For many New Zealanders, KiwiSaver is the most significant source of first home deposit money they have. After 3 years of membership, you can withdraw most of your balance — potentially $20,000, $40,000 or more — to put towards purchasing your first home.
This guide covers eligibility, how much you can withdraw, the process, and timing.
How the KiwiSaver First Home Withdrawal Works
The KiwiSaver first home withdrawal is not a loan — it’s a permanent withdrawal of your own savings. The money leaves your KiwiSaver account and goes towards your property purchase. It does not need to be repaid.
The trade-off is that withdrawing reduces your retirement savings and gives up the future compound growth that money would have generated. That’s a real cost — but for most first home buyers, the benefit of homeownership outweighs it.
Am I Eligible?
You must meet all of the following:
1. KiwiSaver membership duration
You must have been a KiwiSaver member for at least 3 years. The clock starts from your first contribution date, not your joining date. If you joined but didn’t make a contribution for six months, your 3-year clock started from your first contribution.
2. First home buyer status
You must be buying your first home. Specifically, you must not currently own any residential property — in NZ or overseas.
Second-chance provision: If you’ve owned property in the past but no longer do, you may still qualify if Kāinga Ora determines your financial position is comparable to a first home buyer. Apply to Kāinga Ora for a determination.
3. Intended use
You must intend to live in the property as your main residence for at least six months after purchase. Investment properties do not qualify.
4. Property price cap
The property must be within Kāinga Ora’s regional house price caps:
| Region | Existing property | New build |
|---|---|---|
| Auckland | $875,000 | $925,000 |
| Wellington | $750,000 | $800,000 |
| Christchurch/Queenstown-Lakes | $650,000 | $700,000 |
| Hamilton/Tauranga/Western Bay/Kapiti Coast | $650,000 | $700,000 |
| Other NZ | $600,000 | $650,000 |
These caps are set by Kāinga Ora and reviewed periodically. Check kaingaora.govt.nz for current figures.
Note: There is no price cap on the KiwiSaver withdrawal itself if you’re not using the First Home Loan. The caps above are Kāinga Ora’s caps that apply to both the First Home Loan and the withdrawal eligibility. If you’re buying a property above the cap, check with your KiwiSaver provider — eligibility may still exist in some cases. But the standard interpretation ties the withdrawal to the First Home Loan caps.
How Much Can I Withdraw?
You can withdraw your entire KiwiSaver balance minus $1,000. The $1,000 minimum must remain in your account to keep it active.
Your balance includes:
- Your own contributions (salary deductions)
- Employer contributions
- Government Member Tax Credits (MTC) received since June 2015
- Investment returns (gains or losses)
Note: Any government MTCs received before 1 July 2015 must be repaid to the Crown. Your KiwiSaver provider will deduct this automatically if applicable — it mainly affects people who joined KiwiSaver in its early years (2007–2015) and haven’t been a member for decades.
Example withdrawals
| KiwiSaver balance | Maximum withdrawal |
|---|---|
| $15,000 | $14,000 |
| $30,000 | $29,000 |
| $50,000 | $49,000 |
| $75,000 | $74,000 |
| $100,000 | $99,000 |
Two Buyers: Double the Withdrawal
If two people are buying together, each can make their own first home withdrawal — significantly boosting the combined deposit.
Example:
- Buyer 1 balance: $45,000 → withdraw $44,000
- Buyer 2 balance: $38,000 → withdraw $37,000
- Combined KiwiSaver withdrawal: $81,000
Combined with personal savings, this can comfortably cover a 20% deposit on a $500,000–$600,000 property, or substantially more than cover a 5% First Home Loan deposit.
The Application Process
The process runs in parallel with your mortgage application. Allow 15 business days for your provider to process the withdrawal — start this well before settlement.
Step 1: Contact your KiwiSaver provider
Request the first home withdrawal application form from your KiwiSaver provider. Each provider has their own form and process.
Step 2: Complete the application
You’ll need to provide:
- Proof of your intent to purchase (sale and purchase agreement, or confirmation from your lawyer)
- Evidence of your property purchase (signed agreement, lawyer’s confirmation)
- A statutory declaration confirming you meet the eligibility criteria
Step 3: Provider submits to IRD
Your provider verifies eligibility with IRD and checks for any pre-June 2015 MTCs that need to be repaid.
Step 4: Funds transferred
Once approved, the funds are transferred directly to your solicitor’s trust account to be applied at settlement. The money does not go to you directly.
Timing is critical
Apply to your KiwiSaver provider as soon as your sale and purchase agreement is signed. Do not wait until a week before settlement — processing takes up to 15 working days and delays can cause settlement complications.
KiwiSaver Withdrawal vs Keeping the Money for Retirement
This is a genuine trade-off worth thinking about:
Cost of withdrawing $50,000 at age 30: At 6% returns over 35 years (to age 65), $50,000 would grow to approximately $385,000. Withdrawing it “costs” you that future growth.
Benefit of homeownership:
- Forced savings via equity build-up
- Protection from rent increases
- Capital gains (not guaranteed, but historically positive in NZ over long periods)
- Stability and quality of life benefits
Most financial planners consider the withdrawal worth it in most circumstances — particularly when the alternative is continuing to rent while saving slowly. But the retirement cost is real and worth understanding.
If you remain a KiwiSaver member after the withdrawal (even with $1,000 balance), contributions continue to build and the long-term retirement outcome can still be strong — especially if you’re younger.
What If I Haven’t Been a Member for 3 Years Yet?
You must wait until you reach 3 years from your first contribution. If you’re at 2 years and 6 months, waiting 6 more months is straightforward.
Actions to take in the meantime:
- Increase your contribution rate to build the balance faster
- Ensure you’re maximising the MTC by contributing $1,042.86+ per KiwiSaver year
- Choose an appropriate fund — a balanced or growth fund is likely appropriate if you’re 2+ years from purchase
Frequently Asked Questions
Can I use KiwiSaver if the property is above the price cap? Generally no — the withdrawal is tied to Kāinga Ora’s price caps. Speak to your provider if your situation is borderline.
Does using KiwiSaver affect my mortgage application? Lenders expect you to use your KiwiSaver. Include a current balance statement in your mortgage documents. The withdrawal amount counts as part of your deposit.
What happens if the purchase falls through? If you don’t complete the purchase, the withdrawn funds must be returned to KiwiSaver within five business days (minus any reasonable legal costs incurred). The money is returned to your account.
Can I use KiwiSaver for a property I’m building? Yes — the withdrawal can be used for a new build as well as an existing property, provided all eligibility criteria are met.
Further Reading
- First Home Buyer Guide NZ 2026 — the complete pathway
- How Much Deposit Do I Need? — deposit targets by property price
- First Home Loan (Kāinga Ora) — buy with 5% deposit using KiwiSaver
- Saving for a House Deposit NZ — building your deposit alongside KiwiSaver
- KiwiSaver Complete Guide — everything about KiwiSaver