KiwiSaver first-home withdrawal

What it is

If you have been a KiwiSaver member for at least three years and are buying your first home to live in, you can usually withdraw most of your balance (you must leave $1,000 in the account). The withdrawal is paid to your lawyer's trust account, never to you directly, and it can be used for the deposit or for the balance at settlement.

Why it matters

Every provider has its own forms, its own turnaround and its own quirks. Some pay out in a few working days, some take close to three weeks. The money cannot be released until you have an agreement signed, and the withdrawal cannot be refunded easily if a deal falls over. That combination catches people out when they are bidding at auction or making a tight unconditional offer.

How we handle it

We check your eligibility and get the provider's confirmation letter before you make an offer, so you know the real number. We then time the withdrawal to the deal: deposit on signing, or settlement balance later, depending on which is safer for you. If you are buying at auction we build the KiwiSaver timing into the plan beforehand.

Common traps

• Assuming the full balance is available. You must leave at least $1,000 in, and savings transferred from an Australian super scheme can't be used.
• Trying to use KiwiSaver for a 10% deposit on auction day without the provider's money already in our trust account.
• E-signing the withdrawal form. Most providers still need a wet signature witnessed by us.
• Owning property before, even a share. There is a second-chance route but it needs Kainga Ora approval first.