Richard Williams/Jo Reweti

The goal of owning your own home may be closer than you think…You may be eligible to access one or all of three government home ownership products designed to help people on low or fixed incomes into their own homes. 

The three products are:

• KiwiSaver HomeStart Grant
• KiwiSaver First-Home Withdrawal
• Welcome Home Loans

KiwiSaver Homestart Grant
If you have been regularly contributing to KiwiSaver for three or more years, you may be entitled to a HomeStart grant of up to $5,000 to purchase an existing/older home or up to $10,000 towards building or purchasing a brand new home.

Two or more borrowers can combine their grants to help buy a home.  For example, a couple who have both contributed to KiwiSaver for five years could be eligible for grants totalling $10,000 or $20,000.

KiwiSaver First-Home Withdrawal
If you have been a member of KiwiSaver for at least three years, you may be able to withdraw your savings to put towards buying your first home.  You can withdraw all your funds except the $1,000 Government contribution.

Welcome Home Loans
A Welcome Home Loan only requires you to have a deposit of 10% of the purchase price (rather than the usual 20%).  These loans are offered by selected banks and credit unions including TSB, Kiwibank, Westpac, New Zealand Home Loans, NZCU and The Cooperative Bank. 

They are designed for first home buyers who have trouble saving for a larger deposit but can afford to make regular repayments on a home loan.  Your 10% deposit can be made up of a KiwiSaver HomeStart Grant, KiwiSaver First-Home Withdrawal funds and/or money gifted to you.

Eligibility
To be eligible for the above products you must:

• Be 18 or over.
• If you are buying on your own, earn less than $85,000 (before tax) a year.
• If you are buying with someone else, earn less than $130,000 (before tax) a year between you.
• If you are in Taranaki, buy an existing/older property up to $400,000 or buy a new property (such as off the plan purchases, house and land packages, the purchase of land on which a new property will be built or a newly built property where the code compliance certificate has been issued within the last six months) valued up to $450,000.
• Live in the property for at least six months from the settlement date.
• Not own (nor – except in limited circumstances* - have previously owned) any other houses.

*If you are a previous home owner and you are in the same financial position as a first-home buyer (perhaps through a matrimonial separation), you may be eligible for the grant and/or first-home withdrawal.

Get in touch if you would like help with your KiwiSaver applications.

Richard Williams/Jo Reweti