Previous Home Owner wanting to withdraw Kiwisaver
December 04, 2023 at 9:00 AM
There are many reasons why you are a previous home owner and want to buy your next home.
The one reason we see the most is where a couple has split and from the sale of their previous home he/ she does not quite have enough deposit to purchase their next home.
Just like a first-home buyer, you will still need to apply through your scheme provider. This is whoever manages your KiwiSaver fund.
Kāinga Ora will first need to assess whether you qualify. If you meet their criteria then Kāinga Ora will send you a letter which you will then forward to your KiwiSaver scheme provider, to assist with your application to withdraw your KiwiSaver contributions.
Here are some of the criteria to meet:
- You have not previously withdrawn your KiwiSaver funds to buy a home
- You have been a member of KiwiSaver for at least three years
- You have previously owned property, but no longer own any interest/share in property (this does not include ownership of Māori land)
- You do not have realisable assets totalling more than 20% of the house price cap for an existing/older property in the area that you are looking to buy in. So in Invercargill City its $400,000 which means you cannot exceed $80,000. Kāinga Ora considers the following to be realisable assets:
- Money in bank accounts (including fixed and term deposits)
- Shares, stocks and bonds
- Investments in banks or financial institutions
- Building society shares
- Any money paid to, or held by, the real estate agent or solicitor as a deposit on the property
- A boat or caravan (if the value is over $5,000)
- Additional vehicles (such as classic motorbikes or cars – not being used as your usual method of transport)
- Other individual assets valued over $5,000
Just like a first-home buyer wanting to withdraw their KiwiSaver, if you currently own a home, land or have a share in a property, you will not be eligible (this does not include ownership of Māori land).
If you meet all the criteria above, contact us and we can take care of the home loan for you. There are a number of banks at our disposal to find the best home loan option for you - whether you are a low deposit borrower with less than 20% deposit or you have more.
Link to Apply: https://hera.power-business.co.nz/kaingaora/First_Home.nsf