Using KiwiSaver for your first home deposit in NZ

If you have been in KiwiSaver for at least 3 years, you can usually withdraw your savings to buy your first home, as long as you leave $1,000 in the account (and any money transferred from an Australian super scheme). The withdrawal covers your contributions, your employer's, the government contribution and returns; it is once only, the home must be one you will live in, and the money is paid to your lawyer or conveyancer. Two buyers with balances of $30,000 and $25,000 could withdraw $53,000 between them, enough for a 5% deposit on a home of up to $1,060,000. Banks decide; this is general information, not financial advice.

Who can make a first-home withdrawal

The rules are in the KiwiSaver Act 2006 (Schedule 1, clause 8) and summarised by IRD. In short:

• 3 years of membership. At least 3 years since your first contribution was received, or 3 years combined in KiwiSaver and complying superannuation funds. IRD: "You must be in KiwiSaver for at least 3 years before you withdraw funds for your first home."
• A first home. You must not have owned a property before, with limited exceptions in the Act (such as bare trusteeship and some leasehold, trust and Māori land interests).
• To live in. The home must be in New Zealand and be your principal place of residence. It cannot be an investment property.
• Once only. You can make a first-home withdrawal only once.

Second-chance buyers. If you have owned before, you may still qualify if Kāinga Ora issues a notice that your assets and liabilities are what would be expected of someone who has never owned a home. Your provider may refer you to Kāinga Ora; the details of that test are on Kāinga Ora's site.

How much you can withdraw

The most you can take out is your balance, less $1,000, less any amount transferred from an Australian complying superannuation scheme. IRD: "You must leave $1,000 in your account."

What you can withdraw, per IRD: your own contributions, your employer's contributions, the government contribution, returns ("interest earned") and any fee subsidies. What stays in: the $1,000 minimum, money transferred from Australia, and the old $1,000 kick-start (closed to new members since 21 May 2015). Some employer contributions above the compulsory rate may be locked in by your employer's scheme rules, so check with your provider.

Each buyer withdraws from their own account, and each must meet the rules. For a full, personal calculation, our sister site has a KiwiSaver first home withdrawal calculator.

Worked example: what KiwiSaver adds to a deposit

Two first home buyers have KiwiSaver balances of $30,000 and $25,000, both members for more than 3 years, and $60,000 in savings. They are looking at a $750,000 home.

Their $113,000 is about 15% of the price. It clears 5% and 10%, but is $37,000 short of 20%. Their options: keep saving, look at a lower price (at 20%, $113,000 supports a price of up to $565,000), use a bank's low-deposit allowance with a premium, or, if their income is within the cap, a First Home Loan. Upfront costs such as the lawyer and building inspection come on top, so do not commit every dollar to the deposit. Our deposit calculator does these sums with your figures.

Timing the withdrawal with settlement

The KiwiSaver Act says a first-home withdrawal is paid to your lawyer or conveyancer, against a sale and purchase agreement. That shapes the timing:

1. Before you look: check your balance and membership date, and confirm with your provider that you qualify. Ask how long it takes to process an application and what it needs.
2. At pre-approval: tell the bank how much you expect to withdraw, and ask how it wants that part of your deposit shown.
3. Once you have an agreement: your lawyer may help with the application, which goes to your provider with the agreement and other documents the provider asks for.
4. Settlement: the provider pays the money to your lawyer, who uses it towards the purchase.

Processing times are set by each provider, and IRD's page does not give one, so leave a margin before your settlement or deposit date. If an agreement falls through, ask your provider and lawyer what happens to an application already made.

If you are also applying for a First Home Loan, IRD notes you can use myIR to create a PDF of your income and KiwiSaver deductions to support your application to Kāinga Ora.

How fast KiwiSaver builds

Under current settings, an employee contributes at least 3.5% of pay (since 1 April 2026), the employer at least 3.5% (taxed by ESCT before it reaches the account), and the government adds 25 cents per dollar of member contributions, up to $260.72 a year (IRD, for members aged 16 to 65 with taxable income of $180,000 or less).

For someone on $65,000, that comes to about $2,275 of their own contributions, $1,595 from the employer after ESCT and $260.72 from the government: about $4,130 a year before investment returns or fees. Two such earners add about $8,260 a year to their combined first-home pot. We do not forecast returns, which can be negative in a given year. Our saving a deposit guide turns this into timelines.

One point on risk: if you plan to withdraw within a few years, the fund type matters, because a fall in value just before you buy reduces your deposit. Your provider or a financial adviser can explain the options.

KiwiSaver with a First Home Loan or a 20% deposit

KiwiSaver often decides which route is open to you. Two buyers who can withdraw $53,000 between them have, from KiwiSaver alone:

So with a First Home Loan, KiwiSaver alone can cover the deposit, though serviceability at the bank's test rate will usually set a lower price than $1,060,000. For a 20% deposit, KiwiSaver is usually a large part of the deposit rather than all of it. Our First Home Loan guide covers the income caps and premium, and the first home buyer planner combines KiwiSaver, savings and the First Home Loan for your price.

Joint buyers each need to qualify in their own right. If one partner has been a member for under 3 years, only the other can withdraw for now, so check both membership dates before you set a timeline.

Things to know before you rely on it

• It does not change the bank's tests. KiwiSaver adds to your deposit; it does not change the serviceability test at the bank's test rate (6.85% to 7.10%, test rates confirmed July 2026) or the DTI limit.
• The First Home Grant has closed. It closed to new applications on 22 May 2024, and we found no replacement for 2026.
• A change is before Parliament. The KiwiSaver (First Home or Farm) Amendment Bill, introduced on 31 August 2026, would add withdrawal routes for buying a farm and for some service tenants. It is not law yet.
• Your contributions continue. After the withdrawal your account stays open with $1,000 or more in it, and contributions carry on.

Banks decide; this is general information, not financial advice. Your KiwiSaver provider decides whether a withdrawal is approved.

Questions people ask

How long do I need to be in KiwiSaver to withdraw for a first home?

At least 3 years since your first contribution, or 3 years combined in KiwiSaver and complying superannuation funds (KiwiSaver Act Schedule 1 clause 8; IRD).

Can I withdraw all my KiwiSaver?

No. You must leave $1,000 in the account, and money transferred from an Australian super scheme cannot be withdrawn. Everything else, including employer and government contributions and returns, usually can.

Is the money paid to me?

No. It is paid to your lawyer or conveyancer against a sale and purchase agreement, and used towards the purchase.

I owned a home before. Can I still withdraw?

Possibly, as a second-chance buyer, if Kāinga Ora issues a notice that your financial position is what would be expected of someone who has never owned a home. The home must still be one you will live in.