Buying guide

Using KiwiSaver to buy your first home: how it works

Saving a deposit can be hard for first home buyers. Luckily, KiwiSaver and other schemes can help you out.

Last updated: 18 September 2026

AI summary

Using your KiwiSaver is a powerful way to fund your first home deposit. To make a KiwiSaver First Home Withdrawal, you must be a member for at least three years and intend to live in the property.

Apply through your provider after signing a sale agreement, but allow 10-15 working days for processing to avoid settlement delays. You can also explore the First Home Loan, a Kāinga Ora-backed scheme allowing eligible buyers to purchase with a 5% deposit, subject to income caps.

In this article you’ll learn:

How KiwiSaver withdrawals work for your first home purchase
How the First Home Loan scheme works
Who is eligible for the First Home Loan

Saving a deposit is the hardest part of buying a first home and for most Kiwi, KiwiSaver is the biggest lever available to close that gap. Here's exactly how it works, who qualifies, and how to make sure your withdrawal lands in time for settlement.

Can I use my KiwiSaver to buy a house?

Yes - if you meet the eligibility criteria for a First Home Withdrawal. You'll need to:

Have been a member of KiwiSaver (or a complying superannuation fund) for at least three years
Be buying your first home, or land to build your first home on, in Aotearoa New Zealand
Intend to live in the property for at least six months
Not have made a first home KiwiSaver withdrawal before

If you've owned property before but no longer do, and you're in a similar financial position to a first home buyer, you may still qualify - you'll need an eligibility confirmation letter from Kainga Ora first. Ownership of Maori land doesn't disqualify you either.

Buying with a partner or a friend? Each person's eligibility is assessed separately - if your partner has used a KiwiSaver withdrawal before but you haven't, you can still withdraw your own share as long as you meet the criteria yourself.

Using KiwiSaver can make the maths on buying your first home a little less scary.

You can withdraw your full KiwiSaver balance - including your own contributions, your employer's contributions, government contributions, interest earned, and any fee subsidies - down to a minimum of $1,000 left in your account. There are two exceptions: you can't withdraw amounts transferred in from a complying Australian super scheme, and you can't withdraw government contributions received for any period when you weren't an NZ permanent resident.

Not all providers handle withdrawals the same way, and not every provider even offers them - check directly with yours, and if they don't, ask about switching before you're up against a deadline.

How to apply for KiwiSaver withdrawal

Your KiwiSaver withdrawal is processed by your provider directly - not by Kainga Ora or your lender - so the first step is contacting them or finding their first-home-withdrawal page.

Get an estimate or pre-approval early. Even months out from buying, ask your provider for an estimate of what you can withdraw, or apply for pre-approval. Your bank will often want this for home loan pre-approval too.
Apply once you have a signed, conditional sale and purchase agreement. You'll typically need: photo ID, proof of address, the signed agreement naming you as purchaser, a completed first home withdrawal form (sometimes needing a JP or lawyer's witnessing), a letter of undertaking from your solicitor, and a bank deposit slip for your solicitor's trust account. If you've owned property before, add your Kainga Ora eligibility letter.
Allow enough time. Most providers process a withdrawal within 10 working days (15 if you've lived overseas as a member). But timing is the single biggest risk in this process - build in a longer conditional period than your provider's quoted turnaround, because funds that aren't ready by settlement day can't be used, full stop.

If your funds aren't ready in time, your options narrow fast: cover the shortfall another way, negotiate a delayed settlement (usually with penalty interest), or withdraw from the purchase and wear the penalties. Talk to your solicitor early about how to structure your conditional period to avoid this.

Getting Kiwisaver-ready before you buy

If you know you're buying in the next few years, a few things are worth reviewing with your provider or a financial adviser:

Increasing your voluntary contributions to build your balance faster
Moving to a more conservative fund as your purchase gets closer, so a market dip doesn't shrink your deposit right when you need it
Contributing at least $1,042.86 of your own money each financial year to receive the full $521.43 government contribution

Your KiwiSaver manager will help you apply for your withdrawal.

The First Home Loan: using KiwiSaver alongside a low deposit

Many first home buyers pair their KiwiSaver withdrawal with a First Home Loan, which lets you buy with as little as a 5% deposit instead of the usual 20%, underwritten by Kainga Ora through participating lenders.

To qualify, you'll generally need to:

Be earning under the income cap - currently $95,000 before tax for a single buyer with no dependants, or $150,000 for a single buyer with dependants or for two-or-more buyers combined
Be a first home buyer, or in a similar financial position to one
Have at least 5% of the purchase price as deposit
Not own any other property, and intend to live in the home you're buying

How much you can borrow is capped by region (higher in Auckland than provincial areas), and you'll usually pay a lender's mortgage insurance premium on top. Not every bank offers it - check with your bank or a mortgage broker. For the full picture on government-backed support beyond KiwiSaver, see our guide to government help for first home buyers.

You'll need to check the eligibility criteria if you're going to apply for the First Home Loan.

How much deposit do you actually need?

KiwiSaver is usually one part of a bigger deposit picture. For a full breakdown of typical deposit sizes and how KiwiSaver, family help, and low-deposit lending fit together, see how much deposit you need to buy a house in New Zealand.

Getting the right advice

KiwiSaver withdrawal rules and First Home Loan eligibility both change periodically, and getting the timing wrong can put your purchase at risk. Talk to your KiwiSaver provider and a mortgage adviser early - ideally before you start house hunting in earnest - so you know exactly what you're working with.

*We hope this article has provided some helpful information. It's based on our experience and is not intended as a complete guide. Of course, it doesn’t consider your individual needs or situation. If you're thinking about buying or selling a property, you should always get specific advice.