KiwiSaver First Home Withdrawal 2025-26: Eligibility, How Much & How to Apply

Buying your first home in New Zealand is one of the biggest financial decisions you’ll make, and KiwiSaver exists to help you get there sooner. There are two distinct KiwiSaver benefits for first-home buyers: the KiwiSaver first home withdrawal, which lets you access most of your accumulated savings to use as part of your deposit, and the First Home Grant, a government top-up of up to $10,000 per person that you can claim on top of your withdrawal. Used together, these two benefits can add tens of thousands of dollars to your deposit. This guide covers everything you need to know about both — eligibility, amounts, the application process, and timing.

Who Can Withdraw KiwiSaver for a First Home?

To qualify for a KiwiSaver first home withdrawal, you must meet all of the following criteria:

• 3-year membership: You must have been enrolled in KiwiSaver for at least 3 continuous years. This counts from the date your first contribution was received, not the date you signed up.
• First-home buyer: You must be purchasing your first residential property. If you have ever owned a home or land in New Zealand (or overseas), you generally do not qualify — unless you fall under the second-chance rules described below.
• Buying to live in: The property must be your primary residence. You cannot use a first home withdrawal for an investment property, a rental, or a holiday home.
• Age: You must be at least 18 years old.

All buyers on the title who are KiwiSaver members can make a withdrawal for the same purchase, so a couple buying together can each withdraw from their own accounts, effectively doubling the combined deposit boost.

What Types of Property Qualify?

The withdrawal can be used for:

• An existing residential property (house, townhouse, apartment)
• A new build house or townhouse
• A house-and-land package
• Vacant land on which you intend to build a home
• A unit title property

The property must be in New Zealand, and you must intend to live in it as your main home within a reasonable time of settlement.

How Much Can You Withdraw?

You can withdraw almost your entire KiwiSaver balance — the only restriction is that $1,000 must remain in your account so it stays open. Everything else is available, including:

• Your own contributions — everything you and your employer have contributed over the years
• Employer contributions — your employer’s 3% minimum (or more), net of Employer Superannuation Contribution Tax (ESCT)
• Government contributions — the annual government member tax credit (up to $260.72 per year from 1 July 2025, halved from $521.43 under Budget 2025)
• Investment returns — all growth, interest, and dividends accumulated in your fund

There is no cap on how much you can withdraw beyond the $1,000 minimum retention rule. If your balance is $60,000, you can withdraw $59,000.

To see how your current KiwiSaver balance is growing, use the KiwiSaver Calculator to model contribution scenarios, or the KiwiSaver Retirement Projector to project your long-term balance.

The KiwiSaver First Home Grant

The First Home Grant is a separate government payment administered by Kainga Ora (formerly Housing New Zealand). It does not come from your KiwiSaver account — it is additional money paid directly toward your home purchase.

Grant Amounts

Property type	Grant per year of KiwiSaver membership	Maximum grant per person
Existing home	$1,000/year	$5,000 (after 5+ years)
New build	$2,000/year	$10,000 (after 5+ years)

For a couple where both partners qualify with 5+ years of membership, that is up to $10,000 for an existing home or $20,000 for a new build. This can make a significant difference, particularly for new builds in higher-price regions.

Income Caps

To qualify for the First Home Grant, your income in the previous 12 months must be below:

Buyer type	Income cap
Single buyer	$95,000
Two or more buyers (combined)	$150,000

Income is assessed on your pre-tax earnings for the 12 months before your application date.

House Price Caps

The property must be below regional price caps set by Kainga Ora. These caps vary by region and are updated periodically. As a general guide, price caps for existing homes are typically lower than those for new builds, reflecting government policy encouraging new housing supply. Check the Kainga Ora website for the current caps in your specific region before proceeding.

Grant Eligibility Requirements

In addition to income and price caps, you must:

• Have been contributing to KiwiSaver for at least 3 years (minimum to claim any grant)
• Have been contributing at least the minimum contribution rate — you cannot have been on a contributions holiday for the full period
• Be a New Zealand citizen, permanent resident, or resident visa holder ordinarily resident in New Zealand
• Not currently own any other property

Step-by-Step: How to Apply for a KiwiSaver First Home Withdrawal

The withdrawal process involves your KiwiSaver provider and your solicitor. Here is the typical sequence:

1. Make an offer and get a signed sale and purchase agreement. Your application can be submitted once your offer is accepted. Some providers will accept conditional agreements (subject to finance or building inspection), while others require an unconditional agreement. Check with your provider early.

2. Contact your KiwiSaver provider. Let them know you want to make a first home withdrawal. They will send you the required application form or guide you to their online application.

3. Complete the withdrawal application form. You will need to provide the property address, the agreed purchase price, your solicitor’s or conveyancer’s name, firm, and trust account details, and confirm your eligibility.

4. Submit supporting documents. Typically required: a copy of your signed sale and purchase agreement, your IRD number, and proof of identity. Your provider may request additional documentation if you are applying under the second-chance criteria.

