Using KiwiSaver to Buy Your First Home in New Zealand

For many New Zealanders, the KiwiSaver first home withdrawal is the single biggest boost to their house deposit. After contributing for at least three years, you can withdraw almost your entire KiwiSaver balance — including employer contributions, investment returns, and government contributions — to put towards buying your first home.

In this guide, we break down exactly who's eligible, how much you can take out, and the practical steps to get your KiwiSaver funds into your solicitor's account before settlement day. We also cover the First Home Loan scheme, which lets you buy with as little as a 5% deposit — and how these two programmes work together.

Whether you're just starting to plan or you've already found the right property, here's what you need to know.

Who Can Withdraw KiwiSaver for a First Home?

To be eligible for a KiwiSaver first home withdrawal, you must meet all of the following criteria:

• Been a KiwiSaver member for at least three years. The three years don't need to be consecutive — they just need to add up to three years' worth of regular contributions. If you took a savings suspension at any point, that time doesn't count.

• Not owned a home or land before in New Zealand or overseas. This includes property owned by a spouse or de facto partner.

• Be buying a home or land in New Zealand. The withdrawal can only be used for property in NZ.

• Intend to live in the property. You must plan to live in the home you're purchasing — it cannot be a rental or investment property.

• Not made a first home withdrawal before. You only get one shot at this, so make it count.

What About Previous Home Owners?

If you've previously owned a home but no longer do, you may still qualify. Kāinga Ora can assess whether you're in the same financial position as a first home buyer — a provision sometimes called the "second chance" pathway.

To be eligible as a previous home owner, you must not have realisable assets worth more than 20% of the relevant regional house price cap. Kāinga Ora will send a confirmation letter to your KiwiSaver provider if you qualify.

In our experience working with first home buyers, this second-chance pathway is more accessible than many people realise. If your circumstances have changed — for example, you went through a separation and no longer own property — it's well worth checking your eligibility.

Source: Sorted.org.nz, Kāinga Ora

How Much Can You Withdraw?

The good news: you can withdraw almost everything in your KiwiSaver account. This includes:

• ✅ Your personal contributions

• ✅ Employer contributions

• ✅ Investment returns (gains earned on your balance)

• ✅ Government contributions (member tax credits)

There are only a few things you cannot withdraw:

• ❌ $1,000 minimum balance — this must remain in your account at all times

• ❌ Australian superannuation transfers — any money transferred from an Australian complying super scheme stays locked in

• ❌ Government contributions received while living overseas without New Zealand permanent residency

A Practical Example

Let's say your KiwiSaver balance is $45,000. You could withdraw up to $44,000 towards your home purchase (the full balance minus the $1,000 minimum). If $3,000 of that was transferred from an Australian super fund, your maximum withdrawal would be $41,000.

If you're purchasing with a partner or friends, each person can make their own KiwiSaver withdrawal — you don't need to withdraw the same amount.

Source: ANZ KiwiSaver, Sorted.org.nz

The First Home Loan — Buying With Just a 5% Deposit

Most banks require a 20% deposit for a home loan. Under RBNZ rules, no more than 25% of a bank's new owner-occupier lending can have a loan-to-value ratio (LVR) above 80% — which is why that 20% deposit threshold exists.

But there's a way around it: the Kāinga Ora First Home Loan scheme.

How It Works

The First Home Loan is underwritten by Kāinga Ora, which means participating lenders can offer you a mortgage with just a 5% deposit — and typically at the same interest rate as someone with a 20% deposit. Because the loan is government-backed, it's exempt from RBNZ's LVR restrictions.

This is where your KiwiSaver withdrawal becomes especially powerful. Even a modest KiwiSaver balance can get you to that 5% deposit threshold when combined with personal savings.

Participating Lenders (as of March 2026)

The following banks and lenders currently offer First Home Loans:

• ASB (joined February 2026)

• Westpac

• Kiwibank

• The Co-Operative Bank

• SBS Bank

• Unity

• Nelson Building Society

• NZHL (New Zealand Home Loans)

ASB is the most recent addition, joining the scheme in February 2026. To apply, contact a participating lender directly — Kāinga Ora manages the approval process.

Source: RNZ (18 February 2026), Kāinga Ora

What Happened to the First Home Grant?

If you've been reading older guides or articles, you may have seen references to the First Home Grant (previously called the KiwiSaver HomeStart Grant). This was a government subsidy of up to $5,000 for existing homes or $10,000 for new builds, paid on top of your KiwiSaver withdrawal.

The First Home Grant was closed on 22 May 2024 at the direction of the government. Kāinga Ora is no longer accepting new applications.

The grant had income caps ($95,000 for a single buyer, $150,000 for two or more buyers) and regional house price caps. While it was a valuable benefit, the KiwiSaver first home withdrawal and the First Home Loan scheme both remain fully active — so there are still significant pathways to help you into your first home.

Source: Kāinga Ora (page updated 7 June 2024)

Step-by-Step: How to Withdraw Your KiwiSaver for a First Home

Here's the practical process for making your KiwiSaver first home withdrawal:

Step 1: Check Your Eligibility Early

Contact your KiwiSaver provider well before you need the funds. Most providers can issue an eligibility letter confirming whether you qualify. For example, ANZ members can check eligibility through the goMoney app or Internet Banking.

