For many people, buying their first home is a major financial milestone. KiwiSaver offers a first home withdrawal option that allows you to use your KiwiSaver savings to purchase your first home. In this blog post, we will explore the key features of the first home withdrawal option and what you need to know before making a withdrawal.
First Home Withdrawal
To be eligible for a first home withdrawal, you must have been a member of KiwiSaver for at least three years. This means that you must have made contributions for at least three years before you can withdraw funds for your first home. Once you have met this requirement, you can apply to withdraw your contributions, your employer’s contributions, the government contribution, interest you have earned and any fee subsidies that you have received.
You must leave a minimum balance of $1,000 in your KiwiSaver account after making the withdrawal. This is to ensure that you still have a KiwiSaver account and can continue to benefit from the long-term savings and investment features of the scheme.
Benefits of First Home Withdrawal
The first home withdrawal option is a great way to use your KiwiSaver savings to help you purchase your first home. By using your KiwiSaver savings, you may be able to increase your deposit and reduce your mortgage repayments, making it easier to own your first home.
In addition, the first home withdrawal option is a great way to boost your savings, as you may not have been able to save as much as you would have liked for a deposit otherwise. By contributing to KiwiSaver for at least three years, you can access your savings to help you buy your first home.
The first home withdrawal option can be a valuable feature of KiwiSaver that can help you purchase your first home. By contributing to KiwiSaver for at least three years, you can access your savings to help you increase your deposit and reduce your mortgage repayments. It is important to understand the eligibility criteria and the rules around the first home withdrawal option before making a withdrawal. If you are considering buying your first home, get in touch with us to find out more about the first home withdrawal option and how it can benefit you.
Kainga Ora First Home Grant
In addition, another consideration for first home buyers is the Kainga Ora Homestart Grant. This grant can provide up to $20,000.00 for a couple (or up to $10,000.00 each) towards your first home purchase. Stay tuned for our next blog where we will discuss this grant in more detail.