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What is a KiwiSaver First Home Withdrawal?
If you have been a member of KiwiSaver for at least 3 years, you may be eligible to withdraw part of, or the majority of your fund towards your first home.
If eligible, you can withdraw all personal and employer contributions, and investment gains on your fund, including annual tax credits provided by the government. However, $1,000 must remain in the KiwiSaver account.
Where are my KiwiSaver funds held?
KiwiSaver funds are all held in trusts entirely seperate from your scheme provider, i.e. ASB, Generate or Simplicity. This allows your funds to be protected if anything were to happen to your scheme provider’s business.
Inland Revenue is the central administrator of KiwiSaver. This means any contributions made by you, your employer or the government gets paid to the IRD before being moved into the trust. This ensures your money gets to where it needs to be.
What do The banks require from my Scheme Provider for a pre-approval?
Banks require an estimate withdrawal letter from your scheme provider as proof of eligibility. The letter will show an estimate of the balance eligible to be withdrawn.
Can I use my KiwiSaver for a deposit on a property?
Yes, withdrawing some of your savings to pay a deposit on a property is possible. You will have to ensure you have completed the withdrawal application well in advance before the due date of the deposit. This is because it may take up to 10 working days to process your withdrawal application through your provider. It is common for first home buyers to use their solicitor to arrange this on their behalf.
If you have already gone unconditional and paid your deposit, the balance of your KiwiSaver will be paid to your solicitor’s trust account prior to the date of settlement. Again, it is crucial to allow 10 working days to process your withdrawal application.
Contact us if you would like further clarity, or a recommendation for one of our partnered solicitors to provide more advice.
Benefits of Getting Your First Home With Moose
Mortgage rates are constantly changing in today’s market. Broker departments in banks are known for providing competitive interest rates upfront for mortgage advisers
Fixed, floating or variable? 5 or 30 year loan term? Understanding your goals and situation can help us to structure your mortgage, allowing you to pay it off faster but still have the flexibility and freedom to live well
We are used to working with first home buyers and understand that you may require a bit more support. We will guide you through the entire process and answer all your questions
Our online application system allows you to create your own MOOSE account, and input your information without the hassle of tiresome paperwork. Once it is all uploaded, we do all the running around so you don’t have to
If you are applying for a Top Up up with a major bank there is no fee for our service. The major banks will cover our costs on your behalf as long as your new loan stays in place with them for a minimum of 27 months. This reduces your outgoings during the buying process
Re-explaining yourself can be frustrating when the last banker has moved on. We document all our client conversations and advice so we are always on the ball. You can depend on us to be there for a small Top Up, annual mortgage review, loan re-fix, refinance, or a new property purchase
Why Should I Use A Mortgage Adviser?
If you are applying for a Top Up with a major bank there is generally no fee for our service because the banks will pay us. However, this applies only if your loan is in place with that lender for a minimum of 27 months. This means it is affordable for clients to receive sound advice from registered financial adviser.
Moose is accredited with a large variety of banks. This enables us to provide our clients with non-biased and reliable solutions.
A second chance withdrawal may be possible, even if you have owned property before. This is provided that you look like a first home buyer.
Common scenarios we see are individuals following a separation and needing to sell their family home, with the intent of later buying back into the market. It is also common for business owners to sell their home to fund their businesses, with the intent to re-purchase in the future.
To find out if you are eligible you will need to complete an application through Kainga Ora, formally known as Housing New Zealand. Click here to apply.
If you have have successfully withdrawn your KiwiSaver for a first home, you will not be eligible for a second chance withdrawal. The second chance withdrawal is only available for people that have not used their KiwiSaver for a first home, but may have previously owned a home that was purchased without KiwiSaver.
A good loan structure should be prioritised over interest rates. The right structure could be reducing your mortgage by hundreds of thousands of dollars over the life of your loan. Everyone’s earning capacity is different.
People that earn wages, bonuses, or commissions should ask themselves, can I pay back more than my minimum repayments? If so, how much more could I pay off annually?
Understanding your goals allows us to create a structure which gives you the freedom to pay off more than your minimum repayments, without paying more interest.