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First Time Buyer Mortgage Explained

The age old saying, "when one door closes, another one opens" appears to be a very real possibility for first time home buyers. Especially in New Zealand with the help of KiwiSaver and the 1st Home Grants.



IMPORTANT - Do not get muddled. Using KiwiSaver to help you with your deposit on your first home is also an independent option, as well as being an option combined with the First Home Grant.

Using KiwiSaver without combining this with a First Home Grant as follows:

NOTE - for specific rules with regards to making a withdrawal as a First Home Buyer or 2nd Chance Home Buyer - you will need to contact your KiwiSaver provider in this regards.

  • There is no regulation on limits with regards to the purchase price on the property to qualify for a withdrawal, there maybe limits however on the KiwiSaver scheme you are in. You need to find out this information from your KiwiSaver provider.

  • There is no regulation limit with regards to what your current earnings are, to able to withdraw KiwiSaver as part of your deposit, there maybe limits however in the scheme you are in. You need to find out this information from your KiwiSaver provider.

  • There is regulation with regards to the following:
    1. Individuals must have contributed to KiwiSaver for at least 3 years.
    2. Individuals only qualify if they do not currently own or have never owned real estate in New Zealand. IE they are a "First Time Home Buyer".
    3. Individuals that have previously owned real estate, but find themselves now, in a similar situation as a "First Time Home Buyer" may also qualify
    4. The property must be a owner occupied. It cannot be an investment property.
    4. You need to find out more information from your KiwiSaver provider.

Further to this, KiwiSaver assists in qualifying the FIRST HOME GRANT with restrictions on the purchase price of the property and current earnings of the individuals as follows:

  • Individuals that have been a member of KiwiSaver for 3 or more years may be able to withdraw some or all of the funds to put towards the buying their first home (this cannot be an investment property). This includes all contributions made, but will however exclude the government's one thousand dollar kick start payment made prior to the 21st of May 2015.

  • The KiwiSaver First Home Grant may be used in addition to the KiwiSaver funds but if the grant is used, there are policy restrictions. Click here to get more information

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