RealyUsing KiwiSaver for your first home: the complete NZ guide
KiwiSaver is the single largest source of deposit for most first-home buyers in New Zealand. Used right, you can pull almost all of it out, combine it with a First Home Grant, and skip a year or two of saving. Here's exactly how it works.
Eligibility
- You've been in KiwiSaver for at least 3 years
- You're buying your first home — or you've previously owned but Kāinga Ora has confirmed you're in the same financial position as a first-home buyer
- The home will be your primary place of residence (not an investment)
- The property is in New Zealand
What you can withdraw
You can withdraw everything except $1,000 from your KiwiSaver account. That includes:
- Your contributions
- Your employer contributions
- Government contributions
- All investment returns
The $1,000 minimum balance keeps your account active.
How to apply
- Contact your KiwiSaver provider and request the first home withdrawal application (usually a downloadable form or online process)
- Submit with proof of identity, evidence of 3+ years' membership, and a copy of the signed Sale and Purchase Agreement
- Your provider sends the funds to your solicitor's trust account, not to you directly
- Funds are released to the seller on settlement
Timeline: Most providers require 10–15 working days. Apply the moment you go unconditional, not before — your application needs the signed agreement.
First Home Grant (Kāinga Ora)
If you qualify for the KiwiSaver withdrawal, you may also qualify for the First Home Grant on top:
- Up to $5,000 per person ($10,000 for a couple) for an existing home
- Up to $10,000 per person ($20,000 for a couple) for a new build
- Income caps: $95,000 individual / $150,000 combined (subject to Kāinga Ora updates)
- Property price caps: vary by region — check the current Kāinga Ora caps for your area
- You must have contributed at least the minimum (3% of income) for 3+ years
Combining sources — a worked example
Couple, 32 and 33 years old, both contributed 3% to KiwiSaver for 8 years, buying an existing $720k home in Hamilton:
| Cash savings | $22,000 |
| KiwiSaver withdrawal (combined) | $58,000 |
| First Home Grant ($5k each) | $10,000 |
| Gifted from family | $15,000 |
| Total deposit | $105,000 (14.6%) |
| Loan required | $615,000 |
This couple now meets the 80% LVR comfortably and avoids the low-equity premium charged on loans above 80%.
Frequently asked questions
Can I use KiwiSaver for an investment property?
No. The first home withdrawal is strictly for owner-occupied properties. You must intend to live in the home, and you'll sign a statutory declaration to that effect.
What if my partner has owned a home before but I haven't?
You can still withdraw your own KiwiSaver as a first-home buyer. Your partner may also qualify under Kāinga Ora's 'second-chance' criteria if they're in the same financial position as a first-home buyer (you apply for a determination first).
Can I withdraw KiwiSaver to pay the deposit on signing?
No — the funds are released at settlement, not at signing. The agent's deposit (typically 10% on going unconditional) usually has to come from cash, parents, or a bank bridging facility.
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