KiwiSaver First Home Withdrawal NZ: Complete Guide for 2026
Quick Answer: You can withdraw your KiwiSaver savings (minus $1,000) to buy your first home in New Zealand, provided you have been a member for at least 3 years and are purchasing a property to live in. The First Home Grant closed in May 2024, but the First Home Loan (5% deposit) is still available through selected banks.
KiwiSaver First Home Withdrawal Rules
Your KiwiSaver can be one of the biggest tools in your home-buying toolkit. Here is exactly what you need to qualify and how much you can access.
Eligibility Criteria
To withdraw your KiwiSaver for a first home, you must:
- Be a KiwiSaver member for at least 3 years
- Be purchasing your principal place of residence (not an investment property)
- Not have previously made a KiwiSaver home withdrawal (you only get one)
- Not currently own (or have previously owned) an estate in land, unless you qualify for a second chance withdrawal
- Be buying property in New Zealand
How Much Can You Withdraw?
You can withdraw almost everything in your KiwiSaver account. This includes:
- Your own contributions
- Employer contributions
- Government contributions (member tax credits)
- Investment returns
There is no maximum cap on the amount you can withdraw. The only requirement is that you must leave a minimum balance of $1,000 in your account after the withdrawal.
So if your KiwiSaver balance is $45,000, you can withdraw up to $44,000 towards your home purchase.
What You Cannot Withdraw
A small portion of your KiwiSaver is not available for withdrawal:
- Any funds transferred from an Australian complying superannuation scheme
Note: The $1,000 government kick-start (which was paid to members who joined before 21 May 2015) can now be withdrawn as part of a first home withdrawal.
Eligible Property Types
Your KiwiSaver withdrawal can be used to purchase:
- Fee simple (freehold) properties
- Cross-lease properties
- Unit title / stratum properties
- Leasehold properties
- Maori land
The property must be one you intend to live in. You cannot use your KiwiSaver to buy a rental or investment property.
The First Home Grant Has Closed
If you have been planning to use the First Home Grant (previously known as the KiwiSaver HomeStart Grant), you need to know that the scheme closed to new applications on 22 May 2024.
Housing Minister Chris Bishop announced the closure as part of Budget 2024. The $140 million budget was redirected to fund approximately 1,500 new social housing places through external providers.
What the Grant Used to Offer
For reference, the grant previously provided:
| Property Type | Per Person (5+ years contributing) | Couple Combined |
|---|---|---|
| Existing home | Up to $5,000 | Up to $10,000 |
| New build | Up to $10,000 | Up to $20,000 |
The grant has not been replaced with a direct equivalent. However, you can still withdraw your KiwiSaver savings and access the First Home Loan, which are both separate from the grant.
First Home Loan: Buy With Just a 5% Deposit
The First Home Loan, underwritten by Kainga Ora, is still available and allows first home buyers to purchase with a deposit as low as 5%, compared to the standard 20% required by most banks.
Key Details
| Requirement | Details |
|---|---|
| Minimum deposit | 5% of the purchase price |
| House price cap | No cap (price caps were removed on 1 June 2022) |
| Income cap (single, no dependants) | $95,000 gross annual income |
| Income cap (couple or single with dependants) | $150,000 combined gross annual income |
| Must be | NZ citizen or permanent resident, first home buyer |
| Property use | Must be your principal residence |
Participating Banks
The First Home Loan is currently offered through Westpac, Kiwibank, and SBS Bank. Talk to your mortgage broker or bank about whether you qualify.
Combining KiwiSaver + First Home Loan
You can use your KiwiSaver withdrawal as your 5% deposit for a First Home Loan. This is one of the most common ways first home buyers get into the market in Christchurch, particularly for properties in the $500,000 to $700,000 range where a 5% deposit is $25,000 to $35,000.
Second Chance Withdrawal for Previous Homeowners
If you have owned property before but no longer do, you may still be able to use your KiwiSaver. This is called a "second chance" or "previous homeowner" withdrawal.
Eligibility Criteria
You must meet all of the following:
- Been a KiwiSaver member for at least 3 years
- Never previously withdrawn KiwiSaver for a home purchase
- No longer own or have any interest in property (Maori land excluded)
- Deemed by Kainga Ora to be in the same financial position as a first home buyer
The Financial Position Test
Kainga Ora will assess your realisable assets to determine if you are in a similar position to a first home buyer. Your realisable assets must not exceed 20% of the regional house price cap for the area you are buying in.
Realisable assets include cash, investments, shares, term deposits, vehicles (not your main transport), boats, and any individual assets worth more than $5,000.
