If you're buying your first home, you may be able to use KiwiSaver savings and get a government subsidy.
A The government provides $1000 lump sum when you join KiwiSaver, plus tax credits of up to $1040 a year.
B The cap is currently $400,000 for higher priced areas such as Auckland city and $300,000 for the rest of New Zealand. This is to stop people from using the subsidy to buy homes they can't afford
How does KiwiSaver work?
KiwiSaver and home buying
KiwiSaver can be used to help you buy a home.
Using your KiwiSaver savings to buy a home
Once you've been a KiwiSaver for three years, you may be able to withdraw your savings (excluding the government contributionsA ) to put towards buying your first home.
First home deposit subsidy
From 2010, once you've been contributing to KiwiSaver (or another approved savings scheme) for at least three years, you may be entitled to the first home deposit subsidy of up to $5000.
To get the subsidy, you'll have to meet a household income test, buy a house that's under a certain valueB , and intend to live in the house for six months or more.
Important
Like you, we can't predict the future - which means we can't guarantee the performance of any savings scheme. Nor do we endorse any specific KiwiSaver provider or scheme. ConsumerSaver is a good starting point - but, before you commit, we strongly suggest you seek independent financial advice. See our full disclaimer.
