The First Home Buyer's Complete Guide to KiwiSaver

If you’ve been working and contributing for three or more years, there’s a good chance you can access almost all of your KiwiSaver balance to put toward your first home.

The rules around eligibility, what you can actually withdraw, which fund type to be in as you approach purchase and the step-by-step application process aren’t complicated, but they need to be understood in the right order.

This guide covers how much you can withdraw, whether you qualify, what happened to the First Home Grant and the one fund-type decision most first home buyers miss until it’s almost too late.

Key takeaways:

• After three years of KiwiSaver membership, you can withdraw almost your entire balance, leaving just $1,000
• Your withdrawal includes your own contributions, employer and government contributions, plus investment returns
• The property must be in New Zealand and must be where you’ll live
• The First Home Grant was discontinued in May 2024, but the First Home Loan from Kāinga Ora is still available
• As you get closer to buying, consider switching to a lower-risk fund to protect your deposit from market swings.

How the KiwiSaver First Home Withdrawal Works

A KiwiSaver first home withdrawal is a one-time option that lets eligible members access most of their KiwiSaver money to put toward the purchase of their first home in New Zealand.

According to Inland Revenue (IRD), you need to:

• Have been in KiwiSaver for at least three years (the clock starts from when you first joined the scheme, not from your current job)
• Be a first-time home buyer (if you’ve previously owned property but no longer do, you might still qualify, but you’ll need Kāinga Ora to decide that)
• Be purchasing property in New Zealand and planning to live in it as your main home. You can’t use the withdrawal to buy an investment property.

If you’re a first-time buyer who meets all three of these criteria, you apply directly through your KiwiSaver provider. There’s no need to go through Kāinga Ora. The process typically takes a few weeks, so we recommend starting your application well ahead of your settlement date.

New to KiwiSaver in general? Our How Does KiwiSaver Work? guide covers the basics.

How Much Can You Withdraw?

You can withdraw everything in your KiwiSaver account except for $1,000, which has to stay behind.

According to Kāinga Ora, your withdrawal can include:

• Your own contributions
• Your employer’s contributions
• The government contribution (sometimes called the member tax credit)
• Investment returns your balance has accumulated
• Any fee subsidies you received.

The one exception is if you’ve ever transferred Australian superannuation savings into your KiwiSaver. That portion can’t be withdrawn for a first home, as it’s governed by a separate Trans-Tasman agreement. Inland Revenue has more on how the transfer works.

Here’s a rough example of what your withdrawal situation can look like in practice:

Employer contributions are subject to ESCT (Employer Superannuation Contribution Tax), which means the amount credited to your KiwiSaver account will be slightly lower than the gross figure shown. The ESCT rate depends on your income.

Your actual balance will also include investment returns, which vary depending on your fund type. For someone in a growth fund during a period of positive market performance, the total can be meaningfully higher than the contribution sum alone.

For context on how contribution rates changed in April 2026, read KiwiSaver Contribution Rates: What Changed in April 2026.

Which Fund Type Should You Be In?

Which fund type you should be in is a question that most first home buyers ask themselves too late or not at all.

KiwiSaver fund types range from defensive (low risk with steadier returns) to aggressive (higher risk, higher long-term growth potential). For retirement savings that are decades away, a growth or aggressive fund is generally the right choice. But if you’re planning to buy a home in the next one to three years, the risk profile changes significantly.

If a market downturn hits in the months before your settlement date, a growth fund could lose 15–20% of its value at exactly the wrong time, shrinking the deposit you’ve spent years building. Switching to a conservative or defensive fund in advance gives some stability, keeping your balance intact when you need it most.

Consider temporarily switching to a more conservative fund at least six to 12 months before your planned settlement date. Once you’ve completed the withdrawal and you’re back to saving for retirement, you can switch back to a growth-oriented fund.

If you’re not sure which fund type you’re currently in, your provider can tell you. Our article, BetterSaver compares over 300 KiwiSaver funds, can help you assess whether your current fund suits your timeline.

5 Types of KiwiSaver Funds and What They Mean explains each fund type clearly, including when each one makes sense.

What Happened to the First Home Grant?

