Saving towards a deposit and sorting out your mortgage are important first steps on your property journey.
Things can move quickly when buying a house, so it’s a good idea to have a pre-approved home loan before you start looking. Knowing how much you can borrow will help you search for properties in your price range.
To be eligible to withdraw some or all of your KiwiSaver you must:
You can now withdraw funds from your KiwiSaver to put towards your initial deposit (previously this was only possible upon going unconditional). If you have a conditional sale and purchase agreement you can choose to make your withdrawal at the point of deposit or when you settle.
Contact your KiwiSaver provider regarding any entitlement before beginning the purchase process if you are purchasing a home for the first time.
If you are a previous home owner, you will still need to apply through your scheme provider; however Kāinga Ora will initially need to determine whether you are a qualifying person. If you are deemed to be in the same financial position as a first home buyer, the letter produced by Kāinga Ora will need to be forwarded to your KiwiSaver scheme provider, to assist with your application to withdraw your KiwiSaver contributions.
Find out more here - https://kaingaora.govt.nz/home-ownership/kiwisaver-first-home-withdrawal/
You can apply for the grant through Kāinga Ora - Homes and Communities.
Find out more here - https://kaingaora.govt.nz/
To be eligible for the First Home Grant you must be:
In the 12 months before you apply, you must have earned:
You must have been regularly contributing at least the minimum amount to KiwiSaver for 3 years.
You must provide evidence that you have a deposit of at least 5% of the purchase price of the house you want to buy or build.
This can include money:
If using gifted money, you'll need to supply a completed declaration.
Regional House Caps:
House price caps have been increased across large parts of the country – bringing them in line with regional lower quartile house prices, after a period of bumper price growth across New Zealand’s housing market.
In Auckland, the new cap now sits at $875,000 for both existing properties and new builds, up from $625,000 and $700,000 respectively. Christchurch is now at $750,000 for a new build. And across other major centres, the new price caps are as follows:
The property purchase price must be within the regional house price caps.
You must agree to live in your home for at least 6 months from:
You must not currently own any land or property. This includes a property owned by a spouse or de facto partner that you could reasonably be expected to live in or sell. It does not include ownership of Māori land.
If you are buying a property with other people, you must be buying an equal share.
If you buy privately (not through a real estate agent), you may need to provide evidence that you have paid a fair market price, for example a registered valuation.
How it Works
You can apply for either:
If you buy a new home or land
If you buy a new home or land to build on, you can get $2,000 for each of the 3 (or more) years you've paid into the scheme. The most you can get is $10,000 for 5 or more years.
To find out more including eligibility and property criteria, as well as income and deposit visit - https://kaingaora.govt.nz/home-ownership/first-home-grant/check-you-are-eligible-for-first-home-grant/
As well as having a 5% deposit, you need to meet certain criteria including an income cap. You will also need to meet the specific lending criteria of the participating lender you choose.
The criteria are listed below along with an easy guide to check at a glance if you are eligible to apply: -
Previously, to be eligible, you had to (among other things) be looking at buying a house valued at less than those regional house prices caps we mentioned earlier.
But, as of Wednesday 1st June, those caps will no longer apply, significantly increasing choice for eligible first home buyers.
Minimum deposit - You will need a minimum 5% of the purchase price of the house you are wishing to buy.
First home buyer - Or a previous home owner, in a similar financial position to a typical first home buyer.
To find out more including eligibility and property criteria, as well as income and deposit visit - https://kaingaora.govt.nz/home-ownership/first-home-loan/check-you-are-eligible-for-first-home-loan/