For many New Zealanders, KiwiSaver is the single biggest source of deposit funds when buying their first home. After three years as a KiwiSaver member, you may be able to withdraw most of your balance — along with employer and government contributions — to put toward a property purchase.
This guide covers everything: eligibility rules, how much you can withdraw, how to apply, the First Home Grant, the First Home Loan (5% deposit), and timelines to plan around.
For the full KiwiSaver overview, see the KiwiSaver Complete Guide NZ. For a quick eligibility check, jump to the first home withdrawal eligibility guide.
What Is the KiwiSaver First Home Withdrawal?
The KiwiSaver first home withdrawal allows eligible members to withdraw their KiwiSaver balance — including their own contributions, employer contributions, and investment returns — to help purchase their first home in New Zealand.
A minimum of $1,000 must remain in the account after withdrawal. Everything above that threshold can be withdrawn, subject to eligibility.
This is separate from:
- The First Home Grant (administered by Kāinga Ora — up to $10,000 per person for existing homes, $20,000 for new builds)
- The First Home Loan (a Kāinga Ora-backed mortgage allowing 5% deposit)
All three can be used together, significantly boosting your purchasing power.
First Home Withdrawal Eligibility — The Key Rules
You are eligible for a KiwiSaver first home withdrawal if you meet all of the following criteria:
1. You have been a KiwiSaver member for at least 3 years
The 3-year clock starts from the date you first enrolled in KiwiSaver — not from when you started contributing, and not from when contributions first reached your account.
If you transferred from an Australian superannuation fund, the time counted may differ — check with your provider.
2. You are a first home buyer (or equivalent)
You must be purchasing a property you have never owned before. However, there is an exception: if you have previously owned a home but are in a similar financial position to a first home buyer — for example, after a relationship separation or significant financial hardship — you may still qualify. This is assessed by Kāinga Ora. See the second-chance withdrawal guide.
3. You will live in the property
The property must be your primary residence. You cannot use the KiwiSaver withdrawal for:
- Investment properties
- Holiday homes / baches
- Properties you will rent out entirely
- Land without a dwelling (in most cases)
- Build-to-rent arrangements
See Can I Use KiwiSaver to Buy a Second Home or Investment Property?
4. The property is in New Zealand
The KiwiSaver first home withdrawal is only available for properties located in New Zealand.
5. You meet any applicable purchase price caps (for First Home Grant)
Note: The KiwiSaver withdrawal itself has no purchase price cap — you can use it to buy a property of any value. However, the First Home Grant (a separate government grant) has income and house price caps. If you plan to apply for both, check the First Home Grant eligibility separately.
How Much Can You Withdraw?
You can withdraw your full KiwiSaver balance minus $1,000. This includes:
- Your own contributions (employee contributions)
- Your employer’s contributions (net of ESCT)
- The government Member Tax Credit (if received)
- All investment returns and growth on the above
Example:
- Your total KiwiSaver balance: $38,500
- Minimum you must leave: $1,000
- Maximum you can withdraw: $37,500
For a detailed breakdown of how to estimate your withdrawal amount, see How Much Can I Withdraw from KiwiSaver for My First Home?
There is no maximum withdrawal limit — if your balance is $150,000, you can withdraw $149,000.
The First Home Grant — Up to $20,000 Extra
Separate from your KiwiSaver withdrawal, the First Home Grant (administered by Kāinga Ora) provides an additional cash grant:
| Property type | Per person | Couple (both eligible) |
|---|---|---|
| Existing home | Up to $5,000 | Up to $10,000 |
| New build | Up to $10,000 | Up to $20,000 |
To qualify for the First Home Grant, you must:
- Have been a KiwiSaver member for at least 3 years
- Meet income caps: under $95,000/year for a single buyer, under $150,000/year combined for two or more buyers
- Purchase within house price caps (which vary by region — Auckland caps differ from Dunedin, for example)
- Not currently own any property
- Intend to live in the property for at least 12 months
Important: The First Home Grant is a separate application to Kāinga Ora and has its own house price thresholds. As of 2026, these caps are:
| Region | Existing home cap | New build cap |
|---|---|---|
| Auckland | $625,000 | $700,000 |
| Wellington | $550,000 | $650,000 |
| Canterbury | $500,000 | $600,000 |
| Other regions | $425,000 | $500,000 |
Caps are subject to change — always verify current figures at kaingaora.govt.nz before applying.
