KiwiSaver Rules for Buying a House
For many New Zealanders, KiwiSaver is the key to getting onto the property ladder. Savings built through KiwiSaver can often be used toward your first home deposit, helping you buy sooner than you thought possible.
But there are important rules around eligibility, withdrawals, and how the process works. This guide explains the rules for using KiwiSaver to buy a house and how Taranaki Home Loans supports clients through the process.
Who Can Use KiwiSaver for a First Home
KiwiSaver withdrawals are generally available for first-home buyers who meet certain conditions:
- You must have been a member of KiwiSaver for at least three years.
- You must intend to live in the property as your main home.
- The property can be an existing home or a new build.
- You must leave a minimum balance of $1,000 in your KiwiSaver account after withdrawal.
If you’ve previously owned a home but no longer do, you may still qualify as a “second chance” buyer. Kāinga Ora checks eligibility in these cases.
How the Withdrawal Works
The withdrawal process involves:
Applying through your KiwiSaver provider
- You’ll need forms, ID, and a copy of the sale and purchase agreement.
- Leaving $1,000 in your account. This is a legal requirement.
- Funds transferred at settlement. Your provider pays the money directly to your lawyer’s trust account, not to you personally.
Taranaki Home Loans works alongside your provider and lawyer to ensure the paperwork is completed correctly and on time.
KiwiSaver and the First Home Grant
Alongside KiwiSaver withdrawals, eligible buyers may also apply for a Kāinga Ora First Home Grant. This grant is separate from your KiwiSaver savings and can add up to:
$5,000 for an existing home (per person).
$10,000 for a new build (per person).
To qualify, you must have contributed at least 3% of your income to KiwiSaver for three years or more. Income caps and regional house price caps also apply. Taranaki Home Loans helps clients check eligibility for both the withdrawal and the grant.
Rules to Keep in Mind
- You cannot use KiwiSaver for an investment property.
- Funds must go toward your deposit or settlement, not other costs.
- You must apply early; processing can take several weeks.
- If you’ve owned a home before, Kāinga Ora must confirm you’re in the same financial position as a first-home buyer.
Knowing these rules upfront prevents delays and ensures your deposit is ready when needed.
Conclusion & Next Steps
KiwiSaver is one of the most powerful tools for first-home buyers in New Zealand, but there are clear rules about when and how it can be used. Knowing the process in advance ensures your deposit is ready when you need it.
At Taranaki Home Loans, we guide clients through KiwiSaver withdrawals, check eligibility for the First Home Grant, and make sure the timing works for your settlement. If you’d like help using KiwiSaver toward your first home, contact us today.
FAQ's
You must have been a KiwiSaver member for at least three years, intend to live in the property, and leave $1,000 in the account.
Possibly. Kāinga Ora may approve a “second chance” withdrawal if you’re in a similar position to a first-home buyer.
Through your KiwiSaver provider. Funds are sent to your lawyer’s trust account.
No. It can only be used for an owner-occupied home.
You can withdraw all but $1,000 of your balance.