The dream of owning your own home might feel more challenging now, especially with the recent changes to New Zealand's housing policies. With the First Home Grant being discontinued and KiwiBuild scrapped, the landscape for first-time buyers has shifted. But don’t worry, there are still ways to make your homeownership dreams a reality!
KiwiSaver remains a fantastic tool for getting onto the property ladder. Even without the First Home Grant, you can still use your KiwiSaver savings to boost your budget when buying your first home. This includes your contributions, your employer’s contributions, and any government contributions (minus the $1,000 kickstart if you received it).
Before you start planning, let’s make sure you’re eligible:
Membership Duration: You need to have been a KiwiSaver member for at least three years.
First-Home Buyer: If this is your first time buying a home, you’re eligible to use your KiwiSaver. If you’ve previously owned a property but no longer do, you might still qualify under the "second chance" provision. However, this depends on factors like your current financial situation and whether you have assets that could be used to buy a home. It’s best to check with Kāinga Ora or your KiwiSaver provider to see if you qualify.
Primary Residence: The property you’re buying needs to be your future home, not an investment property.
Here’s how you can tap into your KiwiSaver:
Check Your Eligibility: Get in touch with your KiwiSaver provider to ensure you’re good to go.
Find Your Dream Home: Secure a property and sign that all-important sale and purchase agreement.
Apply for Withdrawal: Reach out to your provider to start the process. Remember, processing times can vary, so it’s a good idea to get this rolling early. Once the forms have been filled out you then must sign with your lawyer. They will then send off to your kiwisaver provider to withdraw the funds on your behalf.
Things to Keep in Mind
While KiwiSaver is a great help, don’t forget that withdrawing from it will reduce your retirement savings. It’s a good idea to have a plan for how you’ll rebuild those savings after you’ve settled into your new home.
And, as always, legal advice is worth its weight in gold when navigating the home-buying process—especially with these new changes.
Even with these shifts in policy, your dream of owning a home is still within reach. If you’re feeling unsure about how these changes affect you, I’m here to help. Let’s chat about your options and get you on the path to homeownership.
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