KiwiSaver and purchasing a home
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Using KiwiSaver contributions to buy your first home |
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More KiwiSaver info
Contact us
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| If you are a first home buyer (or you qualify as a second chance home buyer – see below) you can apply to withdraw any contributions you and your employer have made to your KiwiSaver scheme to help purchase a home. |
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You have been a KiwiSaver member for three years or more |
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You have never made a withdrawal from a KiwiSaver scheme for purchasing a home before |
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The property is intended to be your main home |
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You have never owned a house or land before or you have owned a house or land before but Housing New Zealand
Corporation (Housing New Zealand) determines that you are in a similar financial position to a first home buyer (further details are available on the Housing New Zealand website www.hnzc.govt.nz). |
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Download KiwiSaver Home Purchase Withdrawal Form |
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| You can apply for the home purchase subsidy through Housing New Zealand if you have belonged and contributed to one or more KiwiSaver schemes for at least three years in total. |
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The subsidy is $1,000 for each year of contributions to KiwiSaver, up to a maximum of
$5,000 |
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You can buy a property with other people. If this is the case, you may each qualify for a
subsidy |
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You may only receive the subsidy once. |
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| Eligibility criteria for this subsidy are determined by Housing New Zealand and include minimum contribution levels as well as income and regional purchase price caps. Subsidies are paid by the Government and the subsidy facility is administered by Housing New Zealand. Further details are available from www.hnzc.govt.nz |
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| (Members will need to apply to Housing New Zealand to determine whether they qualify as a second chance home buyer for the withdrawal and subsidy). |
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| The home purchase withdrawal facility and home purchase subsidy are also available to some home buyers who have
previously owned property but have never used either facility and are in a similar position to a first home buyer in terms of matters such as income, assets and liabilities. |
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| For full details on eligibility and more information see www.hnzc.govt.nz |
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> How much can I withdraw from my KiwiSaver Scheme?
You may withdraw your own and your employer’s contributions and any investment earnings in the Scheme (the withdrawal may not include any Government contributions for your benefit i.e. $1,000 kickstart contribution and Member Tax Credits).
> Can I use the withdrawn money to buy a home that I plan on
renting out?
No. The home or land to be purchased must be intended to be your principal place of residence.
> What kind of home can I buy?
You can use the money to purchase a freehold, leasehold or stratum estate (often related to units or apartments).
> Where does the home purchase withdrawal money get paid
to?
Any withdrawal made under the home purchase withdrawal facility is paid to your solicitor to enable completion of the purchase of the property.
> What do I need to do?
As a member of the Westpac KiwiSaver Scheme wanting to withdraw your money, you will need to complete the Westpac KiwiSaver Home Purchase Withdrawal Form.
The trustee of the Westpac KiwiSaver Scheme will require the following from your solicitor, before the payment of the withdrawal:
a) a copy of an agreement for the sale and purchase of an estate in land under which you are a purchaser; and
b) a pre-printed bank deposit slip for your solicitor’s trust account; and
c) an undertaking to the effect that the agreement has gone unconditional; and
d) an undertaking that the funds will be paid to the vendor as part of the purchase price (or, if the sale does not settle, repaid in full to the trustee of the Westpac KiwiSaver Scheme for crediting to your accounts).
> What happens if the purchase of the home falls through?
If the settlement is not completed by the due date (or any agreed extended date), the funds must be repaid by your solicitor to the trustee of the Westpac KiwiSaver Scheme for crediting to your accounts.
> What happens if I have already held property as a trustee?
In this instance, we recommend that you consult your legal adviser to determine your eligibility to make a home purchase withdrawal. Though the general rule is that (unless you qualify as a “second chance” home buyer) you must never previously have owned a house or land, limited exceptions apply where you have only ever owned (or co-owned) land as a trustee.
> What are the eligibility criteria for the home purchase subsidy?
The Housing New Zealand website (www.hnzc.govt.nz) advises (as at 1 July 2010) that to be eligible for the home purchase subsidy, you must:
- be 18 years or over
- have not received a home purchase subsidy before
- be buying your first home, unless Housing New Zealand determines that you qualify as a second chance home buyer
- be planning to live in the house.
- be a member of a KiwiSaver scheme (or a complying scheme or an exempt employer scheme)
- have contributed at least the minimum percentage of your income to a KiwiSaver scheme, complying scheme or exempt employer scheme for at least three years (does not need to be consecutive). From 1 July 2007 to 31 March 2009 the minimum contribution was 4 percent of income. From 1 April 2009, the minimum contribution was reduced to 2 percent
- meet income and regional house price caps (for more information see the Housing New Zealand website)
- be buying one of the following types of property and land arrangements:
- Fee Simple
- Stratum estate (freehold and leasehold)
- Cross lease (freehold and leasehold)
- Leasehold
- be resident in New Zealand.
Additional criteria will apply if you are buying land and planning to build a house on it, or buying an apartment that is being built.
As the home purchase subsidy facility is administered by Housing New Zealand, please visit the Housing New Zealand website www.hnzc.govt.nz for more information or contact your legal adviser.
> How do I apply for the home purchase subsidy?
The application form for the home purchase subsidy can be downloaded from the Housing New Zealand website. You will need to complete the form and return it with the required documents (listed in the application form) to Housing New Zealand.
Investments made in the Westpac KiwiSaver Scheme (Westpac KiwiSaver)
do not represent bank deposits or other liabilities of Westpac Banking
Corporation ABN 33 007 457 141, Westpac New Zealand Limited or
other members of the Westpac group of companies. They are subject to
investment and other risks, including possible delays in payment of
withdrawal amounts in some circumstances, and loss of investment
value, including principal invested. None of BT Funds Management (NZ)
Limited (as manager), any member of the Westpac group of companies,
The New Zealand Guardian Trust Company Limited (as issuer), or any
director or nominee of any of those entities, or any other person
guarantees Westpac KiwiSaver’s performance, returns or repayment of
capital.
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Copyright©2010 Westpac New Zealand Limited |
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