When it comes to buying first home, there are many things that one needs to pay attention to. Today, we are going to talk about one such thing – KiwiSaver. KiwiSaver can provide a fast-tack to homeownership for the qualifying members in New Zealand. Today, in this short guide we are going to take you through the KiwiSaver withdrawal rules , process and more.    

So, let’s see what we are going to cover in this short yet elaborate guide:   

• What are you entitled to under KiwiSaver? ( KiwiSaver Withdrawal Rules )   
• How to apply & receive your KiwiSaver money?   
• How much can you withdraw from KiwiSaver Savings?   
• Frequently asked questions about KiwiSaver Savings & Withdrawals   

Let’s begin...   

What are you entitled to under KiwiSaver? ( KiwiSaver Withdrawal Rules )   

If you are continuously contributing to the KiwiSaver account for at least last three years, you become eligible to withdraw your KiwiSaver balance to buy first-home.    

KiwiSaver Withdrawal Rules (Eligibility)    

Apart from contributing to KiwiSaver for at least 3 years, there are several other KiwiSaver withdrawal rules that set your eligibility. Some of these rules are -    

• You must not own a home or land before in New Zealand or even overseas.    

Note: Previous homeowners may still be eligible. The eligibility for KiwiSaver withdrawal is determined by Kaianga Ora for previois home owners. You can check more details for the same at https://kaingaora.govt.nz/   

• You must apply for KiwiSaver while buying a home or land in New Zealand.    
• It is also a rule that you can make a KiwiSaver withdrawal for the home you intend to live in or buy a land using the KiwiSaver money and not construction of a home.    
• To be able to make KiwiSaver withdrawal , it is essential that you have not made any withdrawals before.    

How to apply for KiwiSaver Withdrawal? The Process to Follow!   

The who process to apply for KiwiSaver withdrawal can become more streamlined if you are well-organized when it comes to documentation and all. Once you have organized all your documents, you can follow the below mentioned steps with ease.   

Step 1: Collect and Organize all the supporting documents   

Before you start the process of filling KiwiSaver withdrawal form , you need to have the following documents handy:   

• Certified ID and proof of address   
• A bank deposit slip for your solicitor’s trust account   
• A copy of the sale and purchase agreement for the property (home or land) you are buying. You must also have a letter of undertaking – conditional agreement or unconditional agreement if you are using KiwiSaver savings to pay part of the purchase price at settlement.      
   

Step 2: Apply & Submit your Documents   

After you have all these documents ready for you, the next step is to complete the KiwiSaver withdrawal form from your provider. This form usually contains an original statutory declaration.    

Once you have successfully filled the KiwiSaver withdrawal form , you can send the form along with all the documents mentioned in step 1 above.    

After completing step 1 and 2, your application is then assessed and after approval, the money is paid into your solicitor's trust account.    

Note: We highly recommend you call or email them to make sure that your form is received and processing if you don’t hear back from them within 3 working days.   

How much can you withdraw from KiwiSaver Savings?   

You can apply to withdraw all your KiwiSaver savings for the purchase of your first-home or land except for:   

• $1,000   
• Any amount that you may have transferred from an Australian complying superannuation scheme (only if applicable)   
• Any government contributions that may be received during the period you loved overseas and did not have any permanent residence in New Zealand.    

Frequently Asked Questions About KiwiSaver Savings & Withdrawals   

Below, we have accumulated a few frequently asked questions about KiwiSaver Savings and withdrawals.    

Q1: In what situation can you apply for KiwiSaver withdrawal?   

You are eligible to apply for KiwiSaver withdrawal if you wish to buy your first-home or land. For more details about eligibility, please refer to the KiwiSaver Withdrawal Rules (Eligibility) section above.    

Q2: Can KiwiSaver be used to pay off debt?   

KiwiSaver funds are not for repaying the debt like credit cards, fines, or infringement notices. These savings are designed for only two situations – buying your first home or land and growing a nest eff for retirement.    

Q3: Are KiwiSaver withdrawals taxed?   

No, when it comes to KiwiSaver funds, the money is tax-free. To understand it better, you must understand that the KiwiSaver contributions are made from your income that is already taxed and the gains from your investments that you on in KiwiSaver are also taxed. To withdraw your KiwiSaver funds , you can contact your provider directly.