KiwiSaver is an important source of finance for those who intend to use their KiwiSaver savings towards buying a first home. Thousands of Kiwis are using their KiwiSaver funds for their first home. If you’re a first home buyer considering KiwiSaver Withdrawal, here are four things to consider when wanting to use your KiwiSaver savings towards your first home deposit.
4 Things to consider
- Check that you qualify. Provided you’ve been a member of KiwiSaver and have been regularly contributing for at least three years, you may be able to withdraw your KiwiSaver savings to use towards your first home.
- If you’re unsure whether you qualify for KiwiSaver Withdrawal, check with your KiwiSaver provider and they can provide a letter of confirmation. Your mortgage adviser and lender will also need this letter when you apply for a mortgage.
- Eligible KiwiSaver members can withdraw all of their savings including tax credits, but $1,000 must remain in their KiwiSaver account. KiwiSaver Withdrawal cannot be used to buy an investment property, so you must intend to live in the property you plan to buy.
- Check the specific fund you are in. It may not be the right one if you are looking to use your KiwiSaver savings for your first home. Most KiwiSaver providers have a range of funds which you can choose from. Conservative’ funds focus on fixed interest, which provides lower but more stable returns. They’re often better suited for people with a shorter investment timeframe – such as first-home buyers who may want to withdraw their money soon. One way to do this is to go through a KiwiSaver HealthCheck – click here to start.
Thousands of Kiwis are using their KiwiSaver funds for their first home. Call National Capital Limited on 09-283 04 60 if you are after more information on this.
National Capital Limited – a licensed FAP specialising in KiwiSaver research and advice – has supplied us with informative articles on the subject of KiwiSaver, for publishing on the Mortgage Express website as well as for sharing with our clients. This article is the first one on this subject matter.
This article is reproduced with permission from National Capital Limited FSP771555. The article is of a general nature and does not constitute regulated financial advice for an individual client. It may not be relevant to individual circumstances. Nothing in this article is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this article. The views and opinions expressed in this article are those of National Capital Limited and not of Mortgage Express Limited or any of its directors, contractors, consultants, employees, staff, or financial advisers trading using the Mortgage Express brand. To the maximum extent permitted by law, Mortgage Express Limited and /or any of its directors, contractors, consultants, employees, staff, or financial advisers trading using the Mortgage Express brand disclaim any liability or responsibility to any person for any direct or indirect loss or damage that may result from any act or omission by any person in relation to, or in reliance on, the comments or information contained in this article.