KiwiSaver is one of the most powerful tools for getting into your first home in New Zealand. You can withdraw most of your savings — your contributions, employer contributions, investment returns, and the government contribution — to put toward a deposit. With typical first-home deposits now running at 20% for most lenders (10% with some), your KiwiSaver balance is often the difference between buying and renting.
Eligibility Criteria
You can withdraw your KiwiSaver for a first home if you meet all of these conditions:
- You have been a KiwiSaver member for at least 3 years
- You are buying your first home (you haven't owned a home before)
- You intend to live in the property (not an investment property)
- You are purchasing a home in New Zealand
- You meet the minimum withdrawal (at least $1,000)
If you've owned a home before, you may still qualify if you're in a "similar position to a first home buyer" — for example, after a relationship separation. Your provider makes that call on your application.
How Much Can You Withdraw?
You can withdraw:
- All of your own contributions (employee and voluntary contributions)
- All of your employer's contributions
- All investment returns (growth on your savings)
- Government contributions (the $260.72 per year payments)
You must leave a minimum of $1,000 in your account to keep it open.
Kāinga Ora Help in 2026: First Home Loan
The old First Home Grant (up to $10,000 for a new build) was scrapped in May 2024 and is no longer available. It has been replaced by the Kāinga Ora First Home Loan, which helps first home buyers with only a 5% deposit (most lenders want 20%):
- Deposit: from 5% (genuine savings, which can include your KiwiSaver)
- Income cap: $95,000 for a single buyer with no dependants; $150,000 for two or more buyers combined, or a single buyer with dependants
- No house price cap — your income effectively sets your ceiling
- Lender's Mortgage Insurance applies (a one-off premium, usually added to the loan)
The separate Kāinga Ora First Home Partner co-ownership scheme is currently full and not accepting new applications. Your KiwiSaver withdrawal can be combined with the First Home Loan.
How to Apply
- Get a sale and purchase agreement or a pre-approval letter from your lender
- Contact your KiwiSaver provider and request a first home withdrawal application
- Complete the application — your provider will usually need your lawyer's details
- Your provider sends the funds to your lawyer or conveyancer for settlement
Processing typically takes 5–10 working days, so start early — don't leave it until settlement week.
Common Mistakes
- Expecting the First Home Grant — it ended in May 2024; budget without it.
- Withdrawing everything including the $1,000 minimum — you must leave $1,000 or your account closes and you lose KiwiSaver membership benefits.
- Applying without a sale and purchase agreement or pre-approval — providers require proof of an intended purchase.
- Assuming both partners can withdraw independently — each person must meet the 3-year membership and first-home criteria.
- Forgetting the withdrawal is per-person — a couple can combine both balances, which is how many Kiwis reach a 20% deposit.
Example: How Much Can a Couple Withdraw?
Hana (5 years a member, $28,000 balance) and James (4 years, $19,000) each meet the 3-year rule and are first home buyers. Together they can withdraw $47,000 minus the $1,000 each must leave behind — $45,000 toward their deposit, tax-free. Combined with the Kāinga Ora First Home Loan (5% deposit), that puts a $600,000 Auckland or Wellington apartment comfortably within reach on a combined income under $150,000.
Deposit Planning Steps
- Check your membership start date — you need 3 full years in KiwiSaver
- Get pre-approval from a lender (or check First Home Loan eligibility with Kāinga Ora)
- Ask your provider for a current balance statement and a first home withdrawal application
- Budget for legal fees, building reports, and moving costs on top of the deposit
- Start the withdrawal 2–3 weeks before settlement — processing takes 5–10 working days
Two Reassuring Facts
The first home withdrawal is not taxed — it's your own money coming back to you, so there's no income tax and no deduction from any future NZ Super entitlement. And withdrawing doesn't end your KiwiSaver membership: contributions resume automatically from your next pay, keeping you eligible for employer matching, the government contribution, and future withdrawals.
Deep dive — 2026 update
Deposit maths: what the withdrawal is really worth
In the main centres a 20% deposit on a typical first home is the difference between a standard mortgage and a low-equity loan with an interest-rate premium. Using round 2026 market levels:
| Purchase price | 20% deposit | 10% deposit | Deposit shortfall to cover |
|---|---|---|---|
| $550,000 (Christchurch) | $110,000 | $55,000 | $55,000 |
| $700,000 (Wellington/Hamilton) | $140,000 | $70,000 | $70,000 |
| $900,000 (Auckland) | $180,000 | $90,000 | $90,000 |
Remember you must leave $1,000 in your KiwiSaver account after the withdrawal. A couple who have each been contributing 3.5% plus employer match for eight years on average wages typically hold $45,000–$75,000 between them — enough to matter, rarely enough on its own. Budget for the gap with a separate savings account and the KiwiSaver withdrawal as the final piece.
What you cannot use the withdrawal for
- Legal fees, valuation, builder's report or LIM — these run $3,000–$5,500 and come out of your own cash, unless your provider's withdrawal includes a deposit-only component.
- Renovations or repairs after settlement — not eligible; the withdrawal must go towards acquiring the property.
- A second home — the "previous home owner" pathway exists but Kāinga Ora must agree you are in the same financial position as a first-home buyer, which is a real test, not a formality.
Timeline that avoids a missed settlement date
- Before you make an offer: request your KiwiSaver balance letter (provider portal, usually instant, allow 3 business days for email).
- At offer time: keep the agreement conditional on finance for at least 10 working days.
- Immediately after the offer is accepted: submit the withdrawal application with the signed sale and purchase agreement, proof of identity, and the provider's form. Most providers take 10–15 business days end to end.
- Before settlement: the money is paid to your solicitor's trust account, not to you. Confirm the solicitor's account details with the provider in writing.
Start the paperwork at least three weeks before settlement. The single most common failure is an application submitted in the same week as the unconditional date.