Don't wait until you've found a property — checking early lets you plan with confidence.

Step 2: Gather Your Documents

You'll typically need:

• Certified photo ID and proof of address

• A bank deposit slip for your solicitor's trust account

• A signed sale and purchase agreement for the property

• A letter of undertaking from your solicitor — either a conditional agreement (if using KiwiSaver as your deposit) or an unconditional agreement (if using it at settlement)

• A statutory declaration (which must be witnessed by a lawyer or Justice of the Peace)

Step 3: Submit Your Application

Complete your provider's first home withdrawal application form and submit it with your supporting documents. Your provider should begin processing within three business days of receiving everything.

Allow at least 10 to 15 working days for processing. Some providers may take longer, particularly during busy periods.

Step 4: Funds Arrive in Your Solicitor's Account

Your KiwiSaver money is paid directly into your solicitor's trust account — not to you personally. On settlement day, your solicitor combines it with any other deposit funds and transfers the full amount to the seller's solicitor.

Timing tip: If your KiwiSaver funds haven't arrived by settlement day, you won't be able to use them. We always recommend starting the withdrawal process as early as possible — ideally as soon as your offer is accepted — to avoid last-minute stress.

Source: Sorted.org.nz, ANZ

How KiwiSaver Works With Your Deposit and LVR Rules

Understanding how your KiwiSaver withdrawal fits into the bigger deposit picture is important.

The Standard Path (20% Deposit)

Under current RBNZ settings (updated 19 December 2025), most banks require a 20% deposit for owner-occupier home loans. If you're buying a $700,000 home, that means a $140,000 deposit.

Your KiwiSaver withdrawal counts towards this deposit. So if you have $50,000 in KiwiSaver and $90,000 in personal savings, you meet the threshold.

The First Home Loan Path (5% Deposit)

With a First Home Loan, you only need 5% — so that same $700,000 home requires just a $35,000 deposit. A solid KiwiSaver balance could cover most or all of it.

This path is exempt from LVR restrictions because Kāinga Ora underwrites the lending risk. It's specifically designed for first home buyers who are mortgage-ready but haven't yet saved a full 20% deposit.

Construction Loans

If you're building a new home, construction loans are also exempt from LVR restrictions. Combined with your KiwiSaver withdrawal, this can be another pathway with a lower deposit requirement.

Your mortgage adviser can help you work out which pathway gives you the best outcome based on your specific situation.

Source: RBNZ (updated 19 December 2025)

Common Mistakes to Avoid

In our experience helping first home buyers across New Zealand, these are the most common KiwiSaver pitfalls we see:

1. Starting the withdrawal too late. Processing takes 10–15 working days minimum. If you wait until a week before settlement, you risk not having the funds in time — and potentially losing the property.

2. Not checking your contribution history. You need three full years of regular contributions. If you took a savings suspension or had a gap in employment, check with your provider that you've met the threshold.

3. Assuming the First Home Grant still exists. The grant was closed in May 2024. We still see buyers planning around grant money that's no longer available. Focus on the withdrawal and the First Home Loan instead.

4. Forgetting about the $1,000 minimum. You can't withdraw your full balance — $1,000 must stay in your account. Factor this into your deposit calculations.

5. Not reviewing your fund choice before withdrawing. If your settlement is months away, your KiwiSaver balance is still invested and subject to market movements. Consider whether a more conservative fund is appropriate as you approach your purchase date.

6. Using KiwiSaver for building costs on land you already own. The withdrawal can only be used to purchase a home or land — not to fund construction on land you already hold, even if it was gifted or inherited.

Key Takeaways

• You can withdraw almost your entire KiwiSaver balance (minus $1,000) to buy your first home, after three years of contributions

• Government contributions, employer contributions, and investment returns are all included in your withdrawal

• The First Home Grant is no longer available (closed May 2024), but the KiwiSaver withdrawal and First Home Loan scheme remain active

• The First Home Loan lets you buy with just 5% deposit, at standard interest rates, through eight participating lenders

• Start the withdrawal process early — allow at least 10–15 working days before settlement

• Previous home owners may still be eligible through the Kāinga Ora "second chance" pathway

• Talk to a mortgage adviser to understand which deposit pathway works best for your situation

Ready to Use Your KiwiSaver Towards Your First Home?

Our team has over 20 years' experience helping New Zealanders navigate the first home buying process. Whether you're working out your KiwiSaver eligibility, exploring the First Home Loan, or ready to apply for a mortgage, we're here to help.

Book a free consultation — we'll walk you through your options and help you build a plan to get into your first home.

Written by the NZ Mortgage Solutions team | FSP666631

Last updated: 5 March 2026

Content on this website is general in nature and is not a recommendation, opinion or guidance to any individuals in relation to acquiring or disposing of a financial product. We recommend seeking advice from a qualified financial adviser before making any financial decisions. New Zealand Mortgage Solutions is a registered financial service provider (FSP666631) and is authorised to provide financial advice under the Financial Markets Conduct Act 2013.