Buying your first home is a huge milestone — but it can also feel overwhelming. Between rising property prices, navigating the home loan process, and saving for a deposit, the path to homeownership can feel just out of reach. That’s where KiwiSaver can play a powerful role — and where TAG – The Advice Group steps in to guide you every step of the way.
If you’re a first home buyer, your KiwiSaver account could be the key to making your home purchase a reality. In this blog, we break down everything you need to know about the KiwiSaver First Home Withdrawal, from eligibility to application, and how to make it work for your unique financial position.
What Is the KiwiSaver First Home Withdrawal?
The KiwiSaver First Home Withdrawal is a government-supported initiative that allows eligible members of a KiwiSaver scheme to withdraw most of their KiwiSaver funds to help with a first home deposit or settlement payment.
If you’ve contributed to your KiwiSaver scheme for at least three years, you may be able to withdraw your KiwiSaver to support the purchase of your first dwelling house or property. This includes existing homes, newly built homes, or even land.
Importantly, you must leave at least $1,000 in your account, and your KiwiSaver provider will pay the funds directly to your solicitor’s trust account, not to you personally.
At TAG, we work with solicitors and Kiwisaver advisers who support first home buyers through the withdrawal process, ensuring their KiwiSaver strategy supports not just the purchase, but also long-term success.
Who Can Use Their KiwiSaver for a First Home?
You may be eligible to make a withdrawal if you:
- Have been a KiwiSaver member for at least three years
- Are purchasing your first home, or are in the same financial position as a previous homeowner who no longer owns property
- Intend to live in the home — this must not be an investment property
- Have a Sale and Purchase Agreement (either conditional or unconditional)
- Meet the lending criteria of your home loan provider
You may also be eligible if you’ve previously owned property but have since experienced significant financial hardship or a relationship breakdown. This is known as a Second Chance Withdrawal, and Kāinga Ora must assess your financial position to determine if you qualify.
How Do I Apply to Withdraw My KiwiSaver?
To apply for a KiwiSaver First Home Withdrawal, you’ll need to:
- Contact your KiwiSaver provider and request a Home Withdrawal Form or KiwiSaver withdrawal application.
- Submit all supporting documents, including:
- Certified ID
- A completed solicitor’s letter
- A signed Sale and Purchase Agreement
- Proof of eligibility (e.g., if you’re a previous homeowner applying under the second-chance provision)
- Allow at least 10-15 working days for processing — so plan early!
The funds from KiwiSaver will be transferred directly into your solicitor’s trust account, typically on or before settlement day.
At TAG, we work with you and your solicitor to coordinate the withdrawal process, ensuring that your KiwiSaver money is released at the right time for your home or land purchase.
Choosing a KiwiSaver Provider
Before applying, it’s worth checking whether your current KiwiSaver scheme provider is the right fit, especially if you’re planning to withdraw funds soon.
When reviewing your KiwiSaver investment, consider:
- Investment performance
- Fund type (e.g., conservative, balanced, growth)
- KiwiSaver contributions (including employer contributions and voluntary contributions)
- Fees and charges
- Ease of the withdrawal process
Changing providers before you apply may delay your KiwiSaver First Home Withdrawal, so it’s best to seek professional advice before switching.
What Can I Use the KiwiSaver Funds For?
You can use your KiwiSaver funds for:
- The deposit on a purchase agreement
- The settlement amount on the settlement date
- The purchase of a home on Māori land
You cannot use the funds for legal fees, valuation costs, or to pay a real estate agent directly. The funds must contribute directly to the property purchase.
Remember: you must leave at least $1,000 in your KiwiSaver balance after withdrawal.
Getting the Timing Right
Many home buyers are caught off guard by the time it takes to apply to withdraw their KiwiSaver savings.
Don’t leave it until after your unconditional sale — delays can cause major stress at a critical time. The key is to apply for a first withdrawal early and work closely with a mortgage adviser, solicitor, and KiwiSaver scheme provider.
TAG ensures your KiwiSaver withdrawal, home loan, and property purchase timeline is all aligned. That means fewer surprises — and more time to focus on moving in.
Why TAG Clients Have a Smoother First Home Experience
At The Advice Group, our team combine mortgage advice, access to KiwiSaver advisers, and property guidance to give you a full view of your financial position.
We’re not just here for the purchase — we’re your long-term financial partner.
Final Thoughts
Your KiwiSaver scheme isn’t just for retirement — it’s one of the most powerful tools to help first home buyers take a big step up onto the property ladder. But timing, paperwork, and eligibility can quickly get complicated.
TAG simplifies the entire journey, helping you use your KiwiSaver funds confidently and make smart decisions that set you up for success. Whether you’re starting to save or ready to buy, we’ll help you turn your KiwiSaver into a deposit strategy that works.
Ready to Use Your KiwiSaver to Buy a Home?
Let’s Talk – Get a Free First Home Strategy Session with TAG.
Buying your first home is a big deal. We make sure it goes smoothly, from KiwiSaver to keys. Book a free call with one of our advisers today and get clarity on your next steps.
Frequently Asked Questions
Can I use my KiwiSaver if I owned a home in the past?
Yes — if you’re in the same financial position as a first home buyer, you may be eligible under the previous homeowners or Second Chance Withdrawal policy. Kāinga Ora will assess your financial position.
How long does a KiwiSaver withdrawal take?
It usually takes up to 10 working days for your KiwiSaver provider to process the withdrawal application and transfer the funds to your solicitor’s trust account. Apply early to avoid delays.
Can I use KiwiSaver for land or Māori land purchases?
Yes, you can use your KiwiSaver funds to buy Māori land or land to build a dwelling house, as long as you intend to live there.
Do I need a signed Sale and Purchase Agreement before I apply?
Yes — you must have a signed Sale and Purchase Agreement, and the withdrawal must be for a home purchase you intend to live in.
Can I use funds from an Australian super fund?
Funds transferred from an Australian complying superannuation scheme may be eligible, but not all superannuation fund types qualify. Check with your provider or adviser.
What happens if I switch KiwiSaver providers before withdrawal?
Switching could delay your application. It’s best to seek professional advice before making changes, especially close to a property purchase.