Recent changes and conditions that may affect you accessing your KiwiSaver to buy

Withdrawing savings from KiwiSaver for your first home

  • You’ve contributed to KiwiSaver for three or more years.
  • You’ve never made a withdrawal from KiwiSaver to purchase home or land before.
  • The property you are buying is your main place of residence
  • You must leave a balance of $1,000 remaining in your KiwiSaver after the withdrawl.

Applying to make a first-home withdrawal

Once you have a conditional sale and purchase agreement for your first home or land, you can apply to withdraw your savings from KiwiSaver. Use these funds to purchase a freehold, leasehold or stratum estate – this could be an existing house, a vacant section on which you plan to build your home, an apartment off plan, or a house and land package.

Submit the following to your KiwiSaver provider at least 10 days before you need it (You cannot make a first-home buyer’s withdrawal once the property has settled):

  • A copy of the sale and purchase agreement, listing you as the purchaser.
  • A completed KiwiSaver Scheme First Home Purchase Withdrawal form.
  • A completed solicitor’s or conveyancing practioner’s letter.

Once the withdrawal is approved, the money will be paid directly to your solicitor to go towards the deposit under your sale and purchase agreement.

The balance of the amount withdrawn not used for a deposit will be held by your solicitor for settlement.

Second-chance homeowners

Recent changes to KiwiSaver are also helping “second-chance” homeowners. If you’ve previously owned property but have low assets and earnings, you could still be eligible for a KiwiSaver first home withdrawal and the KiwiSaver HomeStart grant.

Before applying to make a KiwiSaver first home withdrawal, you’ll need to contact Housing New Zealand to see if you qualify.

You must meet the following eligibility criteria:

  • You have not previously withdrawn savings from KiwiSaver to use towards the purchase of a first home.
  • You have contributed to KiwiSaver for three or more years.
  • You have previously owned a home, but at the time of your application no longer have an interest in a property.
  • You intend to live in the property.
  • You have a deposit of at least 10% of the purchase price (this can include KiwiSaver funds).
  • Your realisable assets are less than 20% of the house price cap in the area you are buying in.

If you meet all of these conditions, apply to Housing New Zealand for a Letter of Determination to provide to your KiwiSaver provider, proving that you are eligible for the “second chance” withdrawal. The letter takes up to four weeks to obtain so it’s important you apply to Housing New Zealand as soon as possible.

This information was provided by Mortgage Express.

Source.

Shannon CorbettComment