KiwiSaver is becoming an increasingly popular tool for first home buyers. If you are looking to buy your first home, you might have considered withdrawing your KiwiSaver funds to put towards your deposit.
In this article, we will explore KiwiSaver as an essential tool for first-home buyers and how you become eligible to make a withdrawal.
To be eligible, you must have been contributing to your KiwiSaver for three years or more, and you must intend on living in the house for six months after settlement.
Your KiwiSaver provider processes applications for a first home KiwiSaver withdrawal. Your provider will require some supporting documents to approve your application, including a statutory declaration signed by a lawyer.
Most KiwiSaver providers require at least 10 – 15 working days to process an application for a first home withdrawal, so it is essential when submitting your offer to purchase a property that you make sure there is enough time between the agreement being unconditional and the date of settlement for your application to be processed. We recommend that you check first with your KiwiSaver provider about the time frame before submitting your offer.
If your KiwiSaver provider is unable to process your application in time, your savings will not be made available to you on settlement and you may not have enough funds to complete the purchase. Your KiwiSaver provider will also not pay out your savings after the settlement date.
KiwiSaver is an excellent tool for first-home buyers when actioned correctly. Please feel free to get in touch with us if you would like us to assist with completing the statutory declaration or any part of your KiwiSaver first home withdrawal application.
For more information
If you would like further information on whether you may be eligible for a first home KiwiSaver withdrawal, please contact our Wellington lawyers Andrew Stewart, email firstname.lastname@example.org, phone (04) 495 8921 or Sam Thomson, email email@example.com, phone (04) 495 8931.