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Rent, Buy or Own

Buying a home with KiwiSaver (as a previous property owner)

KiwiSaver is a voluntary, work-based savings initiative to help you with your long-term saving for retirement. It has a range of membership benefits including contributions from your employer and the government, as well as help with buying your first-home.

KiwiSaver offers two features to help you into home ownership:

  • the KiwiSaver first-home deposit subsidy
  • the KiwiSaver first-home withdrawal.

You can use both of these features to:

  • buy a home
  • buy land to build a home on.

Even though you have previously owned property, you may still be eligible for the deposit subsidy and savings withdrawal.

Role of Housing New Zealand

Housing New Zealand administers the deposit subsidy and your scheme provider administers the first-home withdrawal. Housing New Zealand is also involved in the savings withdrawal if you are a previous property owner, but no longer have a share in a property. Our role is to determine if you are in the same financial position as a first-home buyer.

Deposit subsidy

You can apply for the deposit subsidy if you have belonged and contributed to a KiwiSaver scheme, complying fund or exempt employer scheme for at least three years.

The subsidy is $1,000 for each year of contribution to the scheme:

  • 3 years of contributing = $3,000 (the minimum you can get)
  • 4 years of contributing = $4,000
  • 5 years of contributing = $5,000 (the maximum you can get)

You can buy a property with other people who may also qualify for a deposit subsidy.

You may only receive the deposit subsidy once.

Deposit subsidy application for a previous property owner

Step 1: Check you are eligible for the deposit subsidy:

  • I am 18 years or older
  • I have not received a deposit subsidy before
  • I am a member of a KiwiSaver scheme, complying scheme or exempt employer scheme.
  • I have contributed at least the minimum percentage of my income to a KiwiSaver scheme, complying scheme or exempt employer scheme for at least three years. (From 1 July 2007 to 31 March 2009 the minimum contribution was 4 percent of your income, 4 percent of minimum wage for non-earners or 4 percent of your yearly benefit for beneficiaries. From 1 April 2009, the minimum contribution was reduced to 2 percent of your income, 2 percent of minimum wage for non-earners or 2 percent of your yearly benefit for beneficiaries).
  • I have a combined yearly income of $100,000 or less (before tax) (for one or two buyers), or I have a combined yearly income of $140,000 or less (before tax) (for three or more buyers)
  • I am buying one of the following types of property and land arrangements: (for more information on these property types — see our FAQs or talk to your lawyer)
    • Fee Simple
    • Stratum estate freehold and leasehold
    • Cross-lease (freehold and leasehold)
    • Leasehold
  • As a previous home owner, I do not have realisable assets totalling more than 20 percent of the house price cap for the area I am buying in. Realisable assets are belongings that you can sell to help buy a house. For example if you were buying a house in the $300,000 cap area, your realisable assets cannot be worth more than $60,000. Housing New Zealand considers the following to be realisable assetsMoney in bank accounts (including fixed and term deposits)
    • Shares, stocks and bonds
    • Investments in banks or financial institutions
    • Building society shares
    • Net equity in property or land (not being used as your home)
    • Boat or caravan (if the value is over $5,000)
    • Other vehicles (such as classic motorbikes or cars — not being used as your usual method of transport)
    • Other assets valued over $5,000.

Step 2: If buying a house, land to build a house on, or an apartment that is being built you will need to meet the following criteria:

  • you must not own any other property
  • you must buy a house within the maximum house price caps. The house price caps are $400,000 for Auckland City, North Shore City, Rodney District, Wellington City and Queenstown Lakes District and $300,000 for all other areas. Manukau City, Waitakere City, Franklin District and Papakura District are considered ‘other areas’. The new Auckland boundaries under the new Auckland council does not take effect until 1 November. The house price caps will be reviewed then
  • you must live in the house for at least six months (if you don’t, you have to pay the deposit back)
  • you cannot use the deposit subsidy to buy an investment property
  • if you are buying land, the house must be built within 12 months of purchase. You will need to supply a code compliance certificate to show that this has been done
  • if you are building on land or buying an apartment that is being built, you must show:
    o you will have funding for the construction of the building
    o the total cost of both the land and the house or apartment is within the house price caps
    o the land or site is ready to build on.

Step 3: Apply to Housing New Zealand

Applying as a previous home owner is the same as for first-home buyers. There is just an extra section on the application form to detail any realisable assets you may have.

There are two ways to apply, depending on your circumstances.

  1. Apply for a pre-approval if you have not found a house or land to build on, but want to find out if you are eligible before you start house/land hunting. The pre-approval expires after 90 days, unless you apply for an extension. On the application form, tick the pre-approval option. Return to us with the required documents (see our FAQ’s for these documents) and we will check your eligibility.
  2. Skip that process and apply for the deposit subsidy directly if you already have found a house or land, and have a sale and purchase agreement. Please note that Housing New Zealand requires at least four weeks from submitting an application through to paying out the deposit subsidy to your lawyer.

Application forms are available from the following sources:

For more information, read our FAQs

First-home withdrawal

After three years membership of a KiwiSaver scheme, or complying fund you may be able to withdraw:

  • your savings
  • employer contributions
  • all returns (interest etc)

Government contributions are not paid out in the first-home withdrawal. This includes the $1,000 kick-start when you first join.

First-home withdrawal application for a previous property owner

If you are:

  • a first home buyer - contact your KiwiSaver scheme provider or qualifying scheme provider to apply
  • a previous home owner — follow the steps below.

Step 1: Check you are eligible for the savings withdrawal:

  • I have not received the first-home withdrawal before.
  • I have previously owned a home, but no longer have a share in a property.
  • I have a combined yearly income of $100,000 or less (before tax) (for one or two buyers) or, I have a combined yearly income of $140,000 or less (before tax) (for three or more buyers).
  • I do not have realisable assets totalling more than 20 percent of the house price cap for the area I am buying in. Realisable assets are belongings that you can sell to help buy a house. For example if you were buying a house in the $300,000 house price cap area, your realisable assets cannot be worth more than $60,000. Housing New Zealand considers the following to be realisable assets:
    • Money in bank accounts (including fixed and term deposits)
    • Shares, stocks and bonds
    • Investments in banks or financial institutions
    • Building society shares
    • Net equity in property or land (not being used as your home)
    • Boat or caravan (if the value is over $5,000)
    • Other vehicles (such as classic motorbikes or cars — not being used as your usual method of transport)
    • Other assets valued over $5,000.

Step 2: Apply to Housing New Zealand

Complete an application form and Housing New Zealand will determine you are eligible. You can use the same form as the KiwiSaver first-home deposit subsidy — just tick the box for first-home withdrawal.

You can download the application form and instructions.

Other home ownership assistance

Welcome Home Loan

You may be able to use the Welcome Home Loan product for a home loan with the KiwiSaver home ownership features. The Welcome Home Loan assists anyone who has little or no deposit to buy a house. Welcome Home Loan criteria applies in addition to KiwiSaver feature criteria.

To find out more about the Welcome Home Loan:

Welcome Home First Steps

If you want to learn more about buying a house there is a free home ownership course called Welcome Home First Steps:

Kāinga Whenua

Kāinga Whenua helps Māori achieve home ownership on their multiple-owned ancestral land.

For more information about Kāinga Whenua:

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