Most New Zealand first-home buyers use KiwiSaver to buy their first home. And, no wonder – it’s a great way to kick-start your home-ownership goals. The First Home Grant and First Home Loan are designed to give even more assistance to first-home buyers. With these options at your fingertips, you’ll be buying a property before you know it!
KiwiSaver first-home withdrawal
If you qualify, you may be able to withdraw some of your KiwiSaver savings, including your member contributions, employer contributions, interest and tax credits, to help you buy your first home. Here’s what you need to know:
You can apply to your KiwiSaver provider to make a first-home withdrawal, but be aware that not all KiwiSaver providers allow these types of withdrawals.
First Home Grant
With a First Home Grant, first-home buyers may receive up to $5,000 (or $10,000 if there are two or more eligible buyers) to help purchase a home. For a brand-new home, you may receive even more – up to $10,000 (or $20,000 for two or more eligible buyers). The amount of the grant depends on how long you have been a KiwiSaver member and there are caps on your income and the value of the home you can purchase:
You must be purchasing the home to live in and, generally, only first-home buyers are eligible, but there are sometimes exceptions.
First Home Loan
First Home Loans are special loans available from some banks. They’re underwritten by Housing New Zealand, which means they don’t have to follow the usual restrictions – and that means you’ll only need a 5% deposit at the current time. They’re not available from all banks, though, so talk to your mortgage adviser if you’re hoping to apply for one. As with the First Home Grant, there are caps on your income and the value of the home you can purchase:
You must be purchasing the home to live in, not as an investment property, and you must not own any other property. These loans are only available to first-home buyers OR those who have previously owned a home but are in a similar financial position to a first-home buyer.
Contact the Loan Market Paramount team today to find out whether any of these options could be just what you need to get into your first home faster!