Second chance KiwiSaver withdrawals

With the formation of Kāinga Ora and its new website, finding information on the KiwiSaver withdrawal process has gotten a bit messy. We’ve had a few clients struggling to understand the process, so here’s a quick soundbite.

You can still withdraw your KiwiSaver for a home purchase even if you have owned property before - provided you look like a first home buyer.

The most common scenario we see is businesspeople who have sold their house to rescue the business, and then later on are buying back into the market. In this case, for all intents and purposes, you will be viewed as a first home buyer and granted access to your KiwiSaver for a deposit.

How to get approval to withdraw your KiwiSaver

1. The first thing you need to do is get approval from Kāinga Ora. There is an online application to do this (that is hard to find) but you can get to it here.
2. Once you have approval you can then apply to your KiwiSaver provider for a withdrawal confirmation and you’re ready to go. Simple.

A quick recap on KiwiSaver and the First Home Grant

To be eligible to withdraw some or all of your KiwiSaver you must:

• have been a KiwiSaver scheme member for at least three years;
• be planning to live in the house for at least six months, and
• be buying your first home, or look like a first home buyer (as explained above).

To be eligible for the HomeStart Grant you must:

• have contributed at least 3% of your income to a KiwiSaver scheme for at least three years
• be planning to live in the house for at least six months,
• have a single income under $85,000 or a combined yearly income of $130,000 or less (before tax) two buyers,
• be buying a house under $600,000 (or building new for under $650,000) in Auckland, $500,000 in other major metropolitan areas, and $400,000 across the rest of New Zealand.

If you’re unsure whether you’re eligible for a second KiwiSaver withdrawal, we can help.

The opinions expressed in this article should not be taken as financial advice, or a recommendation of any financial product. Squirrel shall not be liable or responsible for any information, omissions, or errors present. Any commentary provided are the personal views of the author and are not necessarily representative of the views and opinions of Squirrel. We recommend seeking professional investment and/or mortgage advice before taking any action.

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