Can you use KiwiSaver to buy a house or any property?
Yes. Most KiwiSaver members can use their savings to help buy their first home or first block of land in New Zealand, provided they meet a handful of eligibility rules. This is known as a KiwiSaver first-home withdrawal, and you apply for it directly through your KiwiSaver scheme provider, not through the government.
Who is eligible?
To qualify for a first-home withdrawal, you'll generally need to:
- have belonged to KiwiSaver, or a complying superannuation fund, for at least three years
- not have made a KiwiSaver withdrawal to buy a home or land before
- intend to live in the property as your main home
- be buying a home or land located in New Zealand.
Investment properties don't qualify under this scheme. If you're buying with a partner, friend, or family member, each of you can apply to withdraw from your own KiwiSaver account.
Can previous homeowners qualify?
If you've owned a home before but don’t any longer, you might still qualify under what's called the “second-chance” provision. Kāinga Ora–Homes and Communities assesses whether your financial position is now similar to a first-home buyer, based on your income, assets, and liabilities.
If confirmed by Kāinga Ora, they'll send a letter to your KiwiSaver provider, who then processes your withdrawal application as usual. This determination is separate from your provider's own eligibility checks, so it's worth starting the process early.
Can you buy land with KiwiSaver?
Yes. You can use your KiwiSaver savings to buy land to build your first home on, as long as you intend to live there once it's built. You also have to prove that you have the right to build on that land.
A first-home withdrawal can't generally be used to pay for building costs if you already own the land, since this isn't treated as buying a property.
KiwiSaver first-home withdrawal rules
How long do you need to be in KiwiSaver?
You need to have belonged to KiwiSaver, or a complying superannuation fund, for at least three years before applying. If you were automatically enrolled through your job, this three-year period usually starts from when your contributions were first deducted from your pay, rather than from your official join date.
How much can you withdraw?
Most eligible members can withdraw nearly everything in their KiwiSaver account. This includes:
- Your own contributions
- Your employer's contributions
- Government contributions (member tax credits)
- Any investment returns your savings have earned.
You'll need to leave at least $1,000 in your account to keep your KiwiSaver membership open. If you've transferred savings in from an Australian complying superannuation scheme, these generally can't be included in a first-home withdrawal.
What properties qualify?
The property needs to be in New Zealand, and you must intend to live in it as your main home. This covers new builds and land you're buying to build on, including some homes on Māori land, subject to extra conditions. Holiday homes, rentals, and other investment properties don't qualify.
How to apply for a KiwiSaver first-home withdrawal
The application process is fairly similar across most KiwiSaver providers, though check your provider's form and requirements. Here's a general step-by-step guide:
- Clarify your eligibility. Confirm you meet the three-year membership rule, and that the property and your plans to live in it qualify.
- Contact your adviser or provider early. Ask for an estimate of how much you could withdraw, so you know your budget before you start house hunting. A Policywise adviser can also help you check whether your current KiwiSaver fund still suits your home-buying goal.
- Prepare your documents. You'll usually need your sale and purchase agreement, ID, and a signed statutory declaration witnessed by a lawyer or Justice of the Peace.
- Work with your solicitor. Your solicitor or conveyancer will complete an agreement and undertaking so your KiwiSaver funds can be paid into their trust account ahead of settlement.
- Submit your application. Send your completed form and supporting documents to your provider well ahead of your settlement date.
Most providers ask for your paperwork at least 10 working days before settlement, so don't leave your application until the last minute—missing this window could delay settlement or leave you short of funds on the day.
For more on early withdrawals in general, see our KiwiSaver withdrawal guide.
Fast-track and protect your first-home goal
Review whether your KiwiSaver fund matches your home-buying timeline
Your KiwiSaver fund's investment mix should reflect how soon you plan to buy. Buying within the next one to three years usually calls for a more conservative approach than buying in eight to ten years.
- Staying in an aggressive, growth-focused fund close to your purchase date could expose your deposit to market downturns just when you need the money.
- Being too conservative too early, on the other hand, could limit how much your savings grow over the long term.
There's no single best answer, since the right fund depends on your timeframe, goals, and comfort with risk.
A Policywise adviser can compare multiple leading KiwiSaver providers and funds side by side, and recommend one that matches your home-buying timeline and budget. This service is free, because the provider pays us, not you.
Increase your KiwiSaver contributions to save faster
The more you contribute, the larger your deposit and the sooner you could be off the rental market. A few ways to boost your savings:
- Increase your contribution rate. Most employees contribute 3%, but you can choose 4%, 6%, 8%, or 10% of your before-tax pay
- Make the most of your employer's contribution, generally a minimum of 3.5% of your pay if you're contributing through your job
- Check you're getting the full annual government contribution, worth up to $260.72, when contributing at least $1,042.86
- Consider voluntary lump-sum contributions if you receive a bonus, tax refund, or other windfall.
Even small increases can add up meaningfully by the time you're ready to buy.
Protect your ability to keep saving for your home
Many first-home buyers focus on growing their deposit, but it's just as important to think about what could interrupt your savings.
Serious illness, injury, disability, redundancy, or the death of a partner or income earner can all reduce or stop your regular KiwiSaver contributions, making it harder to reach your deposit goal or keep up mortgage repayments once you own a home.
The right insurance cover can help. Depending on your situation, this might include:
You don't need every type of insurance; you need the right protection. Policywise can help you work out what's genuinely useful for your circumstances, so you don't pay for cover you don't need.
As health, life, and income protection specialists, we can help you build both your KiwiSaver strategy and your insurance plan, with ongoing reviews as your life changes.
Look beyond today's home purchase
Buying your first home is a big milestone, but it's usually just the beginning. Once you own a home, your financial priorities tend to shift towards paying off your mortgage, protecting your family's lifestyle, reviewing your KiwiSaver for retirement, and adjusting your insurance as your mortgage balance decreases.
Many Policywise clients continue working with us long after their first-home purchase. We offer ongoing KiwiSaver reviews alongside insurance advice, as your mortgage, income, and family circumstances evolve.
If you'd like to understand more about protecting your home loan, see our guide on life insurance for home loans, or read more about insurance to consider when buying a house. When you're ready to think further ahead, our retirement planning guide can help, too.
Why choose Policywise as your KiwiSaver adviser
Policywise makes it easy for you to grow and protect your retirement funds. We provide independent KiwiSaver advice and help you choose funds that maximise your returns and match your long-term goals.
We also make sure you’re set up with the right insurance cover, so your retirement plans don’t fall apart even if critical illness, injury, disability, or death impacts your personal or family income.
Check out the reviews on our homepage for how other New Zealanders have found our service, because now is the time to get your retirement and insurance plans sorted. Give your family or someone you love the most outstanding financial support possible. Book a 5-minute callback with Policywise today; our service is fast and free.
