed sale and purchase agreement (or an offer)
4. Funds are transferred directly to your solicitor's trust account, not to you personally
5. Funds used at settlement — your solicitor applies the KiwiSaver withdrawal toward your deposit and purchase

Important Rules

Owner-Occupier Requirement

You must intend to live in the property. Investment properties do not qualify for KiwiSaver withdrawal.

Previous Home Ownership

Generally, you cannot withdraw KiwiSaver for a home if you've owned property before. Exceptions exist if you're in a similar financial position to a first-home buyer.

Time Limit

Once your withdrawal request is approved, you typically have 3 months to settle the purchase. If the sale falls through, the withdrawal is cancelled and you can reapply.

Tax Implications

KiwiSaver first home withdrawals are tax-free in NZ. No income tax or GST applies.

Combining with Other Schemes

You can combine your KiwiSaver withdrawal with:

• First Home Grant — up to $10k/$20k non-repayable grant
• First Home Partner — shared equity with Kāinga Ora
• Regular bank lending — KiwiSaver funds boost your deposit