Houses are expensive. Accumulating enough money for the deposit alone can be a daunting task.
Earlier this year the Real Estate Institute of New Zealand (REINZ) released a staggering figure. Based on their analysis, they calculated the average Auckland household looking to purchase a house that costs $670,000 may have to save for 832 weeks in order to have a $134,000 deposit for that property. That’s exactly 16 years!
Even if you were looking at borrowing 90% of the value of such a property that means you would still need at a $67,000 deposit. It’s no wonder that KiwiSaver is becoming an increasingly crucial part of getting into a house!
Our top 3 must-knows about using KiwiSaver to buy a home
Who can do it?
Mainly people buying their first house. If you’ve owned a home or land before, you may still qualify under the ‘second chance’ offer - if your position is considered the same as a First Home Buyer. Housing New Zealand makes this decision.
You can take most of it!
You must leave a balance of $1,000 in your account and you can’t withdraw any money transferred in from Aussie Super. Other than that, if you are eligible, you can choose to apply to withdraw part or all of your balance.
3 is the magic number!
You have to have been a member of KiwiSaver for at least 3 years before you can make a first-time withdrawal.