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 It has been replaced by the Kāinga Ora First Home Loan, which helps first home buyers with only a 5% deposit (most lenders want 20%):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.

Next: Hardship and Serious Illness Withdrawal →

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.