Using Your KiwiSaver for Your First Home: Rules, Paperwork and Timing

Guides

For most first home buyers in New Zealand, KiwiSaver is the biggest part of the deposit. The rules are simpler than people expect: if you have been a member for at least three years, you can usually withdraw everything except $1,000 to buy a first home you will live in.

Where people get caught out is the timing. The money is paid to your lawyer on or before settlement day, not when you sign an agreement or go unconditional. If you plan for that from the start, it is straightforward.

Who can make a first home withdrawal

• You have been a KiwiSaver member for at least three years
• You do not already own a home, land or a share in a property (Māori land is treated differently)
• You intend to live in the property. It cannot be an investment
• You have not made a first home withdrawal before

If you have owned a home before, you may still qualify as a previous home owner if you are now in a similar financial position to a first home buyer. In that case you apply to Kāinga Ora first for a letter confirming it, then send that letter to your KiwiSaver provider with your application.

How much you can take out

You can withdraw your own contributions, your employer’s contributions, the government contributions and the investment returns on all of it. Two things stay behind:

• $1,000 must remain in your account
• Any money you transferred in from an Australian complying superannuation scheme cannot be withdrawn

So the quick calculation is your current balance, minus $1,000, minus anything transferred from Australian super. Remember your balance moves with the markets. If you are in a growth fund and plan to buy within the next year or so, it is worth thinking about how you would feel if the balance dropped just before you needed it. That is one of the things we look at in a KiwiSaver review.

The withdrawal form and the paperwork

There is no single government form. Each KiwiSaver provider has its own first home withdrawal application, which you will find on their website or by asking them. Most will want:

• Proof of identity
• A copy of the sale and purchase agreement
• Your lawyer’s or conveyancer’s details, because the money is paid to them
• A statutory declaration confirming you meet the rules, usually signed in front of a lawyer or Justice of the Peace
• A Kāinga Ora letter if you are applying as a previous home owner

Your lawyer will usually help with the declaration and send the application to your provider. Ask them early which documents they need from you.

Timing: the part that catches people out

Because the money arrives at or before settlement, it is not available when you go unconditional. If the agreement asks for a deposit at that point, you either need other funds for it or your lawyer needs to agree with the vendor that the deposit is paid later. Raise this before you make an offer, not after.

Lenders understand this. When we arrange pre-approval, the lender counts your expected KiwiSaver withdrawal towards your deposit, as long as you meet the rules. That is why we check your eligibility and balance at the very first conversation.

Using KiwiSaver with the First Home Loan

Your KiwiSaver withdrawal can make up the 5% deposit for a Kāinga Ora First Home Loan, which is how many Wellington buyers get into a home sooner than they expected. We explain the First Home Loan, and what replaced the First Home Grant, in a separate guide.

What changed in KiwiSaver in 2025 and 2026

The first home withdrawal rules themselves have not changed. Some of the money going into KiwiSaver has:

• From 1 July 2025 the government contribution is 25 cents for every dollar you contribute, up to $260.72 a year
• People earning more than $180,000 no longer receive the government contribution
• From 1 April 2026 the default contribution rate for employees and employers rose from 3% to 3.5%

If you are saving towards a first home, the higher contribution rate helps your balance grow, and the smaller government contribution means it is worth checking you still contribute enough to get the full amount.

After you buy

Once you have bought, KiwiSaver goes back to being a long-term retirement saving, and the fund that suited a short-term house deposit may not suit you any more. It is a good moment to review it. Our KiwiSaver advice starts with what the money is now for.

If you are thinking about buying in the next year or two, book a free call and we will work out how much of your deposit KiwiSaver can cover and when it will be available.

Frequently asked questions

Can we both withdraw if we are buying together?

Yes. Each buyer who meets the rules can withdraw from their own KiwiSaver account, and both amounts can go towards the same purchase.

Can I make a first home withdrawal more than once?

No. It is a one-off. If you have made a first home withdrawal before, you cannot make another.

I owned a home years ago. Can I still withdraw?

Possibly. Previous home owners who are now in a similar financial position to a first home buyer can apply to Kāinga Ora for a letter confirming they qualify, then give that letter to their KiwiSaver provider.

How long does a withdrawal take?

It depends on your provider. Many want the application well before settlement, often around two weeks. Check your provider’s timeframe as soon as you start looking, not when you find a house.

This is general information, not personal financial advice. Lending criteria and government settings change, so talk to us about your own situation before you make a decision.