Save for a deposit
KiwiSaver, First Home Grant, First Home Partner and First Home LoanKiwiSaver, First Home Grant, First Home Partner and First Home Loan You've got a few options on getting help with building your home loan deposit and getting into your first home: KiwiSaver first home withdrawal and Kāinga Ora’s First Home Grant, First Home Partner and First Home Loan schemes. Let’s have a closer look at these options:
Features
You can withdraw some or (almost) all of your KiwiSaver funds to put towards your deposit or settlement of the property.
If you’re a first home buyer, you can apply for withdrawal of funds directly through your KiwiSaver provider. The first home grant and first home loan require an application to Kāinga Ora.
If you are buying a property with someone else, and they’ve been a KiwiSaver contributor for at least three years, they can also apply for the KiwiSaver first home buyer withdrawal. This will boost your deposit or the funds available for settlement.
For your convenience, in the Useful Links section below, we have compiled a list of KiwiSaver providers and where you can find their withdrawal forms.
Eligibility criteria
To qualify, you must:
Points to consider
Not all KiwiSaver funds allow withdrawals for this purpose, so check with your provider first.
Withdrawal of funds from your KiwiSaver account to buy a property is a one-time-only deal.
So, you can’t withdraw an amount from your fund for your deposit and then make another withdrawal when you settle the property. Keep this in mind when deciding on the amount you want to withdraw.
Features
This is a one-off payment from the government to put towards your purchase. You can choose between a pre-approval grant (valid for six months so you can start looking) or a full-approval grant (if you’ve found your future home and have a signed sale and purchase agreement).
The amount of the grant will vary depending on how long you’ve been contributing to KiwiSaver and whether you’re buying an existing property or a new build (this also includes the purchase of land).
Existing property grant
New build (or land) grant
Two or more borrowers can combine their first home grants. For example, a couple who’ve both contributed to KiwiSaver for five years could be eligible for grants totaling $20,000.
If the pre-approval grant expires before you’ve bought a property, you will need to re-apply for it.
Eligibility criteria
To qualify, you must:
Points to consider
The maximum amount you can borrow will depend on the region in which you intend to buy, and whether it’s an existing home or will be a new build. Full details of these regional price caps are available on the Kāinga Ora website.
Features
Open to New Zealand citizens* over 18 years of age, Kāinga Ora’s First Home Partner functions as a shared (or co) ownership model.
This means although you’re the majority homeowner, Kāinga Ora is a third-party shared owner of the property and the relationship between you is governed by a Shared Ownership Agreement. Your house is on its own title, and you and Kāinga Ora co-own the home together as tenants in common.
Kāinga Ora will contribute up to a certain amount towards the price of the property, giving them an equivalent ownership share. You then pay that amount back to them until you’re the sole homeowner.
If for instance you have a 5% deposit for the house you want to buy, and a bank is willing to lend you 75%, Kāinga Ora would contribute the remaining 20% of the house (giving them a 20% ownership stake).
The maximum amount Kāinga Ora will contribute towards a home purchase is 25% or $200,000 – whichever amount is lower.
*This covers New Zealand citizens, permanent residents, or resident visa holders who are “ordinarily resident in New Zealand”; OR if you’re applying with someone who meets the citizenship or residency requirements, and you are married to or in a civil union or de facto partnership with that person.
Eligibility criteria
To qualify, you must:
Points to consider
Along with meeting the criteria set out by Kāinga Ora, you’ll also need to meet any lending requirements of any bank participating in the First Home Partner programme.
Kāinga Ora will not use or occupy your home, and they’re not going to tell you what to hang on your walls, but as a shared owner they will have some say. Be aware that you will need to seek their approval if you want to sell the property or make major improvements / renovations.
You will be responsible for the costs associated with buying a house such as legal advice, bank processing fees and conveyancing costs.
You’re also in charge of paying for all standard home ownership costs including rates, insurances, maintenance, and body corporate or residents’ society levies (if applicable).
As the endgame is for you to become sole owner of the home, you’ll be expected to meet annually with a Kāinga Ora Relationship Manager to review your household financial situation to see how you’re tracking towards that goal.
Ideally, you will have purchased Kāinga Ora’s share of the home from them within your first 15 years of ownership, but you must have purchased their share in full by the 25th anniversary of the original settlement.
Features
The First Home Loan scheme helps buyers who have low deposits. You only need a minimum of 5% deposit, making it that much easier to get onto the property ladder.
First Home Loans are underwritten by Kāinga Ora and issued by a select number of banks and lenders. This product allows lenders to provide home loans that would otherwise fall outside of their standard lending policies.
Eligibility criteria
To qualify, you must:
In addition to the above criteria, you will need to meet the home loan requirements of the participating bank or lender.
Have a look at the useful links below for more information or reach out to our lending specialists by calling 0800 4 TELLA or sending us a message in the chat bubble below.
Points to consider
Buying a property with a smaller deposit (5% deposit) generally means a higher loan amount and a higher repayment amount.
Over the life of your loan there may be extra fees due to the smaller deposit size and the additional time it will take you to repay.
The maximum amount you can borrow will depend on the region in which you intend to buy, and whether it’s an existing home or will be a new build. Full details of these regional price caps are available on the Kāinga Ora website.
Can I apply for more than one form of assistance to buy my first home?
Yes, for example you can use the KiwiSaver First Home withdrawal and the Kāinga Ora First Home Grant, however you will need to complete a separate application form for each, one with your KiwiSaver provider and the other with Kāinga Ora.
Can I buy a house with less than a 10% deposit?
If you meet certain criteria, 10% may be enough for you to buy a home. The KiwiSaver First Home Loan scheme allows for a 5% deposit, but you will also need to meet the lending conditions of your selected bank or loan provider. On average though, you'll need a 20% deposit for a home you intend to live in and a 40% deposit for an investment property.
Can I use funds from my employer superannuation plan as a deposit?
Some employers have workplace superannuation plans into which they (and you) make contributions. These funds are similar to KiwiSaver funds. Check with your workplace superannuation provider as to whether you can access them to use for a home loan deposit.
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