Navigating KiwiSaver for your home purchase? Expert insights on fast-tracking your KiwiSaver withdrawal, dealing with deposit issues, and seeking legal and government assistance in New Zealand. Don't lose hope; there's a solution!
___________________________________________
“A bit of of a stupid situation to be in. So to any first home buyers, don’t be like me and make sure you get your KiwiSaver withdrawal started ASAP.
Here I am 5 working days from settlement, and need to come up with the 15k I thought would be coming from KiwiSaver. I can make it work but just wondering where this went wrong, any way to utilise my KiwiSaver from here or am I stuck waiting for retirement?
Currently living in Aus, found a house we wanted [edit: in NZ], enlisted a conveyancer, made an offer on the house, offer was accepted. Then enlisted a mortgage broker, got a home loan approval using KiwiSaver first home withdrawal pre-approval statements as part of proof of deposit funds. With the shitload of forms and documents we’ve had to complete I only just realised we hadn’t done anything for the first home withdrawal. Conveyancer says we should’ve told them we were using KiwiSaver as part of our deposit. How was I to know that? They also say it wasn’t on the loan approval conditions, so weren’t alerted to it there.
Any one been in this situation before or can offer any advice otherwise? Anything I can do with my KiwiSaver now, or do I just keep eating crayons and wait for retirement?”
___________________________________________
I’m sorry to hear that you’re in this situation and there is no such thing as a stupid question when it comes to finances. It’s understandable to feel overwhelmed with the amount of paperwork and processes involved in buying a house. I can offer some general advice that may help you navigate this situation:
Contact Your KiwiSaver Provider:
Your first step should be to contact your KiwiSaver provider as soon as possible. Explain your situation and inquire about the possibility of a fast-tracked or expedited KiwiSaver withdrawal. Some providers may offer flexibility in certain cases.
Talk to Your Mortgage Broker:
Also, communicate with your mortgage broker regarding the oversight in including KiwiSaver in your deposit funds. They might have suggestions or recommendations for how to proceed or any potential workarounds.
Legal Advice:
It’s a good idea to consult with a legal professional or a conveyancer who specializes in property transactions. They can review your specific circumstances and provide tailored advice on how to proceed. They may also help you understand your rights and responsibilities in this situation.
Contact Your Conveyancer:
Talk to your conveyancer and discuss the options available. Sometimes, they might be able to renegotiate the terms of your property purchase, or they may have encountered similar situations before and can provide guidance.
Government Agencies:
It may be worthwhile to reach out to relevant government agencies in New Zealand that oversee KiwiSaver and property transactions for any potential assistance or guidance. They could clarify the requirements and provide insights.
Financial Assistance:
Explore whether you have any alternative sources of funds to cover the shortfall temporarily. Borrowing from family or friends, securing a short-term loan, or using any other available resources might help bridge the gap until you can access your KiwiSaver.
It’s important not to lose hope, as there might be a solution or a way to expedite your KiwiSaver withdrawal. However, it’s crucial to act swiftly, consult with professionals, and explore all available options to address this issue and avoid waiting for retirement.
Hope this helps.
Regards, Clive Fernandes (Financial Adviser)
Director – National Capital
Disclosure: I am the director of National Capital, a KiwiSaver advice firm. The views expressed in this article are the views of the author. The information provided is of a general nature and is not intended to be personalised financial advice. You may seek appropriate financial advice from a Financial Adviser to suit your individual circumstances or contact National Capital.
