KiwiSaver first home buyers, here's what you need to know
Using your KiwiSaver as part of your house deposit can give you the boost you need to get on the property ladder.
Most people think of KiwiSaver as a retirement savings scheme, but it comes with a pretty epic perk - you may be able to withdraw funds to help buy your first home.
Here's everything you need to know.
The big KiwiSaver first home takeaway
KiwiSaver is a voluntary government-backed savings scheme, launched in 2007, designed to help New Zealanders save for retirement.
But it comes with extra perks - and one of the biggest is being able to use it to help buy your first home.
If you're eligible, you can withdraw most of your KiwiSaver savings to help you buy your first home - as long as you leave at least $1,000 in your KiwiSaver account.
That includes:
- Your contributions
- Your employer contributions
- Government contributions
- Investment returns
How does KiwiSaver work?
Well, that all depends on how you much you earn.
If you're employed
If you're between 18 - 64, you'll usually be automatically enrolled when you start a new job (you can opt out within 2 - 8 weeks). Once you're in:
- Contributions come out of your pay automatically
- You choose a contribution rate: 3%, 4%, 6%, 8% or 10%*
- Your employer contributes at least 3% of your gross pay
- And if you contribute enough, you may also get the government contribution.
*Note: KiwiSaver default contribution rates will increase from 3% to 4% for both employees and employers in two stages, with the first rise to 3.5% on 1 April 2026, followed by 4% on 1 April 2028.
If you're self-employed
You'll need to join KiwiSaver directly through a provider.
You still choose your contribution level (same options: 3% to 10%) and decide how often you contribute.
You won't get employer contributions, but you can still qualify for government contribution is you're contributing yourself.
The government contribution (aka free money)
If your taxable income is under $180,000, you may be eligible for up to $260.72 per year from the government.
To get the full amount, you need to contribute at least $1,042.86 between 1 July and 30 June each year.
Even if you contribute less, you'll still get 25 cents for every $1 you contribute (up to the maximum).
KiwiSaver benefits (besides the first home withdrawal)
KiwiSaver is popular for a reason:
- Saving happens automatically (set and forget)
- It's a low-cost way to invest in managed funds
- Your account stays with you when you change jobs
- It keeps your savings "out of reach" (helpful for some of us...)
- There are limited early withdrawal options in cases of hardship
- Employer and government contributions can give your balance a serious boost.
Honestly? It's a bit of a no-brainer.
How KiwiSaver helps you buy your first home
If you meet the criteria, you can withdraw most of your KiwiSaver balance to put towards your first home deposit. You'll need to leave at least $1,000 behind, but the rest can usually be used.
To be eligible to withdraw some or all of your KiwiSaver you'll need to tick these boxes:
- you've been a KiwiSaver scheme member for at least three years
- you're buying your first home (or eligible for a second-chance withdrawal)
- you intend to live in the property (not an investment)
- the property is in New Zealand
- you've never made a KiwiSaver first home withdrawal before.
Note: Owning Māori land doesn't count as owning property for KiwiSaver withdrawal purposes.
What about second-chance withdrawals?
In some situations, you may still be eligible even if you've owned property before (for example after a breakup).
To do this, you'll need:
- Kāinga Ora approval, and
- approval from your KiwiSaver provider.
Top tips to get the most out of your KiwiSaver
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KiwiSaver questions that first home buyers ask a lot
Ready to buy? Let's talk.
KiwiSaver withdrawals are helpful, but the rules and timing can get confusing fast.
Squirrel can help you understand what you're eligible for, work out how much you can borrow, plan your deposit strategy (including KiwiSaver) and get mortgage advice that actually makes sense for your situation.
Want the full first home buyer checklist?
Looking to buy your first home with a small deposit?
You're not alone, and yes, it's still possible. Get our guide to find out how.
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