Recent Changes to Kiwisaver are helping 'second chance' homeowners (July 2016)
If you've previously owned property but have low assets and earnings, you could still be eligible for a Kiwisaver first home withdrawal and the Kiwisaver Homestart grant.
Before applying to make a Kiwisaver first home withdrawal, you'll need to contact Housing New Zealand to see if you qualify.
You must meet the following eligibility criteria:
- You have not previously withdrawn savings from Kiwisaver to use towards the purchase of a first home.
- You have contributed to Kiwisaver for three or more years.
- You have previously owned a home, but at the time of your application, no longer have an interest in a property.
- You intend to live in the property.
- You have a deposit of at least 10% of the purchase price (this can include your Kiwisaver funds).
- Your assets are less than 20% of the house price cap in the area you are buying in ($500,000 is the price cap for an existing house in Wellington, or $550,000 for a brand new home).
If you meet all these conditions, apply to Housing New Zealand for a Letter of Determination to provide to your Kiwisaver provider - this letter proves you are eligible for the 'second chance' withdrawal. The letter can take up to four weeks to obtain, so it is important you apply to Housing New Zealand as soon as possible. To receive the Kiwisaver Homestart grant, you will need to still meet the eligibility criteria under this scheme.