Kiwisaver First Home Grant eligibility for first-time homebuyers in New Zealand (2024)

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The Kiwisaver pension is not available until you reach age 65, but there are a few exceptions. If you're buying your first home in New Zealand, you may also be eligible for the Kiwisaver First Home Grant, which is a government-funded grant that you can get if you meet the conditions, how much it's worth, and more.

Kiwisaver First Home Grant for first-time home buyers

kiwisaver first home grant

If collecting a pension at age 65 or older hasn't been a priority for you, the average person is most likely to have a New Zealand Kiwisaversis probably when you're shopping for your first home.

In New Zealand, the government offers a certain amount of money to help you buy your first home if you qualify, called the Kiwisaver First Home Grant. To qualify for that funding, you'll need to


Kiwisaver First Home Grant conditions

To be eligible for the Kiwisaver First Home Grant, you must have been a member of Kiwisaver New Zealand for at least three years and have been paying into it for at least three years. And because it's subsidized by the government, it's not for people who can afford to buy a very expensive home.

The conditions are listed below, and we'll explain the specifics of each condition slowly below.

  • 18 years of age or older
  • The money you made in the last 12 months must not exceed the government's income guidelines
  • Your current spouse or common-law partner must not have ever owned real estate, including land
  • You've been a Kiwisaver member for at least 3 years and contributed the minimum amount (gross income of 3% or $1,000 or more)
  • Purchasing a home that exceeds the home price set by the New Zealand region is not supported
  • Must have lived in the unconditionally purchased home for at least 6 months


Government-determined income thresholds (last 12 months)

  • Individual buyer (single): pre-tax income NZD $95,000 or less
  • Individual buyer (with children or dependents): pre-tax income NZD $150,000 or less
  • 2 or more joint purchasers (can have dependents): pre-tax income NZD $150,000 or less

If your dependents are over the age of 18, you may be asked to provide specific proof of their support.


Minimum amount that must be in Kiwisaver

You must save at least 3% or $1,000 of your gross income each year, whichever is less, and you must save for at least three years to be eligible for the Kiwisaver first home grant, and these three years do not have to be consecutive.

If you're self-employed, you can qualify by making one annual contribution of the lesser of 31 TP3T or 1 TP4T1,000 of your gross income, and if you're not employed, you can qualify by making a voluntary contribution of 1 TP4T1,000 each year.


House price caps by region in New Zealand

The Kiwisaver First Home grant is available for the purchase of new and existing homes that don't exceed the house price cap for the area where the home you want to buy is located.

[New homes talked about by First Home Grant].

  • Newly constructed homes that have received a building code compliance certificate within the 12 months prior to the First Home grant application date.
  • Vacant land to build on
  • House and land package or apartment purchased under a plan


[Existing homes that First Home Grant is talking about].

An existing home is any home that has received a Certificate of Construction Code Compliance (CCC) more than 12 months prior to applying for a First Home grant. A building code compliance certificate is the Korean equivalent of an occupancy permit or occupancy inspection.


[First Home Grant Home Price Cap (effective May 15, 2023)]

The New Zealand-specific home price cap set by the Kiwisaver First Home Grant. For example, in Auckland City, the cap for new and existing homes is NZD $875,000.

This means that the Kiwisaver First Home Grant is not available for people looking to buy a home above this price point.

Realistically, with the average house price in New Zealand being over $1M, it's unlikely that you'll find a house in the above price range in Auckland, the country's largest city, and Queenstown, its main tourist city - perhaps an apartment or townhouse.

However, in other neighborhoods, it doesn't seem to be too hard to find a home in a price range you can support, unless it's in a completely central location.

Anyway, if you're curious about the Kiwisaver First Home Grant house price caps for each region of New Zealand, here's the file below.

First-Home-Grant-price-cap-table-26-April-2023Download

If you meet the above conditions and want to withdraw money from KiwiSaver, please check the page below and follow the steps as instructed.

Learn how to withdraw your accumulated Kiwi Saver money


Deposit to apply for a Kiwisaver first home grant

To apply for a Kiwisaver First Home grant, you must have a minimum deposit, which is at least 51 TP3T of the price of the home you want to buy.

At this time, the funds recognized by the First Home grant for homes priced at or above $5% include

  • Money in Kiwi Saver (withdrawal)
  • Money in the bank
  • Money you've already paid for the property
  • First Home grant pre-approval amount
  • Money gifted by a close family member (requires documentation)


Kiwisaver First Home grant amount

The amount of government assistance for people who meet all the criteria varies slightly between new and existing homes.

[for new home purchases].

  • Kiwisaver subscription for 3 years: $6,000
  • Kiwisaver for 4 years: $8,000
  • Kiwisaver subscription for 5 years: $10,000


[when buying an existing home].

  • Kiwisaver subscription for 3 years: $3,000
  • Kiwisaver for 4 years: $4,000
  • Kiwisaver for 5 years: $5,000

If two people who have been Kiwisavers for 5 years want to buy their first home together and meet all the conditions, they can get $10,000 each for a total of $20,000 (about $16,000).


Existing homeowners can apply for the Kiwisaver First Home Grant once

As someone who has never owned a home, I thought that only people buying their first home in New Zealand were eligible for the First Home Grant. However, existing homeowners can apply for this once in a while. However, you must meet the following conditions

  • Meet all of the above basic conditions
  • Never received a First Home Grant or Kiwisaver Homestart Grant or Kiwisaver Deposit Subsidy
  • You can't own more than 201 TP3T of property in the area you want to buy.

Assets include deposits in banks, savings, and stocks, bonds, money invested in institutions, and boats, caravans, and other assets worth more than $ 5,000. However, it doesn't include money in a Kiwisaver.

For reference, if you are interested in learning more about the Kiwisaver First Home Grant and its specific terms and conditions, please refer to the Kainga Ora website below.

Learn More First Home Grant (Kainga Ora)


However, we have some unfortunate news. This great First Home Grant program is currently suspended at the request of the government. It is currently only open for applications made before 1pm on May 22, 2024. No one knows yet when it will reopen.

We're not sure what caused the interruption, but we're hoping to hear that applications are back up and running soon. We'll update you again with any news.


Finalize

Today, we've covered the Kiwisavers available for first-time homebuyers in New Zealand, as well as the eligibility and amount of the government's First Home Grant.

Personally, I think it's a shame that the program is currently on hiatus, and while the maximum amount of government assistance may be small in the context of overall house prices, it would be great to have it available.

However, we hope this was helpful for anyone who wanted to learn more about the First Home Grant program. Thank you for reading this article.

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