Embarking on your first home purchase, consider transitioning KiwiSaver from Kiwibank to Aurora Capital. Compare fees, assess investment options aligned with goals, and explore specialized plans. Seek professional advice, research both providers thoroughly, and beware of potential transfer fees for an informed decision.
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“Just started the process of buying my first home. I have had a meeting with a mortgage broker, and they have recommended changing the kiwisaver provider from Kiwibank to Aurora Capital on a first-home buyer plan. Would this be a wise move? Would it be best to change the kiwisaver fund option rather than the provider?”
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You’re embarking on the journey of purchasing your first home, and one of the initial steps involves a recommendation from your mortgage broker to consider transitioning your KiwiSaver provider from Kiwibank to Aurora Capital. This decision entails a broader choice between switching the entire KiwiSaver provider or merely adjusting the fund option within the existing provider.
When evaluating a shift in KiwiSaver providers, a primary consideration is the fee structure. It’s imperative to compare the fees associated with Kiwibank and Aurora Capital, as lower fees can substantially impact your overall returns, especially in the long term. Beyond fees, delve into the investment options provided by each institution. Analyse the risk and return profiles, aligning them with your individual risk tolerance, investment goals, and time horizon.
Given your first home buyer status, explore whether Kiwibank and Aurora Capital offer specialized plans or features tailored to your needs. Some KiwiSaver providers have schemes allowing early withdrawal of funds for the specific purpose of financing your first home. Understanding the terms and conditions associated with these offerings is crucial for making an informed decision.
Before finalising any decisions, seeking financial advice from a professional is highly recommended. A financial advisor can offer personalised insights, considering your unique circumstances, and guide you through the implications of switching providers or adjusting fund options. Additionally, conduct thorough research on both Kiwibank and Aurora Capital. Explore customer reviews, satisfaction ratings, and any recent changes in their services. Be vigilant about understanding potential penalties or fees linked to transferring your KiwiSaver account, ensuring transparency and minimising unforeseen costs in the process.
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.
