Buying guide
Second chance Kiwisaver: Buying your second home
Even if you’ve previously owned a home you may still be able to use your Kiwisaver for a deposit
Last updated: 13 June 2024
The Kiwisaver first home withdrawal is only for buying your first home, right? Not quite. In some limited circumstances you may be able to use the money in your Kiwisaver to purchase a home, even if you’ve owned one previously.
Here’s everything you need to know to check if you’re eligible and can apply for a withdrawal.
Are you eligible to use your Kiwisaver for your second home?
To use your Kiwisaver balance to buy a home that’s not your first, you’ll need to tick a few boxes. For one, you must meet the normal eligibility requirements:
Have been a member of Kiwisaver for a minimum of three years.
Intend to live in the home you’re buying or building.
Not have withdrawn Kiwisaver to buy a home before.
Be buying land or property in Aotearoa, New Zealand.
You’ll also need to meet a few other requirements specific to the second chance withdrawal:
You no longer own any shares or interest in any property (this doesn’t include ownership of Māori land).
You don’t have any realisable assets equal to more than 20% of the house price cap for an existing home in the area you’re looking to buy. Realisable assets include cash or investments in the bank, shares, stocks or bonds, boats and caravans, vehicles or other assets valued over $5,000.
Read more about realisable asset caps on the Kāinga Ora website here.
Applying for a second chance Kiwisaver withdrawal is easy.
Applying for a second chance Kiwisaver withdrawal
To apply for a second chance Kiwisaver withdrawal you’ll need to go through your Kiwisaver scheme provider to withdraw funds as usual. Most providers offer an online application for Kiwisaver withdrawal, but with some you’ll need to contact them directly.
As well as this, you’ll need to apply to Kāinga Ora, who will assess whether or not you’re in the same financial position as a first home buyer. Once they’ve made their assessment they’ll produce a letter to confirm that you’re eligible and send it to your Kiwisaver provider.
To start a Kāinga Ora application click here.
Note: you may also be eligible for a Kiwisaver First Home Grant even if you’ve purchased property in the past. If you’d like to apply for both a withdrawal and a grant, you’ll need to make two separate applications.
Receiving the funds
Once your application is complete and you’re ready to go, your Kiwisaver provider will administer the withdrawal. If approved, your solicitor will receive the funds on the day before settlement.
This process may take some time so it’s important to make sure your settlement is long enough to allow enough time for it to come through. If you’ve got more questions about buying a home and applying for a second chance Kiwisaver withdrawal, speak to a mortgage broker with experience in Kiwisaver withdrawals - and mention you’re going to withdraw your Kiwisaver to your lawyer as soon as you start property hunting.
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