The short answer
How does a KiwiSaver first-home withdrawal work with a mortgage?
If you meet the scheme's eligibility rules, you may be able to withdraw most of your KiwiSaver balance toward a first home after at least three years of membership. Check eligibility and the available amount with your provider early. Your lender, lawyer and KiwiSaver provider each have separate steps, so the money needs to be available at the right point in the purchase.
Check the actual withdrawal amount
Ask your KiwiSaver provider for an eligibility and balance estimate; do not treat the full displayed balance as immediately available. Previous owners may need an additional eligibility determination. Your provider and Kāinga Ora can confirm the process relevant to you.
A lender may ask for evidence of your expected withdrawal as part of its deposit assessment. If family help or savings also contribute, keep the sources clear.
Discuss timing with your lawyer
A purchase can require a deposit under the sale and purchase agreement before settlement. Ask your lawyer when the KiwiSaver withdrawal can be used in your particular transaction and what paperwork must reach the provider. Timing can differ between an agreement deposit and payment at settlement.
Do not promise a vendor a payment date based only on your account balance. Check the provider's processing requirements, your lawyer's instructions and the finance condition before committing.
Keep the mortgage affordable
KiwiSaver may improve your deposit position but does not replace the lender's assessment of income, commitments and the property. Allow for ownership costs and a buffer after settlement.
For your own situation
What to have ready
- Provider confirmation of eligibility and estimated withdrawal
- Membership period and any previous ownership issue
- Lawyer's agreement deposit and settlement dates
- Lender's deposit evidence requirements
- Other cash needed for costs
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General information only. Rates, policies and eligibility can change. Personal advice depends on your circumstances and the terms actually available.