Quick Answer
NZ first home buyers can withdraw most of their KiwiSaver savings — leaving a minimum $1,000 balance — to put towards a first home, provided they have been a member for at least 3 years. The withdrawal can be used for the deposit or purchase price of a property in New Zealand you intend to live in. There is no house price cap on KiwiSaver withdrawals. You must not have previously owned property in NZ (with limited exceptions). Applications are made through your KiwiSaver provider and typically take 10–15 working days.
What Is the KiwiSaver First Home Withdrawal?
The KiwiSaver first home withdrawal lets eligible first home buyers pull out most of their KiwiSaver balance to use as a deposit. It was designed to help New Zealanders get onto the property ladder faster by unlocking retirement savings early — without the money needing to be repaid.
It is one of the most powerful tools available to first home buyers in NZ, and when combined with the First Home Grant and First Home Loan, it can significantly reduce the deposit hurdle.
Who Qualifies?
You must meet all of the following conditions to make a first home withdrawal. If you are buying with a partner, each of you is assessed individually — one of you may qualify even if the other does not.
- You have been a KiwiSaver member for at least 3 years (continuous or total)
- You have never owned property in New Zealand or abroad (with limited exceptions — see below)
- You intend to live in the property you are buying (not use it as a rental)
- The property is in New Zealand
- You are a New Zealand citizen or have permanent residency
If you have previously owned property but are now in a similar financial position to a first home buyer, Kāinga Ora can assess you as a “second chance” buyer. This applies in situations like relationship breakdowns where you lost equity through a separation. Contact Kāinga Ora directly to discuss your situation.
How Much Can You Withdraw?
You can withdraw your full KiwiSaver balance minus $1,000. That $1,000 must remain in your account to keep it active. There is no upper limit on the amount you can withdraw.
If you are purchasing jointly, each buyer can make their own separate withdrawal. If one partner has owned property before but the other has not, the eligible partner can still make their withdrawal — you are assessed individually, not as a couple.
How to Apply — Step by Step
The application goes through your KiwiSaver provider (e.g. ANZ, ASB, Simplicity, Milford), not Kāinga Ora. Start early — the process takes 10–15 working days and must be timed carefully around your settlement date.
Apply as soon as you have a signed Sale and Purchase Agreement. Processing takes 10–15 working days, and delays can put your settlement at risk. Tell your lawyer the moment you apply so they can factor it into their settlement preparations.
Combining with the First Home Grant & First Home Loan
The KiwiSaver first home withdrawal works alongside two other Kāinga Ora schemes. Used together, these three tools can dramatically reduce how much of your own savings you need as a deposit.
Partner A has $28,000 in KiwiSaver. Partner B has $19,000. Together they withdraw $46,000 (full balances minus $1,000 each). They also qualify for the First Home Grant — $5,000 each for an existing home = $10,000. Combined deposit funding from schemes alone: $56,000.
Add their own savings and the First Home Loan (5% deposit) and a $600,000 home in Hamilton is within reach with a combined income of $150,000 or less.
Common Mistakes to Avoid
These are the errors that catch first home buyers out every year. Most are easily avoided if you plan ahead.
- Applying too late. The 10–15 working day processing window is a minimum, not a guarantee. If your provider is busy or your documents are incomplete, it can take longer. Apply the day you get a signed agreement.
- Giving your own bank details instead of your lawyer’s. The withdrawal goes to your lawyer’s trust account, not your personal account. Providers will reject the application if you submit personal bank details.
- Assuming a previous hardship withdrawal disqualifies you. A previous hardship withdrawal does not automatically disqualify you, but it may affect your membership length calculation. Contact your provider to confirm.
- Not checking fund performance before applying. If markets have fallen recently, your balance may be lower than expected. Check your balance before you commit to a purchase price so your deposit gap is accurate.
- Forgetting the First Home Grant application deadline. Your First Home Grant application to Kāinga Ora should ideally be submitted before you sign a Sale and Purchase Agreement, or included as a condition of the agreement. You cannot apply retrospectively after settlement.
- Switching funds at the wrong time. If you switch KiwiSaver providers while your withdrawal is being processed, it can reset the clock and significantly delay settlement.
What Happens to Your KiwiSaver After?
Your KiwiSaver account stays open after your withdrawal — you keep the remaining $1,000 balance and continue making contributions as normal. Your account simply resets to a much lower balance.
- Keep making KiwiSaver contributions — you are still building retirement savings and the government contributes $521/year if you contribute at least $1,042
- You do not need to repay the amount withdrawn — it is not a loan
- You cannot make another first home withdrawal in the future — it is a one-time use
- Consider reviewing your KiwiSaver fund type — now that you own a home, your risk tolerance for retirement savings may be different
Run the numbers on your first home purchase
Use our free NZ calculators to see exactly what you can borrow, your repayments, and how your KiwiSaver affects the deposit gap.