If you're saving for your first home in New Zealand, KiwiSaver isn't just a retirement fund — it can be one of your most valuable tools for building a deposit.
But the rules around withdrawals, grants, and eligibility can be confusing. This article breaks it all down so you know exactly what you're entitled to and how to access it.
The Two Main KiwiSaver Benefits for Home Buyers
There are two separate programs worth knowing about:
- KiwiSaver First Home Withdrawal — withdraw most of your KiwiSaver savings to put toward a deposit
- First Home Grant — a government cash contribution of up to $10,000 per person
Both can be used together, and both apply to existing properties and new builds (with some differences in the grant amounts).
KiwiSaver First Home Withdrawal
What Is It?
If you've been a KiwiSaver member for at least 3 years, you may be able to withdraw most of your balance to help purchase your first home.
You must leave a minimum balance of $1,000 in your account, but everything above that is available to withdraw.
Eligibility Requirements
To qualify, you must:
- Have been contributing to KiwiSaver for a minimum of 3 years
- Be purchasing your first home (or be in a similar financial position to a first home buyer — see below)
- Intend to live in the home as your principal place of residence (investment properties don't qualify)
- Be a New Zealand citizen, permanent resident, or eligible visa holder
Note: If you've previously owned property, you may still qualify if you're in a similar financial position to someone who has never owned a home. This is assessed by Kāinga Ora on a case-by-case basis.
How to Apply
Your KiwiSaver provider processes the withdrawal application. Allow 10–15 working days, so start the process well before your settlement date.
You'll need:
- A signed Sale and Purchase Agreement
- Confirmation from your solicitor
- Your KiwiSaver member number and provider details
First Home Grant (Kāinga Ora)
What Is It?
The First Home Grant is a government cash contribution paid directly toward your home purchase. It is separate from KiwiSaver and administered by Kāinga Ora.
Grant Amounts
| Property Type | Amount per Person | Max for 2 buyers |
|---|---|---|
| Existing home | Up to $5,000 | Up to $10,000 |
| New build | Up to $10,000 | Up to $20,000 |
The grant amount depends on how many years you've been contributing to KiwiSaver (minimum 3 years, maximum benefit at 5+ years).
Eligibility Requirements
| Criteria | Requirement |
|---|---|
| KiwiSaver membership | 3+ years of regular contributions |
| Income cap (single) | $95,000 gross per year or less |
| Income cap (2+ buyers) | $150,000 combined gross per year or less |
| House price cap | Varies by region (see below) |
| Property type | Must be your first home (or qualifying subsequent purchase) |
House Price Caps by Region
Price caps change periodically — always check the Kāinga Ora website for the latest figures. As a general guide:
| Region | Existing Home Cap | New Build Cap |
|---|---|---|
| Auckland | $875,000 | $925,000 |
| Wellington | $750,000 | $800,000 |
| Canterbury (Christchurch) | $650,000 | $700,000 |
| Other regions | $625,000 | $675,000 |
How Much Can You Access in Total?
Let's say you and your partner are buying together. If you've both been contributing to KiwiSaver for 5+ years:
| Source | Potential Amount |
|---|---|
| Your KiwiSaver withdrawal | $30,000 (depends on balance) |
| Partner's KiwiSaver withdrawal | $30,000 (depends on balance) |
| First Home Grant (existing home) | $10,000 |
| Total potential deposit boost | $70,000+ |
Combined with your personal savings, this can make a significant difference in reaching the deposit threshold your lender requires.
What KiwiSaver Cannot Be Used For
It's important to know the limits:
- Investment properties — KiwiSaver withdrawals and the First Home Grant are for owner-occupied homes only
- Auction unconditional — you need the funds confirmed before settlement, so plan your timeline carefully
- Existing KiwiSaver funds you don't want to touch — withdrawing reduces your retirement savings, so weigh this up
Practical Timeline
| Milestone | Timeline Before Settlement |
|---|---|
| Confirm KiwiSaver eligibility | 4–6 weeks out |
| Apply for First Home Grant | 4–6 weeks out |
| Submit KiwiSaver withdrawal application | 3–4 weeks out |
| Funds received by solicitor | ~10–15 working days after application |
Don't leave this to the last minute. Grant and withdrawal applications can take longer than expected, and delays can create stress at settlement.
Getting the Full Picture
KiwiSaver is one piece of the first home puzzle. A mortgage adviser can help you understand:
- Whether your KiwiSaver balance is enough to bridge the deposit gap
- Which lenders accept KiwiSaver as part of a deposit
- How the grant interacts with Welcome Home Loan or other schemes
Talk to Nexa — we'll help you put the full picture together →