For most first-home buyers in New Zealand, KiwiSaver is the largest single part of the deposit. The rules are straightforward, but a few details regularly surprise people at application time.
You need 3 years of membership
You must have been a member of KiwiSaver (or a complying superannuation fund) for at least 3 years. It's membership time that counts, not the balance — and each buyer applies separately, so in a couple one person may be eligible before the other.
You must leave $1,000 behind
Whatever your balance, at least $1,000 must stay in your account. This keeps your membership active. It’s a small amount, but it means your withdrawable figure is never quite the number on your statement.
What you can withdraw
- Your own contributions
- Your employer's contributions
- Government contributions
- Investment returns earned on all of the above
What you can't withdraw
- The $1,000 minimum retained balance
- Any amount transferred in from an Australian complying superannuation scheme
- Government contributions you received while living overseas without New Zealand permanent residence
The Australian-transfer exclusion is the one that catches people out. If you moved back from Australia and consolidated your super into KiwiSaver, that portion is locked until retirement even though it shows in your total balance.
You must be buying a home to live in
The property must be in New Zealand and you must intend to live in it. Investment properties don't qualify. You also must not have made a first-home withdrawal before.
Previous home owners may still qualify
If you've owned property before, you may still be eligible through Kāinga Ora's “second chance” (qualifying previous home owner) determination, provided your realisable assets don't exceed 20% of the relevant regional house price cap. Allow at least 20 working days for that assessment.
The First Home Grant is gone; the First Home Loan isn't
The First Home Grant closed to new applications on 22 May 2024 and has no replacement. The First Home Loan is separate and still exists — it lets eligible buyers purchase with a 5% deposit, subject to income caps of $95,000 (single, no dependants) or $150,000(single with dependants, or two or more buyers combined). A Lender's Mortgage Insurance premium also applies; see Kāinga Ora for the current rate.