First home buyer grants

Buying your first home is a huge milestone, but understanding the financial support available can feel confusing. This guide makes it simple by explaining the main tools available to first home buyers in New Zealand: your KiwiSaver and the First Home Loan.

What happened to the First Home Grant?

It’s important to know that the First Home Grant scheme ended on 22 May 2024 and is no longer available. This grant was a government contribution that helped eligible buyers with their deposit. While you might still see it mentioned in older articles, it is no longer an option for first home buyers.

The good news is that there are still two very powerful tools available to help you get on the property ladder: the KiwiSaver first-home withdrawal and the First Home Loan.

Using your KiwiSaver for your first home

Your KiwiSaver account is one of the most effective tools for building a deposit. If you’ve been contributing for a few years, you may have a significant amount ready to put towards your first property.

Am I eligible for a KiwiSaver first-home withdrawal?

You can likely make a first-home withdrawal if you meet these key criteria:

You have been a member of a KiwiSaver scheme for at least three years.
You have not made a first-home withdrawal before.
You intend to live in the property you are buying (it cannot be an investment property).
The property is in New Zealand.

Even if you have owned property before, you may still be eligible as a “second chance” home buyer. You’ll need to contact Kāinga Ora to see if you are in the same financial position as a typical first home buyer.

How much of my KiwiSaver can I withdraw?

You can withdraw almost all of your KiwiSaver balance. This includes your personal contributions, your employer’s contributions, and any government contributions (member tax credits).

The only funds you cannot withdraw are:

The initial $1,000 government kick-start contribution (if you received it). This must remain in your account.
Any funds you may have transferred from an Australian superannuation scheme.

How do I apply for the withdrawal?

The process is managed by your KiwiSaver provider, not the government. You will need to contact your provider to get the correct application forms. The process generally involves:

Having a signed Sale and Purchase Agreement for a property.
Completing the withdrawal form from your KiwiSaver provider.
Having your application witnessed by a solicitor or Justice of the Peace.
Your solicitor will also need to complete parts of the application.

It’s crucial to apply well in advance of your settlement date, as the process can take some time. Once approved, the funds are paid directly to your solicitor’s trust account to be used for the purchase.

The First Home Loan: buying with a smaller deposit

The First Home Loan is a government-supported initiative designed to help first home buyers who can afford mortgage repayments but are struggling to save a large deposit. It allows you to buy a home with as little as a 5% deposit.

The loan itself is provided by selected banks and lenders, but it is underwritten by Kāinga Ora, which gives the banks the confidence to lend with a smaller deposit.

Who is eligible for a First Home Loan?

To be eligible, you must meet several criteria, including:

Income Caps: Your total household income before tax for the last 12 months must be no more than:
- $95,000 for an individual buyer without dependants.
- $150,000 for an individual buyer with one or more dependants.
- $150,000 (combined) for two or more buyers, regardless of dependants.
Minimum Deposit: You must have a minimum 5% deposit. This can come from your KiwiSaver withdrawal, savings, or a gift from a family member.
Residency: You must be a New Zealand citizen, permanent resident, or a resident visa holder who is “ordinarily resident in New Zealand”.
Ownership: You cannot currently own any other property or land.

You will also need to meet the individual lending criteria of the participating bank or lender. To apply, you should speak directly with one of the participating lenders or a mortgage adviser.