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Combining KiwiSaver and First Home Grant NZ — What You Need to Know

Updated

Many first home buyers in New Zealand expected to use both their KiwiSaver first home withdrawal and the First Home Grant together. Here’s the current state: the First Home Grant is closed, but other support remains available.


Important: The First Home Grant Closed in May 2024

The Kāinga Ora First Home Grant was permanently closed on 22 May 2024. No new applications are accepted. If you were planning to combine the First Home Grant with your KiwiSaver withdrawal, that option is no longer available.

This article explains:

  1. How the combination worked (for historical understanding)
  2. What assistance still exists for first home buyers in 2026

How It Worked (Historical — Grant Now Closed)

When the First Home Grant was open, eligible buyers could use it alongside their KiwiSaver first home withdrawal:

  • KiwiSaver first home withdrawal: Your personal contributions + employer contributions + government contributions + returns (minus $1,000 residual)
  • First Home Grant: A cash grant from Kāinga Ora of up to $5,000 for existing homes and $10,000 for new builds per eligible person (doubled for couples)

Together, a couple buying a new build could receive up to $20,000 in grants plus their combined KiwiSaver balances — all applied to the deposit.


What First Home Buyer Assistance Still Exists in 2026?

1. KiwiSaver First Home Withdrawal (Active)

The KiwiSaver first home withdrawal remains fully available. After 3 years of membership, you can withdraw most of your KiwiSaver balance to purchase your first home.

This is the primary financial assistance mechanism for most first home buyers.

See KiwiSaver first home withdrawal guide.

2. First Home Loan (Active)

The First Home Loan allows eligible buyers to purchase with a 5% deposit rather than the typical 20% required by major banks. It is a government-backed mortgage guarantee through Kāinga Ora, available through participating lenders (ANZ, ASB, BNZ, Westpac, Kiwibank, and others).

Eligibility:

  • Income caps apply (single: up to $95,000; couple/joint: up to $150,000 combined)
  • House price caps apply by region
  • Must be a first home buyer (or in same financial position)
  • Must live in the property

This is currently the most significant government assistance available to first home buyers. See First Home Loan 5% deposit guide.

3. Welcome Home Loan / Other Historical Names

The First Home Loan has operated under various names over the years (previously Welcome Home Loan). It is the same scheme, now administered by Kāinga Ora.


Can You Still Get a Deposit Boost?

Yes — even without the First Home Grant, there are ways to build your deposit:

SourceAmount available
KiwiSaver first home withdrawalYour full balance minus $1,000
First Home Loan (5% deposit pathway)Reduces deposit requirement significantly
KiwiSaver returns since joiningIncluded in withdrawal
Partner’s KiwiSaverCombined if buying together
Family giftingAccepted by most banks with a gift letter
Kāinga Ora HomeStart (closed)No longer available

Telling Your Mortgage Broker About KiwiSaver

When applying for a mortgage, tell your mortgage broker or bank:

  • Your KiwiSaver balance and eligible withdrawal amount
  • That you’re planning a first home withdrawal
  • Your KiwiSaver provider and fund type

They will factor the KiwiSaver withdrawal into your deposit calculation. The withdrawal amount is typically confirmed with your KiwiSaver provider and solicitor before it’s counted as part of your deposit.


What About People Who Applied Before the Grant Closed?

Applications submitted before 22 May 2024 continue to be processed by Kāinga Ora. If you applied before the closure and your property settled after, your grant was still honoured. New applications after that date are not accepted.