Can I use my KiwiSaver to buy my first home?

Yes, if you have been in KiwiSaver for at least three years and you plan to live in the home. You can take out your own contributions, your employer's contributions, the government contribution, the interest you have earned and any fee subsidies. The one thing you cannot empty is the last $1,000, which has to stay in your account.

You do not apply to Inland Revenue or the bank. You apply to your own KiwiSaver provider, and the money is paid to your lawyer, not to you. Getting the timing right with your sale and purchase agreement is where most first home buyers need help.

The basics

• Three years. You must have been a KiwiSaver member for at least three years before you withdraw funds for your first home.
• What you can take. Your contributions, your employer's contributions, the government contribution, interest earned, and fee subsidies if you received any.
• What stays behind. At least $1,000 must remain in your KiwiSaver account. Money transferred in from an Australian complying superannuation scheme cannot be withdrawn either.
• A note on the "kick-start". You may have heard of a $1,000 kick-start. The official pages we checked do not mention it. They talk only about the $1,000 that has to stay in your account. Ask your provider exactly what your balance will allow.
• You must live there. You have to intend to live in the property. It cannot be an investment property.
• Apply to your provider. First home buyers apply through their KiwiSaver (or complying fund) provider, not Kāinga Ora.
• Not every fund allows it. Some complying funds do not allow first home withdrawals, so check with the fund's trustees.
• Previous owners. If you have owned a home or land before, you may still qualify if you are in the same financial position as a first home buyer. Kāinga Ora decides this first, then sends a letter to your provider. You still apply to the provider yourself.
• You cannot own now. Currently owning a home, land or a share in a property rules you out. Māori land is treated differently.

How the timing works

The money is paid to your solicitor on or before settlement day. If you need a deposit earlier, since 1 June 2015 you can withdraw before the agreement is unconditional, but the payment must go to a stakeholder. That is usually the vendor's solicitor, who can only release it in the right circumstances. Your own solicitor has to give your fund manager an undertaking covering this before anything is paid.

• Savings: Aroha has been in KiwiSaver for five years. Her balance is $34,000. That is made up of her contributions, her employer's, government contributions and interest.
• What she can withdraw: $34,000 minus the $1,000 that must stay is $33,000.
• Her partner: He has $21,500, so he can withdraw $20,500 on the same basis.
• Together: $33,000 plus $20,500 is $53,500 towards the deposit and costs.
• Timeline: They sign the sale and purchase agreement with a finance condition. Their lawyer tells the providers the settlement date. Both providers pay the money to the lawyer on or before settlement.

These numbers are only an illustration. Your own balance will differ, and your provider will confirm the exact amount.

First Home Loan and grant changes

• First Home Grant. This has finished. Official government pages say it ended in May 2024. It used to give up to $5,000, or $10,000 for a new build. Do not budget for it.
• First Home Loan. This is still on offer. It lets you buy with a 5% deposit instead of the 20% most lenders ask for. Kāinga Ora underwrites it, and it is offered through participating banks and lenders. You can use KiwiSaver savings for that 5%.
• Income and price caps. We could not confirm the current caps on an official page. Check the current figures at https://kaingaora.govt.nz/home-ownership/first-home-loan/ before you rely on any number you read elsewhere.
• First Home Partner. The shared ownership scheme was full and not taking new applications on the government page we checked, which was last updated in March 2025. Check Kāinga Ora for anything newer.

The catch

• Sale and purchase agreement first. You will want a signed agreement and your lawyer's details before you apply, because the money goes to your lawyer.
• Leave time. Providers have their own processing times. We could not find an official figure, so ask yours early, well before settlement.
• It is your retirement money. Once it is out, it is gone from your KiwiSaver. Taking it also stops it growing and stops further interest on that amount.
• The wrong home does not work. Buying an investment property does not qualify.
• Fund types. Complying funds are not all the same as KiwiSaver schemes. Check yours.
• Official pages disagree in places. One older Tax Technical page says the Crown contribution may not be withdrawn. The current IRD page lists the government contribution as withdrawable. Confirm the total with your provider.

Do this next

1. Check your join date in myIR or your provider's app to confirm three years.
2. Ask your provider for a first home withdrawal form and how much you can take out, leaving $1,000.
3. If you have owned property before, ask Kāinga Ora to assess you first.
4. If you are going for a First Home Loan, talk to a participating lender about the criteria.
5. Give your lawyer the provider's details so they can arrange the payment and any undertaking.
6. Use myIR to create a PDF of your income and KiwiSaver deductions if Kāinga Ora asks for it.
7. Confirm the payment has reached your lawyer before settlement day.

Common questions

Can I withdraw from KiwiSaver after two and a half years?

No. The rule is at least three years in KiwiSaver before you withdraw for a first home.

Do both of us have to be first home buyers?

Each person withdraws from their own account. Check each person's situation with their provider.

Will the money come to my bank account?

No. It is paid to your solicitor on or before settlement day.

Is the First Home Grant still available?

No. It finished in May 2024.

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Last reviewed 2 November 2026. Written by Streetwise from the official pages listed above. General information only, not legal or financial advice.