For a KiwiSaver home withdrawal, meet eligibility criteria, initiate early, and communicate effectively. Distinct from Kainga Ora HomeStart Grant, pre-approval doesn't guarantee KiwiSaver eligibility, however a Sale of Purchase Agreement is necessary to qualify so you're on the right track. Seek professional advice from your lawyer and KiwiSaver provider for guidance.
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“I had a conditional S&P signed today. I want to withdraw from Kiwisaver, but I haven’t requested eligibility. I got Kainga Ora home grant pre-approval a few months ago. I’m not using the home grant, but I assumed I could get a withdrawal as I got this grant pre-approved. My question is if I can apply for withdrawal with an accepted conditional offer. I’m going to use the fund for settlement, which will be more than four weeks away. I got really worried as I saw a post that somebody couldn’t withdraw their kiwisaver as they applied after S&P signed, and they didn’t get an eligibility check prior to S&P signing. But I thought as long as I haven’t settled, I can withdraw kiwisaver as FHB. Could somebody clarify this?”
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Eligibility and Application Process:
Certain eligibility criteria must be met to withdraw funds from your KiwiSaver for a first home purchase, such as a minimum membership period. The withdrawal process typically involves applying through your KiwiSaver provider. Having a signed conditional Sale and Purchase Agreement (S&P) is usually a prerequisite, and conditions in the agreement must be met for the sale to proceed. It’s essential to understand these requirements and initiate the withdrawal process in a timely manner, ideally before the settlement date.
Kainga Ora HomeStart Grant Considerations:
While pre-approval for the Kainga Ora HomeStart Grant may be relevant, it’s essential to recognise that this grant operates independently of the KiwiSaver withdrawal process. The fact that you have pre-approval doesn’t automatically guarantee eligibility for KiwiSaver withdrawal. Therefore, it’s crucial to understand the distinct requirements and procedures for both the grant and the KiwiSaver withdrawal and to communicate effectively with the relevant authorities.
Timing and Communication Strategies:
Timing plays a critical role in a successful KiwiSaver withdrawal. Initiating the process well in advance is advisable to ensure all necessary steps are completed before the settlement date. Effective communication with your lawyer is vital, as they can guide your conditional offer’s implications and ensure alignment with KiwiSaver withdrawal requirements. Additionally, maintaining open contact with your KiwiSaver provider is essential to understanding their specific timelines and documentation needs.
Professional Advice and Guidance:
Given the potential complexities of the KiwiSaver withdrawal process and the specific details of your conditional offer, seeking professional advice is highly recommended. Please consult with your lawyer to discuss the intricacies of your situation, ensuring that the KiwiSaver withdrawal aligns with the terms of your conditional S&P. Moreover, contact your KiwiSaver provider for accurate and up-to-date information on their requirements. Relying on professional advice will help you navigate potential challenges and ensure compliance with the latest regulations.
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.
