KiwiSaver First Home Withdrawal: All your Questions Answered

18 January, 2022 | Fiona Taylor

Reviewed and updated June 2025

The KiwiSaver First Home Withdrawal scheme helps first home buyers purchase residential property in New Zealand. A KiwiSaver withdrawal can be a great way to make a first home purchase achievable, but it is important to understand what you can and can’t do with a KiwiSaver First Home Withdrawal, and how to ensure that everything goes smoothly. Below we answer your frequently asked questions.

Who can withdraw money from KiwiSaver to buy a house?

To be eligible for the KiwiSaver First Home Withdrawal Scheme you must:

• be purchasing your first home;
• have been a member of KiwiSaver for a minimum of three years;
• have your KiwiSaver account with a KiwiSaver provider that allows saving withdrawals; and
• intend to live in the property for at least six months.

We recommend that you contact your individual KiwiSaver provider and check their individual policy on withdrawals for first homes. The right to withdraw funds for a first home purchase is entirely at the discretion of your KiwiSaver provider, as their first obligation is to ensure that their members are saving for their retirements.

I have already owned a house, but I don’t own one now, can I withdraw my KiwiSaver to help buy a house?

If you have previously owned property, but no longer own any, and your finances are similar to that of a first home buyer, you may qualify to withdraw KiwiSaver funds towards buying a home.

However, if you have previously withdrawn funds from KiwiSaver to buy residential property, you will not be able to make a second withdrawal.

You will first need to apply to Kāinga Ora for a “Kiwisaver first-home withdrawal – determination for previous homeowner”. These applications take a minimum of 20 working days. You can do this yourself without the help of a lawyer – see further information and application form here.

If you are deemed to be in the same financial position as a first home buyer, you will receive a confirmation letter from Kāinga Ora that you are eligible for previous homeowner withdrawal.

Once you have received this confirmation, you will then need to contact your individual KiwiSaver provider and provide them with the confirmation letter to get pre-approval for the withdrawal. Ultimately it is your KiwiSaver provider that decides if you can withdraw or not.

Is there an income cap?

There are no restrictions on how much you earn, as long as you meet the other criteria.

How much can I spend on the house?

There is no limit on the purchase price of the house.

How much of my KiwiSaver can I use to buy a house?

If you are eligible for the KiwiSaver First Home Withdrawal, you can withdraw:

• all of your contributions;
• all of your employers’ contributions;
• any interest that you’ve earned, and
• any member tax credits;
• minus $1,000.00 ($1,000.00 must remain in your KiwiSaver account after withdrawal).

You cannot withdraw funds transferred from an Australian Complying Superannuation scheme into your KiwiSaver account.

It is best practice to request pre-approval from your KiwiSaver provider and get an estimate of how much you can withdraw. Most mortgage brokers and banks will require this as part of your mortgage pre-approval process.

How do I apply to use my KiwiSaver to buy property?

To use your KiwiSaver to buy a house, you should contact your KiwiSaver provider to get a pre approval as soon as possible. As part of this process, your KiwiSaver provider should be able to provide you with an estimate of how much you can withdraw. It is important to note that pre approval does not speed up the official application process.

Once you have an agreement to buy your first home, you will need to:

• fill in the application form provided by your specific KiwiSaver provider (this can be done with or without assistance from a lawyer);
• sign a statutory declaration. Usually this is witnessed by your property lawyer, though a JP or person authorised to take declarations can also witness this;
• attach certified copies of supporting documents to the application. You need to carefully check the requirements for verifying ID and proof of address on the KiwiSaver application form – if this is done incorrectly, it can hold up your application.

Your solicitor will have to provide a letter/solicitor’s certificate referring to the Agreement for sale and purchase and the due dates for the deposit and settlement. They will also provide an undertaking as to whether the agreement is conditional or unconditional.

We recommend that you get your property lawyer to submit the application. This allows them to ensure that the application is full and correct and means that your KiwiSaver provider contacts them directly with any issues.

Most KiwiSaver providers require at least 2 weeks (10 working days) from receiving your lawyer’s letter to process an application, so any settlement date for the purchase of your home will need to be at least 2 weeks from the date all conditions of your agreement are satisfied. Some KiwiSaver providers require 15 working days to process applications.

Due to the importance of these dates, it is vital that you contact your lawyer as soon as (if not before) you agree to buy a property.

If all goes well, your KiwiSaver provider will send your KiwiSaver money directly to your lawyer, who will use the funds as required to complete your deposit or purchase.

Can I use KiwiSaver for a house deposit?

When purchasing property there are two types of “deposit” – see our article https://smithpartners.co.nz/property-law/types-of-deposits-when-buying-a-house/. Kiwisaver funds have always been able to form part of your “bank deposit”, however you can now use KiwiSaver funds to pay the “purchase deposit” in certain circumstances:

• the purchase is by a method other than an auction (you cannot use Kiwisaver as a deposit when purchasing by auction);
• you must make it clear to the agent that your deposit is being paid from KiwiSaver funds and advise them that the following amendments must be made to the Agreement for sale and purchase, and the vendor will need to agree to these.
• the Agreement must state that the deposit will be payable on the unconditional date, not on the signing of the Agreement.
• the Agreement must state that the deposit is paid to the vendors solicitors (not the real estate agent), who will hold the funds in the solicitor’s trust account until settlement day (and cannot be released to the vendor earlier).

