Hi iCLAW, I’ve owned a property before, but I didn’t use my KiwiSaver balance to help me with the purchase. I’m about to buy a new property, and was wondering whether I can use my KiwiSaver this time?

The general rule is that if you have owned a property before you cannot withdraw your KiwiSaver to contribute to the purchase price of a subsequent property – even if you didn’t use your KiwiSaver the first time. However, in very specific circumstances you may be eligible for a second chance Kiwisaver withdrawal.

Eligibility:

Second-chance KiwiSaver can be a tricky one – Kainga Ora would need to determine that as a previous home owner, you are in the same financial position as a first home buyer by assessing you against the criteria for a ‘Qualifying Previous Homeowner’. If you currently own a home, land or have a share in a property (not including ownership of Māori land) you will not be eligible for this feature. The eligibility requirements are set out below:

  • You have been enrolled in KiwSaver for over three years;

  • You no longer own or have a share/interest in any property (other than Māori land ownership);

  • You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit;

  • Your realisable assets do not total to more than 20% of the house price cap for an existing/older property in the region in which you are intending on purchasing your home.

Realisable assets include:

  • Any cash or money held in bank accounts (including term deposits)

  • Investments held with banks, platforms or any other form of provider

  • Cash paid to a solicitor or real estate agent for deposit on a property

  • Any cars or motorbikes that ate not your main mode of transport

  • Any boats, tractors, motorhomes etc

  • Any other individual assets that are worth more than $5,000

Realisable asset caps vary from region to region and are subject to change. You can find more information here: https://kaingaora.govt.nz/home-ownership/kiwisaver-first-home-withdrawal/

At a glance, the realisable asset caps vary from $175k in the Thames-Coromandel district with a $875k cap on your new home, to a $80k asset cap in South-Waikato with a $400k cap on your new home (figures as at 15 May 2023).

 

Application:

If you are a previous homeowner, you will need to apply through your KiwiSaver scheme provider for a second chance withdrawal; however, Kainga Ora will need to initially determine whether you are a Qualifying Previous Homeowner using the requirements above. If Kainga Ora deem you to be in the same financial position as a first home buyer, the letter produced by Kainga Ora will need to be forwarded to your scheme provider along with your application to withdraw your KiwiSaver.

The withdrawal is administered by your KiwiSaver scheme provider, and if approved the payment of funds will be paid to your solicitor on or before settlement.

If you are also considering applying for First Home Grant, this would be a separate application.

For more information about KiwiSaver, First Home Grant or general questions about purchasing a property please reach out to one of the iCLAW team.