The KiwiSaver First Home Grant (a Kāinga Ora top-up of up to $5,000–$10,000 for eligible first home buyers) was discontinued on 22 May 2024. If you’ve been searching for it recently, it’s no longer available.

But the KiwiSaver first home withdrawal is still active, and it’s a completely separate mechanism. The grant was an extra top-up from the government, whereas the withdrawal is access to your own savings (plus contributions from your employer and the government’s annual top-up). Don’t let the grant’s discontinuation put you off using the withdrawal.

If you were counting on the grant to bolster your deposit, the First Home Loan (also administered by Kāinga Ora) is still available. It lets eligible buyers purchase a home with as little as a 5% deposit instead of the standard 20%, subject to income caps.

To be eligible, your before-tax income from the last 12 months must be $95,000 or less if you’re an individual buyer without dependants, $150,000 or less if you’re an individual buyer with one or more dependants or $150,000 or less combined if there are two or more buyers, regardless of dependants. Full eligibility criteria are on Kāinga Ora’s First Home Loan page.

Buying with a Partner: Using Two KiwiSavers

If you’re buying with a partner, both of you can make a first home withdrawal, as long as you each independently meet the eligibility criteria. Both partners need at least three years of KiwiSaver membership, and both need to be buying their first home.

If one partner has previously owned a home, they won’t automatically qualify. Kāinga Ora will need to assess whether their current financial position is comparable to a first home buyer’s. If it is, that person will receive a letter to forward to their KiwiSaver provider to proceed with the withdrawal.

Combining two KiwiSaver balances can make a meaningful difference to your joint deposit (in many cases, it represents the difference between reaching a bank’s lending threshold or not). Both partners should definitely check their eligibility and balances early.

The Timeline: When to Act and in What Order

Getting the timing right is more important than most people realise. Rushing the application in the final weeks before settlement is one of the most common mistakes first home buyers make.

The application is handled by your KiwiSaver provider. Most process withdrawals within a few weeks, but timelines vary. The funds go directly to your solicitor, not to you, and are applied to settlement. Your solicitor manages the rest.

Frequently Asked Questions

Can I Use My KiwiSaver to Buy a First Home If I’ve Owned Property Before?

Possibly. If you’ve previously owned property but no longer do, you may still qualify as a “previous home owner” through Kāinga Ora’s eligibility process.

Kāinga Ora will assess whether your current financial position is similar to a first home buyer’s (for example, that you don’t have significant realisable assets above the regional cap).

If they determine you qualify, they’ll issue a letter that you forward to your KiwiSaver provider.

Does the $1,000 Left Behind Come Back to Me?

Yes. The $1,000 stays in your KiwiSaver account and keeps growing. It’s a minimum balance requirement, not a permanent deduction.

Once you’re back to saving for retirement, your ongoing contributions are added on top of it.

How Long Does the Withdrawal Process Take?

Most KiwiSaver providers process first home withdrawals within a few weeks. The funds go directly to your solicitor’s trust account on or before settlement day (they don’t come through you).

Allow enough time by starting the application as soon as you have a signed Sale and Purchase Agreement.

Can My Partner and I Both Withdraw Our KiwiSaver?

Yes, as long as you both independently meet the eligibility criteria (three years of membership, buying your first home and intending to live there).

Each withdrawal is assessed on the individual’s own eligibility, and the balances are withdrawn separately.

Does the Government Contribution Get Withdrawn Too?

Yes. The government contribution (up to $260.72 per year) is included in what you can withdraw. IRD confirms that the government contribution can be withdrawn alongside your own and your employer’s contributions. You don’t have to leave it behind.

The Most Important Steps

If you’ve been in KiwiSaver for three or more years, the first home withdrawal is one of the most practical tools available to you as a first home buyer in New Zealand. It includes your contributions, your employer’s, the government’s annual top-up and your investment returns. This often ends up being a larger sum than people expect.

The steps that matter the most are:

• Checking your eligibility early
• Reviewing your fund type well before settlement,
• Giving your withdrawal application enough lead time.

If you’re buying with a partner, run the eligibility check for both of you.

Not sure whether your current KiwiSaver fund is the right fit for where you’re at? Take BetterSaver’s free fund finder quiz, which compares over 300 KiwiSaver funds and gives you a personalised recommendation in around five minutes.