See the full First Home Grant guide and our guide to combining KiwiSaver with the First Home Grant.
The First Home Loan — 5% Deposit
The First Home Loan (also backed by Kāinga Ora, and offered through select lenders including ANZ, ASB, BNZ, Westpac, Kiwibank, and Co-operative Bank) allows eligible first home buyers to purchase with as little as 5% deposit — compared to the standard 20% most lenders require under RBNZ LVR restrictions.
Eligibility:
- Income caps: under $95,000/year single, under $150,000/year combined
- Must be a New Zealand citizen, resident, or work visa holder with 12+ months remaining
- Must intend to live in the property
- No house price cap (as of 2026 — check for any updates)
Your KiwiSaver withdrawal counts toward the 5% deposit. This is a powerful combination: your KiwiSaver balance + the First Home Grant could together make up the entire 5% deposit, allowing you to buy with very little additional savings.
See KiwiSaver and the First Home Loan (5% Deposit) for a full breakdown.
How to Apply for a KiwiSaver First Home Withdrawal — Step by Step
Step 1: Confirm your eligibility
Check the eligibility criteria above. Confirm your KiwiSaver membership start date (log in to myIR or contact your provider). Confirm the property will be your primary residence.
Step 2: Find a property and get an accepted offer
The withdrawal application is typically submitted after you have a signed sale and purchase agreement. You will need to provide details of the property.
Your conveyancing solicitor (lawyer) will manage the withdrawal process on your behalf — this is standard practice in NZ property transactions.
Step 3: Your solicitor applies to your KiwiSaver provider
Your lawyer contacts your KiwiSaver provider and requests the withdrawal. They will need:
- A copy of your signed sale and purchase agreement
- Confirmation of your IRD number
- Proof of identity (if not already on file)
Step 4: Provider assesses and approves the application
Your KiwiSaver provider verifies your eligibility (membership duration, first home buyer status) and approves the withdrawal. This typically takes 5–10 business days.
Step 5: Funds are released to your solicitor’s trust account
The funds go directly to your solicitor — not to you personally. They hold the money in a trust account until settlement day.
Step 6: Settlement
On settlement day, your solicitor uses the KiwiSaver funds (plus your other deposit funds and mortgage drawdown) to complete the purchase.
For the complete timeline from application to settlement, see the KiwiSaver first home withdrawal timeline.
For a printable checklist, see the KiwiSaver first home withdrawal checklist.
Timing: When to Apply
The most important timing consideration is that the KiwiSaver withdrawal takes time to process — typically 5–10 business days from when your provider receives the application.
Your solicitor will initiate the application as soon as your sale and purchase agreement is signed and any conditions (e.g., finance and building report) are satisfied. Standard NZ property settlements allow enough time for this, but tight settlement timelines (under 2 weeks) can create pressure.
Key timing points:
- Apply as soon as conditions are satisfied on your S&P agreement
- Allow at least 10 business days for your provider to process
- Do not apply before you have a signed S&P agreement — providers need the property details
- If you are using the First Home Grant, apply to Kāinga Ora early — their processing can take up to 30 days
Choosing the Right Fund in the Lead-Up to Buying
If you are planning to use KiwiSaver for a first home purchase within the next 1–3 years, your fund type choice matters significantly. A market downturn just before your withdrawal could substantially reduce your deposit.
General guidance:
- 3+ years from buying: a balanced or growth fund may still be appropriate, but consider moderating risk
- 1–3 years from buying: shift to a conservative or moderate fund to protect your deposit
- Under 12 months from buying: a cash or conservative fund is appropriate — capital preservation is the priority
The cost of being in a conservative fund for 2–3 years before you buy is modest compared to the risk of losing 20–30% of your deposit in a market downturn. See How to Choose a KiwiSaver Fund for the full framework.
