Finding a home: How KiwiSaver can help you

Many of us have opted into KiwiSaver to help create a little nest egg for our retirement.  But you can actually tap into that money if you are looking to buy your first home.  This can be a great stepping stone into living the kiwi dream and owning your own property.

Basically, you can take up to $5,000, which could really help you on your way.  And if you are a couple you could both qualify, entitling you to $10,000.

It does come with certain conditions though, including:

1.  You must have been involved in KiwiSaver for at least three years

2.  The amount you are eligible for is based on how long you have been involved in KiwiSaver

3.  You can only take out your savings, employer contributions and any interest, meaning you cannot use your $1,000                      government kick-start or any tax credits

4.  You have to live in the property for six months

5.  There are limits on the price of the house you can buy

6.  Your income cannot surpass a certain limit.

On 1 October 2013, some of the conditions are changing slightly with the maximum price of the home changing for certain areas, the income threshold changing and buyers will need  to have at least 10% of the purchase price for their deposit (including the KiwiSaver amount). 

Under certain conditions you can also apply if you have owned a home before.  To see these conditions in more detail and assess whether you are eligible, check out Housing New Zealand’s website.

Housing New Zealand also gives you a good breakdown of all these changes and the conditions, or you can find out more about KiwiSaver and the First Home Deposit Subsidy in general here.

And of course, once you’ve figured out your eligibility, use our great range of property information to make sure that your big property decision is indeed a smart one.