How to Apply
- Apply to Kainga Ora to be assessed as a qualifying previous homeowner
- Receive a determination letter confirming your eligibility
- Submit the determination letter to your KiwiSaver provider along with your sale and purchase agreement
- Funds are released to your solicitor's trust account
Step-by-Step: How to Withdraw Your KiwiSaver for a Home
The process is straightforward, but timing is critical. You should begin your application well before your settlement date.
Step 1: Check Your Balance and Eligibility
Log in to your KiwiSaver provider's website to check your balance and confirm you have been a member for at least 3 years. Make sure your contact details are up to date.
Step 2: Get Conditional Approval on a Property
You can use your KiwiSaver withdrawal as part of your deposit while the agreement is still conditional. Since 1 June 2015, you do not need to wait until the agreement goes unconditional to apply.
Step 3: Apply to Your KiwiSaver Provider
Contact your provider (not IRD and not Kainga Ora, unless you are a previous homeowner). You will need:
- Completed first home withdrawal application form
- A statutory declaration witnessed by a Justice of the Peace or lawyer
- A letter from your solicitor or conveyancer confirming the purchase details
- Copy of your sale and purchase agreement
Step 4: Wait for Processing
Processing times vary by provider:
| Provider | Typical Processing Time |
|---|---|
| Westpac | ~10 business days (15 if lived overseas) |
| ASB | ~10 working days |
| Other providers | 15-20 business days |
Apply at least 4 to 6 weeks before your settlement date to allow enough time.
Step 5: Funds Paid to Your Solicitor
Once approved, your KiwiSaver provider pays the funds directly to your solicitor's trust account. The money is not paid to you personally. Your solicitor will use it towards your deposit or settlement amount.
KiwiSaver Changes Coming in 2026
Contribution Rate Increase (1 April 2026)
From 1 April 2026, the default KiwiSaver contribution rate for both employees and employers will increase from 3% to 3.5%. This was announced as part of Budget 2025.
A further increase to 4% is planned for 1 April 2028. If you are already contributing more than the default rate, this change will not affect you.
For first home buyers, this means your KiwiSaver balance will grow slightly faster going forward, which could help you reach your deposit goal sooner.
Proposed Changes for Specific Groups
The government has signalled further changes expected in a bill to be introduced to Parliament in mid-2026:
- Service tenancy workers (rural teachers, police, diplomats, military personnel) may be able to withdraw KiwiSaver for a home purchase without needing to live in the property, to address situations where their employer provides housing
- First-time farmers may be able to buy farmland through majority-owned companies, partnerships, or trusts if it will be their principal residence
These changes are not yet law and would need to pass through Parliament before taking effect.
Why Work With Hayden Roulston When Buying Your First Home
Buying your first home is a big step, and having the right agent makes a real difference. Hayden Roulston has helped dozens of first home buyers navigate the Christchurch property market, from finding the right property to understanding the process of buying a home in Christchurch.
What Sets Hayden Apart
- Christchurch market knowledge: Deep understanding of suburbs, pricing trends, and where first home buyers are getting the best value right now
- First home buyer experience: Hayden regularly works with buyers using KiwiSaver withdrawals and First Home Loans, and understands the timing involved
- Transparent guidance: No pressure, just honest advice about what you can afford and which areas suit your lifestyle
- Free property appraisals: If you are looking at a specific property, Hayden can provide a realistic market assessment so you know what to offer
Frequently Asked Questions
How long do I need to be in KiwiSaver before I can withdraw for a house?
You must have been a KiwiSaver member for at least 3 years. This is calculated from the date you first joined KiwiSaver, regardless of whether you have changed providers or had gaps in contributions.
Can I use my KiwiSaver for a deposit while the agreement is still conditional?
Yes. Since 1 June 2015, you can apply to withdraw your KiwiSaver while your sale and purchase agreement is still conditional. You do not need to wait until the agreement goes unconditional.
Is the First Home Grant still available in 2026?
No. The First Home Grant (previously called the KiwiSaver HomeStart Grant) closed to new applications on 22 May 2024. It has not been replaced with a direct equivalent. However, the KiwiSaver first home withdrawal and First Home Loan are still available.
Can I withdraw my KiwiSaver if I have owned a home before?
Possibly. If you no longer own property and have never previously made a KiwiSaver home withdrawal, you may qualify for a second chance withdrawal. You will need to apply to Kainga Ora and meet their financial position test before your KiwiSaver provider can release the funds.
How much do I need to leave in my KiwiSaver account?
You must leave a minimum balance of $1,000 in your KiwiSaver account after your withdrawal. Everything above that amount (including employer contributions, government contributions, and investment returns) can be withdrawn.
How long does it take to get my KiwiSaver money for a house purchase?
Processing typically takes 10 to 20 business days depending on your provider. You should apply at least 4 to 6 weeks before your settlement date to allow enough time. The funds are paid directly to your solicitor's trust account, not to you personally.