A practical guide to using your KiwiSaver savings for a first home purchase — eligibility, timing, deposits, and key steps explained.
Am I eligible to use my KiwiSaver for my first home?
If you’ve been contributing to KiwiSaver for at least three years, you can usually withdraw most of your balance to put toward your first home. You’ll need to:
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Be buying your first property (or meet “second chance” criteria with Kāinga Ora).
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Live in the property as your main home.
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Leave at least $1,000 in your account.
What do I need to apply?
Your solicitor will help prepare the application, but generally you’ll need:
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Completed withdrawal form from your KiwiSaver provider.
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A signed and dated agreement for sale and purchase.
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Certified ID and proof of address (your solicitor can certify these)
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Undertaking from your solicitor that the funds will be used towards your first home purchase.
The funds are not paid to you - once approved, they are released into your Lawyer's Trust account to be applied to your purchase on your behalf.
Your solicitor gives a formal undertaking that the funds will only be applied to the purchase price of the property. Without this, your provider won’t release the money. If your purchase falls through, e.g you are unable to satisfy your finance condition, or avoid the contract because of the builders report condition, then the funds must be paid back to the KiwiSaver Providers. You are unable to use any of the funds towards any legal fees you may have incurred up to that point.
When Should I apply?
Timing is critical. Most KiwiSaver providers need 10 working days to process a withdrawal application or up to 15 working days if you have lived overseas, so make sure you apply early enough that your funds are available when settlement falls due.
If you require your funds for the deposit, then you should apply at least 10 working days before your last condition date. This ensures the withdrawal is processed in time for the deposit to be paid once your agreement becomes unconditional.
At auctions, deposits are due immediately on the fall of the hammer because the agreement is unconditional. Since KiwiSaver providers need processing time, you will usually need cash available for the auction deposit unless the seller agrees to a delayed deposit (you should check with the agent beforehand).
KiwiSaver funds can’t be used retrospectively. If they don’t arrive in time for settlement, you can’t use them later to reimburse any shortfall; they’ll be returned to your Kiwisaver Account.
Common misunderstanding about the deposit
Some get confused by the word deposit because it's used in two different ways:
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Agreement deposit - the 10% (or other agreed amount) written into the Agreement for Sale and Purchase. This is paid to the agent for the seller when the agreement goes unconditional (or immediately at auction).
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Bank Deposit (equity) - the amount of your own money you contribute toward the purchase price when applying for a home loan, usually 10-20% depending on bank requirements.
These are separate concepts. It's important to be clear which one is being referred to when arranging your KiwiSaver Withdrawal.
Key Points to Remember
Withdrawing your KiwiSaver for your first home isn't complicated, but it does require planning. The key things to remember are:
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you must have a signed Agreement for sale and purchase with you as the purchaser
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A Lawyer is required to complete and sign your application.
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Apply at least 10 working days before the funds are needed.
At Hobbs Law, we make sure these steps are completed properly so your funds are available on time and your first home purchase proceeds without stress.