I’m not in KiwiSaver, but a different employer-based superannuation scheme, can I withdraw money to buy a house?

There are some non-KiwiSaver employer superannuation schemes that also allow for a first home withdrawal in a similar vein to KiwiSaver. Exempt employer schemes do not allow withdrawals.

As non-KiwiSaver schemes are not subject to the same requirements as KiwiSaver providers, it is imperative that you contact your individual provider to clarify:

• that the provider allows for first home withdrawals;
• that you meet their specific eligibility criteria for withdrawals;
• how much you can withdraw;
• what the conditions are (and application time frames).

Can I use my KiwiSaver to buy a house with my spouse/partner?

If your spouse/partner has not previously owned a home, you can both withdraw your KiwiSaver and pool that money together. You will each need to contact your KiwiSaver providers individually to get pre-approval and to submit applications for withdrawal.

If your spouse/partner has previously owned a home, only you can withdraw from your KiwiSaver to buy a house – if you meet the criteria. But the fact that your partner is already a homeowner does not affect your ability to withdraw your KiwiSaver.

It is important to note that if one of you is contributing more money, we suggest having a contracting out agreement that protects this person’s KiwiSaver money (or savings) if the relationship breaks down and/or if the property is sold for any reason: see https://smithpartners.co.nz/family-law/what-is-a-contracting-out-agreement/?

Can I use the KiwiSaver First Home Withdrawal to buy a house that is put in my family trust?

Many KiwiSaver providers do not allow you to withdraw KiwiSaver funds if the house is going to be owned by a trust, but some do.

You will need to check that the provider of your scheme allows this before signing the Agreement for sale and purchase.

The KiwiSaver providers that do allow you to withdraw funds to purchase a house that will be owned by a trust require the following:

• you must be a trustee and beneficiary of the trust that will own the property;
• you cannot be the beneficiary of another trust that owns property, where that property is your principal place of residence.
• when you sign the Agreement for Sale and Purchase, the purchaser’s name must be written as “(Full Name of KiwiSaver/Purchaser) as Trustee of the (Name of Family Trust)” e.g. John Steve Brown as Trustee of the Brown Family Trust.
• you must intend to live in the property as your principal place of residence.

Can I use my KiwiSaver to purchase property overseas?

No, the property you buy must be in New Zealand.

If I own a property overseas, can I use my KiwiSaver to purchase property in New Zealand?

No, you are considered a property owner no matter where the property you own is situated.

Can I make a KiwiSaver withdrawal to buy a house on Maori land?

Yes, withdrawals can be made to purchase a house on Maori land, provided:

•  you meet the other KiwiSaver withdrawal eligibility criteria;
• you intend the house to be your principal place of residence; and
• you provide additional documents stating you have a right to occupy the Maori Land eg. a licence to occupy or occupation order.

You should check directly with your KiwiSaver provider to discuss any specific requirements.

Can I use my KiwiSaver to buy an investment property?

You cannot use the KiwiSaver Withdrawal to purchase an investment property. You must intend to live in the property for at least six months.

Can I use my KiwiSaver to buy land/a section?

Yes, you can use your KiwiSaver to purchase land / a bare section, as long as you intend to build a house on it, which you intend to live in. There are no restrictions on when the house must be built.

You can also use your KiwiSaver towards a house and land package, as long as you make the Kiwisaver withdrawal before any transfer of the land into your name.

If you already own land, or are being gifted land, you cannot use your KiwiSaver to fund the cost of the build as you are deemed to be a property owner.

What can go wrong?

Applying to withdraw KiwiSaver funds (and the process of receiving those funds) takes time.

If not enough time is allowed for the finance condition, or from unconditional date to settlement date, this can cause big problems.

If the application has been filled out incorrectly, or does not include the correct supporting documentation, this can create extra delays in processing the application. The KiwiSaver providers take no liability for delays in processing applications.

If the funds have not arrived from the KiwiSaver provider in time for settlement, they cannot be used towards the purchase. You as the purchaser cannot get a loan from somewhere else to cover the shortfall (for settlement) and then use your KiwiSaver to repay that shortfall loan.

If you do choose to cover the shortfall and complete the sale on settlement day without the KiwiSaver funds, those funds will be locked away until you retire.

If the KiwiSaver funds don’t arrive in time your options are:

• cover the shortfall in price and forfeit the ability to withdraw your KiwiSaver funds; or
• delay settlement and pay daily penalty interest to the vendor until the money comes through; or
• default on the Agreement (don’t buy the house) – and you will most likely have to pay the vendor damages.

How can I make things go smoothly?

Get pre-approval from your KiwiSaver provider as to how much money you can withdraw – this will prevent costly mistakes that can arise from assumptions as to how much you can withdraw.

In the Agreement for Sale and Purchase – allow at least 10-15 working days for the purchaser to finalise Finance conditions.

Allow at least 10 working days from the date the agreement goes unconditional until settlement date.

Submit your KiwiSaver Withdrawal application as soon as you can.

Want to know more?

Complete the form below, and we will get back to you promptly, or contact Fiona Taylor on 09 837 6845 or email Fiona.taylor@smithpartners.co.nz