Discover how KiwiSaver and personal savings work together to pave the way for homeownership in New Zealand. Learn about KiwiSaver withdrawals, the HomeStart Grant, and the importance of professional guidance for a successful home buying journey.
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“I’m in my mid-20s and was having a bit of a self-pity party thinking about how I’ll never be able to buy a house in this economy, then remembered my KiwiSaver is literally there for me to use on my first home. Did any of you use all of what was in your KiwiSaver, or was your deposit composed mostly of savings or gifted money? Maybe half and half?”
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KiwiSaver: A Fundamental Resource
For aspiring New Zealand homeowners, KiwiSaver is a fundamental resource for accumulating the necessary funds for a first home deposit. Members who have been part of KiwiSaver for a minimum of three years are eligible to withdraw both their own and their employer’s contributions, along with any investment returns. This withdrawal can significantly bolster the overall deposit, providing a tangible pathway to home ownership.
Government Assistance: KiwiSaver HomeStart Grant
Complementing the use of KiwiSaver, the government offers the KiwiSaver HomeStart Grant, an additional benefit aimed at assisting first-time homebuyers. The grant amount varies based on factors such as the duration of KiwiSaver contributions, the type of home being purchased, and its location. This grant serves as a valuable financial boost, further empowering individuals in their quest to secure their first home.
Personal Savings: A Complementary Approach
While KiwiSaver forms a substantial part of the deposit, many prospective homebuyers complement these funds with personal savings. This could encompass regular savings, term deposits, or other investment vehicles. The combination of KiwiSaver and personal savings offers a flexible and diversified approach, allowing individuals to tailor their financial strategy to meet specific deposit requirements.
Professional Guidance: Navigating the Homebuying Journey
To navigate the intricacies of utilising KiwiSaver and other financial resources effectively, seeking professional advice is crucial. Financial advisors and mortgage brokers can provide personalised guidance on KiwiSaver withdrawals, eligibility for the HomeStart Grant, and overall financial planning. This professional consultation ensures that individuals make informed decisions aligned with their unique circumstances, facilitating a smoother journey towards realising their dream of home ownership in the dynamic New Zealand housing market.
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.
