Rent, Buy or Own
Glossary for KiwiSaver home ownership features
Code compliance certificate
A code compliance certificate is a certificate under the Building Act that shows that building work has been completed against an application of a building consent — you have built what you have said you would build.
Complying fund
A registered employer sponsored superannuation scheme which allows members to choose to lock in 2 percent, 4 percent or 8t percent of their salary into an account which can only be accessed on the same terms as for a KiwiSaver Scheme. The member may also continue to contribute to an unlocked account. You do not get a $1,000 kick start contribution from the Government when you sign up.
Cross-lease (freehold and leasehold) title
Ownership of the land is shared and each owner leases their house from the other landowners. The cross lease agreement outlines the rights and obligations of the each owner.
Exempt employer scheme
An employer sponsored superannuation scheme which does not require a member to lock in any member contributions as required by KiwiSaver Schemes but does provide members with access to the deposit subsidy. New employees will be offered this scheme instead of KiwiSaver when they join the employer. They do not get the Government $1,000 kick start contribution or annual member tax credits.
Fee simple title
Owners of the land are entitled to unrestricted use of the land and may dispose of the land in any way they wish (subject to the relevant laws).
First-home buyer(s)
A first-home buyer(s) is an individual or group of individuals who have not owned a house before.
KiwiSaver first-home deposit subsidy (deposit subsidy)
You need to have been in a KiwiSaver scheme, complying scheme, or exempt employer scheme for a minimum of 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)
KiwiSaver first-home withdrawal (savings withdrawal)
You need to have been in a KiwiSaver scheme or complying fund for a minimum of three years. The first-home withdrawal allows you to withdraw all, or part, of your savings to put towards buying your first home. Government contributions are not paid out in the first-home withdrawal. This includes the $1,000 kick-start when you first join..
KiwiSaver scheme
Retirement savings scheme providing members with a $1,000 kick start and annual member tax credits from Government. Members choose to pay two percent, four percent or eight percent of salary or wages and the employer is required to pay two percent. The scheme name will include the word KiwiSaver.
Leasehold land title
The owner of the land with a fee simple title enters into a legal agreement (lease) to transfer the right to use the land to another person for a certain amount of time. The lease will detail the conditions including payment of rent to the landowner and the lease may be registered against the land title.
Minimum contributions
A minimum contribution is the lowest percentage of your income or benefit that you can contribute to your KiwiSaver to be eligible for the deposit subsidy.
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.
The contribution periods may change. For example you may have been a paid employee for one year, and then self employed for two years. This is acceptable as long as you were contributing the minimum contribution during both those periods, and they both add up to three years. This three year period can be longer than a calendar period, but must add up to three years.
Pre-approval
Pre-approval happens 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. Pre-approval expires 90 days after it has been granted. It can be extended upon application.
Previous home owner
An individual or group of individuals who have previously owned a house/land before. They may be eligible for the deposit subsidy and first home withdrawal if they meet certain conditions regarding their ownership of assets and their level of income.
Realisable assets
Realisable assets are belongings that you can sell to help buy a house. This can include savings, shares, land, boats and motor vehicles.
Housing New Zealand considers the following to be realisable:
- 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.
Stratum estate freehold and leasehold title
Common type of ownership for apartments. An undivided portion of a larger property is owned collectively and a smaller portion (the apartment or unit) is owned exclusively.