After You Buy: Re-enrolment and Re-contribution
Once you have made the first home withdrawal, your KiwiSaver account remains open with the $1,000 minimum balance. You continue to contribute through payroll as normal — the withdrawal does not affect your ongoing membership or future contributions.
Your employer continues to contribute at 3% on top of your salary. The Member Tax Credit continues to accrue.
If you withdrew a large portion of your balance and want to rebuild your retirement savings after buying, consider increasing your contribution rate — see How to Increase KiwiSaver Contributions.
Common Questions and Scenarios
Buying with a partner — can you both withdraw?
Yes. If both partners are KiwiSaver members and both meet the eligibility criteria (3 years membership, first home buyer), both can withdraw their KiwiSaver balances for the same property purchase. Both can also apply for the First Home Grant separately (subject to income and price caps).
What if one partner is not eligible?
If one partner does not meet the 3-year membership requirement or has previously owned a home (and does not qualify for the second-chance exception), only the eligible partner can withdraw. The other partner’s balance remains invested.
Can I use KiwiSaver to buy a new build?
Yes — and new builds attract a higher First Home Grant ($10,000 per person vs $5,000). There are also different settlement timing considerations for new builds — the KiwiSaver withdrawal timing aligns with settlement, which for a new build may be significantly after the initial contract is signed. See KiwiSaver First Home New Build vs Existing Property.
Can I use KiwiSaver for a house and land package?
Yes, subject to conditions. See Using KiwiSaver for a House and Land Package NZ.
What if my application is declined?
Providers can decline a first home withdrawal if you do not meet the eligibility criteria. The most common reasons are: membership under 3 years, the property is not your primary residence, or you have previously owned a home (and do not meet the second-chance criteria). See KiwiSaver First Home Withdrawal Denied.
Frequently Asked Questions
Do I need to pay back the KiwiSaver withdrawal?
No. The first home withdrawal is not a loan — it is a permanent withdrawal of your own savings. You do not need to repay it. However, your future retirement balance will be lower as a result, so some buyers choose to increase their contribution rate after purchasing to rebuild.
Can I withdraw my KiwiSaver if I already own land?
Generally no — owning land (with or without a dwelling) is considered owning property. There are some limited exceptions. See Can I Use KiwiSaver to Buy Land?.
Does the 3-year period restart if I change providers?
No. The 3-year period counts from your original KiwiSaver enrolment date, regardless of how many times you have changed providers.
Can I use the First Home Withdrawal and still claim the Member Tax Credit?
Yes. The withdrawal is a one-time event. After withdrawal, your contributions continue and the MTC accrues on future contributions as normal.
Is the KiwiSaver withdrawal taxed?
No. The withdrawal itself is not subject to income tax. PIE tax on investment earnings is handled inside the fund throughout the life of the account.
How long does it take for the money to reach my solicitor?
Typically 5–10 business days from when your provider receives the complete application from your solicitor. Allow extra time if your account holds illiquid assets.
Can I use KiwiSaver for a deposit on an off-the-plan apartment?
In most cases, yes — but the timing of the withdrawal is tied to settlement, which for off-the-plan purchases can be 12–24 months after contract signing. Talk to your solicitor early to plan the timing.
Summary
KiwiSaver first home withdrawal at a glance:
- Eligible after: 3 years KiwiSaver membership
- How much: Full balance minus $1,000
- Who applies: Your conveyancing solicitor on your behalf
- Timeline: 5–10 business days to process once application submitted
- Combined with: First Home Grant (up to $20,000 per couple for new builds) and First Home Loan (5% deposit)
- Fund type to use in lead-up: Conservative or cash in the 1–3 years before purchase
- After withdrawal: Account stays open, contributions continue, balance rebuilds
For personalised advice — especially if you have a complex situation (previously owned property, partnership separation, shared ownership) — speak with a licensed financial adviser. The FMA’s adviser register and sorted.org.nz are good starting points.