What do I need to be aware of when using my Kiwisaver?

The number one issue to be aware of is timing.  If your agreement does not provide enough time for a finance condition or enough time between the unconditional date and settlement date, this will cause you big problems.  

It is important to engage a property lawyer as soon as possible. Good news – we can ensure this process runs smoothly and without any headaches for you.  

Worst case scenario, if we have not received your Kiwisaver funds prior to the settlement date, your options are:

o   You will have to pay the missing amount of money for you to settle and purchase the property. If you choose this option, you will ultimately forfeit the ability for you to withdraw your Kiwisaver funds until a later date (likely your retirement at 65);

o   You can delay settlement and pay daily penalty intertest to the seller until your Kiwisaver money is in your lawyer’s trust account; or

o   You can default on the agreement i.e. you don’t buy the property.  This means you will likely have to pay the seller and damages and forfeit your deposit.