FIRST HOME BUYERS USING KIWISAVER FOR YOUR DEPOSIT
Buying your first home need not be a difficult process. Here are some guidelines to help you purchase your home using the HomeStart grant and/or KiwiSaver funds towards your deposit.
KiwiSaver has two features to help you buy your first home:
• the KiwiSaver HomeStart grant and
STEP 1: Contact a Mortgage Broker
• Contact a Mortgage Broker to help you with your loan application. The service a Mortgage Broker provides is free, because we get paid by the lender after you purchase your new home. We let you know how much you can borrow and guide you every step of the way, answering any questions you have at any time. Our job is to make applying for a home loan easy and ensure you get the right loan for your circumstances.
STEP 2: Check if you are eligible
KiwiSaver first-home withdrawal
• If you have been a member of KiwiSaver for at least three years.
• You intend to live in the property.
• If you are a member of a complying fund, you may be able to withdraw your savings to help you buy your first home. Not all complying funds permit withdrawals for this purpose, so you will need to discuss this with the trustees of your complying fund.
KiwiSaver HomeStart grant
• Check your eligibility here: http://www.hnzc.co.nz/buying-a-house/KiwiSaver-helping-you-into-home-ownership/kiwisaver-homestart-grant
STEP 3: Apply to your KiwiSaver / complying fund provider and Housing NZ
• Contact your KiwiSaver / complying fund provider and ask them to send you a letter or email confirming how much you can withdraw towards your deposit.
• Housing New Zealand administer the HomeStart grant. Submit an application for the HomeStart grant. The application form can be found at:
STEP 4: Find your new home
• Go shopping for your new home!
• Note – you can find your new home earlier than Step 4 – your Mortgage Broker will guide you through the process if you find a home you love first.
• Send your signed sale and purchase agreement to your Mortgage Broker and your lawyer.
• Meet with your lawyer to complete the application forms for withdrawing KiwiSaver funds.
STEP 5: Get unconditional finance approval
• Your Mortgage Broker will get an unconditional letter of offer from the bank, and forward this to your lawyer. Once any other conditions are met, your purchase will be unconditional.
• Your Mortgage Broker will discuss options with you for structuring your new loan, and help you decide the best repayment options. You will then sign an acceptance of the loan offer.
• Your bank produces loan documents and forwards them to the branch of your choice and your lawyer.
STEP 6: Check loan documents with your lawyer
• Your lawyer is the Professional who liaises with Housing New Zealand and your KiwiSaver provider on your behalf to access deposit funds.
• Meet with your lawyer who will go through your loan documents with you, and then complete the conveyancing (transaction of sale and purchase of property) on settlement day. This will include obtaining your HomeStart grant and/or KiwiSaver funds for your deposit and the draw-down of your new loan.
• Your chosen bank branch will arrange a meeting with you to open new loan accounts and satisfy identification requirements.
STEP 7: Settlement day
• Settlement day is the day you become the new owner of your first home and your new home loan starts. CONGRATULATIONS!
STEP 8: Repaying your home loan
• A good Mortgage Broker will keep in regular contact with you to make sure your loan is always structured to suit your individual needs, and always be contactable to answer any questions you have.
Alternatively – contact Erin Cranfield at Loan Market: - 021 500 299.