HOW TO FAST-TRACK YOUR WAY TO HOME OWNERSHIP!?? Part 1 ~ Using Kiwisaver!

For the next three weeks, we will be covering specific ways you can?boost your home deposit?to help you get onto the property ladder sooner!

?

The struggle?to save for your own home with the continued rise in costs is becoming more common. It might be that you are finding it difficult to save on top of the rent you have to pay each week???

Our tips and tricks we will share over the coming weeks should be of help!

In this week’s edition let’s look at?how you can use your KiwiSaver as a deposit for your first home.

PART 1: Using?KiwiSaver as a Deposit for Your First Home??

KiwiSaver is traditionally thought of as a long-term savings scheme for your retirement and that is indeed what it was intended for, but, it can also be used as a tool for boosting your deposit to buy your first home! ??

By contributing regularly to your KiwiSaver, you can accumulate a significant amount of savings over time. The bonus is if you have been contributing to KiwiSaver for at least three years, you may be eligible for the?First Home Grant. This grant can provide up to?$10,000?towards your deposit, which can make a significant difference in your ability to purchase your first home.?

?

When it comes to withdrawing money from your KiwiSaver for your first home, there are some requirements you need to meet. It’s always best to talk to us first to give you the complete rundown on withdrawing money for your home deposit, but here is an idea of what you need to qualify:?

?

• Firstly, you must have been contributing to KiwiSaver for?at least three years.
• Secondly, you need to be?buying a home or a piece of land for the first time. If you've previously owned a home, you can still qualify for a withdrawal as long as you no longer have any interest or share in that home.
• You need to plan to?live in the home you're buying, or build a home to live in on the land you're buying.
• There are also income and property criteria to satisfy but if you meet these criteria, you can withdraw all of your own contributions, employer contributions, and government member tax credit contributions, plus all investment returns.
• The only thing you need to leave in your KiwiSaver is the $1,000 government kick-start payment.

?

Once you have determined how much you can withdraw from your KiwiSaver for your first home, the next step is to start the?application process.

To withdraw your KiwiSaver funds, you will need to contact your KiwiSaver provider and give them evidence that you meet the eligibility criteria.

We can help guide you through this process when the time comes. Your KiwiSaver provider will then process your withdrawal request and transfer the funds to your solicitor's trust account. Your solicitor will then use the funds to pay your deposit.

The process of withdrawing KiwiSaver funds for a deposit can take a few weeks, so?it's important to plan ahead?and allow enough time for the funds to be transferred.

?

Using KiwiSaver as a deposit for your first home can be a great way to get on the property ladder sooner! Combining it with your personal savings and potentially the First Home Grant, you can put more towards your deposit which can save you thousands of dollars over the life of your mortgage!

Make sure to look out for?Part 2?next week where we will cover off more about the government grants and ownership schemes that are available for first-home buyers.?

In the meantime, if you're ready to take the next step towards home ownership, or know someone who is, reach out so we can provide advice on the best way to use your KiwiSaver and help you work out how much you can afford to withdraw for a deposit on your first home.

Rodney, Dallas, Nigel, and the Agile Team!

?? 0800 1 AGILE (0800 124 453)

?? [email protected]