Buying your first home? In the kiwisaver scheme? Want to know if KiwiSaver can help?
If you’re like most first home buyers, the biggest obstacle you’re facing in getting on the property ladder is your coming up with your home loan deposit.
However, if you’ve been a KiwiSaver contributor, it might be a lot easier for you…..
How can KiwiSaver help me get my first home?
If you’re in the KiwiSaver scheme and looking to buy your first home or build new, then there’s two ways KiwiSaver may help you do it – KiwiSaver Homestart Grant & KiwiSaver first-home withdrawal.
KiwiSaver Homestart grant:
This provides first-home buyers with a grant of up to $5,000 for individuals and up to $10,000 for couples to put towards buying an existing or older home.
If it’s a brand new home, individuals can receive a grant of up to $10,000 or up to $20,000 for couples.
What’s the catch?
- The main criteria for the KiwiSaver Homestart Grant is three years of regular contribution to your KiwiSaver – the longer you’ve been contributing, the larger the grant you’ll be eligible for.
Homestart Grant Changes from August 1st 2016
- Income caps would increase from $80,000 to $85,000 for a single person and from $120,000 to $130,000 for a couple.
- House price caps would increase in Auckland from the existing $550,000 to $600,000 for an existing home, and $650,000 for a new home.
- Caps in Wellington, Christchurch, Hamilton, Tauranga, Queenstown and Nelson-Tasman would increase from $450,000 to $500,000 for an existing home and $550,000 for a new home.
- Caps in the rest of the country would increase from $350,000 to $400,000 for an existing home and $450,000 for a new home.
- The caps will also apply to Welcome Home loans. Those loans enable first home buyers to buy with a 10 per cent deposit and because they are government guaranteed are exempt from the loan-to-value (LVR) ratio limits from the Reserve Bank.
Talk to us today to discuss other criteria to see if you’re eligible.
KiwiSaver First-Home Withdrawal:
If you have been a member of KiwiSaver for at least three years, you may be able to withdraw all, or part, of your savings to put towards buying your first home. However at least $1,000 must remain in your KiwiSaver account.
What’s the catch?
- You must intend to live in the property. It cannot be used to buy an investment property.
- Been a Kiwisaver member for 3 or more years
Interested in exploring how to use your KiwiSaver to contribute towards your first home?
Then schedule in a free, no obligations consultation with one of our friendly mortgage advisers. We’ll answer any of your questions and help you determine if you’re eligible for the Kiwisaver Homestart grant or KiwiSaver first-home withdrawal.
With years of experience helping people like you, along with our background in the banking and debt consolidation industry, we’re in the best position to provide you with advice you can trust. In a matter of minutes we’ll answer all your questions and point you in the right direction – saving you time, money and a whole lot of stress.
Jeff Elias is a registered financial adviser. He worked previously as a mortgage debt reduction specialist and has an intimate knowledge of mortgages. He likes to look for creative solutions where required and enjoys showing people how to structure and pay their mortgage off quickly. Jeff is a father of four and enjoys tennis and walking his dogs.