KiwiSaver is one of the most powerful tools first home buyers in New Zealand have. After three years of membership you can withdraw nearly your entire balance for the deposit on your first home — your contributions, your employer's match, the government top-up and all investment returns.
How the KiwiSaver first home withdrawal works
Once you've been a KiwiSaver member for at least three years, you become eligible to withdraw your balance for the purchase of your first home. The rules are straightforward:
- Minimum balance retained: $1,000 must stay in your KiwiSaver account
- Eligible properties: must be in New Zealand and intended as your main home for at least six months after settlement
- Application route: through your KiwiSaver provider, with funds paid directly to your solicitor at settlement
The withdrawal includes everything in your account: your own contributions, employer contributions, member tax credits (the government's $521 annual top-up), and all investment returns. You don't withdraw "your contributions only" — you withdraw the lot, less the $1,000 minimum.
How much will you have?
The two biggest drivers of your KiwiSaver balance at the time of your first home purchase are:
- Your contribution rate — 3%, 4%, 6%, 8% or 10% of gross pay. The higher your rate, the bigger your balance and the more employer contribution flows in (employer must match the first 3%).
- Years until purchase — every additional year of membership adds your contributions, employer contributions, member tax credits and compound returns.
The calculator above projects your balance from today to your planned purchase date using a moderate-fund return assumption. You can adjust the assumption if you're in a growth or conservative fund.
The $521 government contribution
Every KiwiSaver member who contributes at least $1,042.86 of their own money between 1 July and 30 June qualifies for the government's $521.43 member tax credit — a 50% match. Roughly $20 a week of your own contributions clears the threshold. If you're under-contributing (e.g. you've taken a savings break or your income is low), you may be leaving the full match on the table.
Should you switch fund types before buying?
If your home purchase is within 1–3 years, many advisers recommend moving to a conservative or defensive fund. The argument: growth funds can drop 20–40% in a bad year, and you don't want that hit landing six months before you need the cash. Short-horizon savings should be in low-volatility assets.
If your home purchase is 5+ years away, growth funds typically outperform over the long run. The volatility doesn't matter as much because you have time to ride it out.
If you're not sure, the Sorted Fund Finder is a free tool from the NZ Government Retirement Commission that helps you choose. Fund switches within KiwiSaver are free and don't trigger tax.
What KiwiSaver doesn't cover
KiwiSaver gets you to the deposit. It does not cover:
- Stamp duty equivalent — NZ has no stamp duty (unlike Australia)
- LIM report — typically $200–$400
- Building inspection — $400–$800
- Lawyer / conveyancer fees — $1,500–$3,000
- Bank application or valuation fees — sometimes waived as part of a broker package
These should be budgeted from regular savings, not your KiwiSaver. Run the NZ Property Purchase Costs Calculator for a full breakdown.
Combining KiwiSaver with First Home Loan
If your KiwiSaver alone doesn't get you to a 20% deposit, the First Home Loan scheme (formerly Welcome Home Loan) administered through Kāinga Ora and participating lenders allows you to buy with as little as 5% deposit. KiwiSaver can fund that 5%. Eligibility is income-tested and price-capped — check current thresholds with Kāinga Ora.
For first home buyers who've maxed contributions and have 3+ years of KiwiSaver, this combination is the most common route to the first home in NZ.
Frequently asked questions
How much of my KiwiSaver can I withdraw for a first home?
You can withdraw your entire KiwiSaver balance for a first home, except for $1,000 which must remain in the account. This includes your contributions, your employer's contributions, government contributions (member tax credits), and any investment returns. The full amount goes to settlement and is paid directly to your solicitor.
Who is eligible for a KiwiSaver first home withdrawal?
You must have been a KiwiSaver member for at least 3 years, intend to live in the property as your main home for at least 6 months, and be buying your first home (or a home if you're in a similar financial position to a first home buyer, as assessed by Kāinga Ora). The property must be in New Zealand.
Can I get the First Home Grant on top of my KiwiSaver withdrawal?
The First Home Grant scheme administered by Kāinga Ora was discontinued from 22 May 2024. KiwiSaver first home withdrawal still applies, and KiwiSaver itself remains a major source of deposit funds for first home buyers. Check the Kāinga Ora website for the most current schemes that may have replaced or supplemented the grant.
How much does my employer contribute?
Employers must contribute at least 3% of your gross pay to your KiwiSaver, on top of your own contribution. Some employers contribute more as part of their package. Employer contributions are taxed at your Employer Superannuation Contribution Tax (ESCT) rate before they hit your account, so the net amount in your account is slightly less than 3% of your gross pay.
What's the government contribution?
If you contribute at least $1,042.86 of your own money to KiwiSaver between 1 July and 30 June, the government adds $521.43 — a 50% match up to that cap. To maximise the match, you need to contribute roughly $20 per week from your own funds. This is on top of any employer or default contributions. The contribution shows up in your account around July each year.
What return rate does the calculator assume?
The calculator uses a moderate default return assumption (around 5% p.a. nominal) reflecting a balanced fund. Growth funds may return more over long horizons but with higher volatility; conservative funds return less. You can adjust the rate in the calculator if you want to model different fund types. Past returns aren't guaranteed and short-horizon (1–3 year) projections are particularly sensitive to market conditions.
Should I switch funds before my first home purchase?
If your home purchase is within 1–3 years, many advisers suggest moving to a more conservative fund to reduce the risk that a market downturn drops your balance just before settlement. Growth funds are appropriate for long horizons (10+ years), conservative or defensive funds for short horizons. Speak to a qualified NZ adviser if you're not sure — fund switches inside KiwiSaver are free and don't trigger tax.
Can I use KiwiSaver to buy land?
Yes, you can use a KiwiSaver first home withdrawal to buy land if you intend to build a home on it. The same eligibility rules apply (3-year membership, intention to live there). The withdrawal is paid to your solicitor at settlement of the land purchase, not at the point of construction.
What about Welcome Home Loans / First Home Loans?
First Home Loans (administered by Kāinga Ora through participating lenders) allow you to buy with as little as 5% deposit, where the standard requirement might be 20%. KiwiSaver withdrawal can form part or all of that 5% deposit. Eligibility is income-tested and price-capped — see Kāinga Ora for current thresholds.
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Last updated: 2 May 2026