KiwiSaver First Home Withdrawal
After 3+ years of contributing, you can withdraw most of your KiwiSaver balance to buy your first home. You must leave $1,000 in the account.
If you've been contributing to KiwiSaver for at least 3 years, you can withdraw most of your balance to help buy your first home. You must leave at least $1,000 in your account.
The withdrawal can only be used for a home you'll live in yourself, not an investment property. You apply through your KiwiSaver provider, and the money goes directly to your solicitor as part of the settlement.
The withdrawal is unaffected by the closure of the First Home Grant on 22 May 2024 — it is a separate scheme and it is still open. The other live option is the First Home Loan, which lets you buy with a 5% deposit through participating lenders.
Why this matters
For many young New Zealanders, their KiwiSaver balance is their largest asset. Understanding the first home withdrawal rules is crucial if home ownership is one of your goals. Start contributing early and at a higher rate if buying a home is in your plans, the 3-year clock starts from your first contribution.
More KiwiSaver terms
KiwiSaver
New Zealand's voluntary retirement savings scheme. You contribute a percentage of your salary (3.5%, 4%, 6%, 8% or 10%), your employer contributes at least 3.5%, and the government adds up to $260.72 a year. Money is locked until age 65 (with exceptions for first home and hardship).
First Home Grant
Closed. The First Home Grant stopped taking new applications on 22 May 2024 and is not returning. It paid $3,000-$10,000 per person to first home buyers who met KiwiSaver contribution and income tests. The KiwiSaver first-home withdrawal and the First Home Loan are the schemes that still exist.
PIE Tax
Portfolio Investment Entity tax. The tax rate on your KiwiSaver and managed fund returns. Your rate depends on your income: 10.5% (under $14K), 17.5% ($14-48K), or 28% (over $48K). Set it correctly to avoid overpaying.
Conservative Fund
A KiwiSaver or managed fund that invests mostly in bonds and cash. Lower risk, lower returns. Suitable if you're close to retirement or plan to withdraw soon.
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