Buying your first home is an exciting milestone—and for many Kiwis, KiwiSaver plays a huge part in making it possible. One of the most common questions we get from first-home buyers is: "How do I actually use my KiwiSaver for my deposit?"
Let’s walk through how it works!
How much can you use?
Most first-home buyers have between 5% and 10% of the purchase price in their KiwiSaver, though sometimes it can be more. This is usually enough to form part or all of your deposit.
You can apply to withdraw nearly all of your KiwiSaver balance as long as you meet the criteria for a first-home withdrawal.
Making an offer
When you make an offer on a property, make sure to include a finance clause of up to 15 working days—ideally the full 15. That timeframe gives your solicitor enough time to work with your KiwiSaver provider, withdraw the funds, and get that money ready to be paid to the vendor when you go unconditional.
Sometimes it can take a while for KiwiSaver funds to be processed and transferred, so having that buffer helps keep everything stress-free and smooth.
When is the deposit paid?
That deposit is usually paid on the day the contract goes unconditional.
Unconditional means you’ve completed your due diligence—this might include getting a valuation, reviewing the building report and LIM, and having your solicitor check the legal aspects of the property.
When you’re happy and ready to go unconditional, your solicitor will arrange for your KiwiSaver funds to be paid directly to the real estate agent’s trust account.
Talk to the agent about flexibility
Most sale & purchase agreements require a 5% or 10% deposit, with 10% being the more common figure. It is always negotiable though, so it’s a good idea to talk to the real estate agent about what works best for them and their vendor.
If you’ve got questions or you’re at the stage of making an offer, we’re here to help make it all super clear and easy.
Book a call with one of our advisers and they'll be able to help you move through every step of the way.