Using Kiwi Saver to purchase a property
Knowing how to use Kiwi Saver to buy your first home can be a bit confusing and new rules are coming into effect on the 1st of April, however these have not yet been officially released.
In the meantime, Mark Greene from Mike Pero Mortgages has summed up what you can do with Kiwi Saver in the Auckland market.
“You can currently use your Kiwi Saver on a first home purchase in the Auckland area where the purchase price is no more than $485,000, and the property has its own ground floor entrance and is larger than 60sqm. You can not use Kiwi Saver for an Apartment. You must have been in Kiwi Saver for 3 years, consistently paying into it, and can draw out your contributions and employer contributions.
To get a First Home Subsidy, it must be your first home, be under $485,000 and there are income rules as well, so check with your provider. You must also have been paying into the scheme for a minimum of 3 years. You get $3,000 for 3 years, $4,000 for 4 years, and $5,000 for 5 years. These rules will also change on the 1st April but are not yet official.”
Conditions do apply so please check with your Kiwi Saver provider to confirm how much you can withdraw.
Mark Greene is an Advisor/Franchise owner of Mike Pero Mortgages – Click here to visit Mark’s Facebook Page.