5. Provider processes the withdrawal. Your provider will verify your eligibility and process the withdrawal. The funds are transferred directly to your solicitor’s trust account — they are never paid directly to you.

6. Funds applied at settlement. Your solicitor holds the KiwiSaver funds in trust and applies them to your purchase at settlement, combining them with your other deposit funds and mortgage.

Applying for the First Home Grant

The First Home Grant is a separate application through Kainga Ora, not through your KiwiSaver provider. You can apply online at the Kainga Ora website with proof of your income, KiwiSaver membership duration and contributions, and property details. Both your withdrawal and grant applications can run simultaneously, but allow extra lead time if applying for both.

How Long Does a KiwiSaver First Home Withdrawal Take?

Processing typically takes 10-15 working days from the date your provider receives your complete application. Some providers are faster, particularly for straightforward cases submitted online.

Because of this timeline, it is critical to start the process as soon as your sale and purchase agreement is signed — do not wait until the week before settlement. If your settlement date is 15 working days away and you only submit the application on the day the agreement is signed, you have almost no buffer for any delays.

As a practical guide:

• As soon as you begin house hunting: Contact your provider to understand their specific process and requirements so you are prepared.
• When you have a conditional agreement: Some providers will accept applications at this stage. Submitting early gives you maximum processing time.
• Unconditional agreement: If your provider requires an unconditional agreement, submit your application on the same day conditions are lifted.

Second Chance Withdrawal: For Previous Homeowners

If you have previously owned a home but no longer do, you may still qualify for a KiwiSaver first home withdrawal under what is sometimes called the “second chance” or “previous homeowner” criteria.

To qualify, you must be in a similar financial position to a first-home buyer. This is assessed by your KiwiSaver provider (and potentially referred to Kainga Ora), taking into account:

• The value of your total assets (savings, investments, any other property)
• Any liabilities or debts
• Whether your circumstances are comparable to someone who has never owned a home

Common situations where this applies include people who went through relationship property division (and their share of the former home was insufficient to purchase another), or those who experienced financial hardship that resulted in losing their property.

You will need to provide supporting documentation explaining your circumstances. Each application is assessed individually, so outcomes can vary. Contact your provider early to understand what evidence they require.

Tax on KiwiSaver First Home Withdrawals

There is no tax on a KiwiSaver first home withdrawal. The funds are paid directly from your account to your solicitor’s trust account and applied to your property purchase — this is not considered income and is not taxable.

This distinguishes first home withdrawals from some other scenarios:

• Retirement withdrawals (age 65+): Also not taxable — funds are yours to use freely.
• Significant financial hardship withdrawals: Not taxable, but subject to strict criteria.
• Permanent emigration withdrawals: May have different treatment depending on the destination country.
• Investment returns within your fund: Already taxed annually through the Portfolio Investment Entity (PIE) tax regime at your Prescribed Investor Rate (PIR) — this happens inside your fund before the money reaches your balance, so there is no further tax on withdrawal.

In short, when you withdraw for a first home, you receive the full balance (minus the $1,000 retention) without any further tax deduction.

Tips for a Smooth KiwiSaver First Home Withdrawal

• Check your balance early. Log into your KiwiSaver provider’s online portal or contact them to confirm your current balance and your eligible withdrawal amount. Do this before you start making offers on properties so you know exactly what you have to work with.

• Confirm your provider’s requirements before you need them. Different providers have slightly different processes — some accept conditional agreements, some require unconditional, some have online applications and some require paper forms. Knowing this in advance avoids last-minute surprises.

• Have your solicitor’s trust account details ready. Your provider needs your solicitor’s full name, firm name, and trust account bank details. Get these from your solicitor as early as possible so you can include them on your application the moment you need to submit.

• Apply for the First Home Grant at the same time. The grant is processed through Kainga Ora separately, so the sooner you start both applications simultaneously, the better. Allow extra time if both are running in parallel.

• Your KiwiSaver continues after withdrawal. Withdrawing most of your balance does not close your account or pause your contributions. Contributions from your next pay will continue as normal, and your employer contributions and government contributions will keep coming in. Your account simply starts rebuilding from the $1,000 minimum balance.

• Building a home. If you are purchasing land to build on rather than buying an existing home, you can still use your KiwiSaver withdrawal. The funds are released at the time of land settlement in the same way as for a standard property purchase.

Related Tools and Guides

• KiwiSaver Calculator — See how your contribution rate affects your take-home pay and calculate how much your employer contributes
• KiwiSaver Retirement Projector — Project your KiwiSaver balance at retirement and see how a first home withdrawal affects your long-term savings
• KiwiSaver Contribution Rates Guide — Compare the 3%, 4%, 6%, 8%, and 10% contribution rates
• KiwiSaver Government Contribution 2025-26 — How the $260.72 government member tax credit works post-Budget 2025

Sources

• KiwiSaver first home withdrawal — IRD
• First Home Grant — Kainga Ora
• KiwiSaver Act 2006 — New Zealand Legislation