Often the biggest hurdle for first home buyers is saving for a deposit… But thankfully there are some tools and strategies available to you to pull together a deposit faster. There’s the usual personal savings, cutting back on spending and the bank of “mum and dad”. But did you know, KiwiSaver can be a powerful tool to help you garner that deposit together faster?
KiwiSaver first-home withdrawal
If you’re looking to buy your first home and have been contributing to a KiwiSaver scheme for at least three years, then you could qualify for a KiwiSaver first-home withdrawal. You can withdraw up to all your savings, except $1,000 must remain in your KiwiSaver account after the first-home withdrawal has been made.
20% Deposit Myth Buster!
Its commonly expected that you’ll need to save a 20% deposit. But this isn’t always the case, there are low deposit options. New builds, for example, are exempt from LVR restrictions that require banks to have a 20% deposit for home loans. This means you may only need a 5% deposit for that first home if you choose to build new. Needing a smaller deposit is one way to fast track your way onto the property ladder.
First Home Loans
Kāinga Ora also offer a low deposit option for first home buyers: With a First Home Loan you only need a 5% deposit, which means getting into your first home is that much easier.
Read next: Dictionary for First Home Buyers
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