|Thinking of buying your first home?|
|Kiwisaver has TWO features that could help Purchasers buy their first home – the Kiwisaver HomeStart Grant and the Kiwisaver First Home Withdrawal. There is quite often confusion between the TWO features and they differ significantly as follows:
Kiwisaver HomeStart Grant
This is applied via Housing New Zealand (not the Kiwisaver provider) and has specific criteria which includes the following:
The grant for purchasing an existing home is between $3,000.00 and $5,000.00 ($1,000.00 per year of contributions, up to a maximum of five years) and the grant for purchasing a new home is between $6,000.00 and $10,000.00 ($2,000.00 per year of contributions, up to a maximum of five years).
Kiwisaver First Home Withdrawal
This is applied via the Kiwisaver provider and has specific criteria which includes the following:
There is no house price cap or salary cap.
Both the Kiwisaver HomeStart Grant and the Kiwisaver First Home Withdrawal have one thing in common – the money must only be used to purchase a first (or second chance) home and cannot be used for an investment property.
|Not the first home?
Purchasers may still be eligible to use a Kiwisaver First Home Withdrawal as a Second Chance Purchaser. Housing New Zealand will need to determine if they are still in the same financial position as that of a first home buyer.