Are you dreaming of owning a home of your own but think it’s not possible because you’ve owned a home before and you think KiwiSaver is only available to First Home buyers? The Second Chance KiwiSaver home withdrawal might be the key to turning that dream into reality. It is designed to help those who have previously owned a home but find themselves in a position to start anew, whether that be because of separation, financial hardship, or something else. The withdrawal is specifically for those who have not yet utilised their KiwiSaver for purchasing a home.

Here’s what you need to know.

Eligibility Criteria

To access the Second Chance KiwiSaver home withdrawal, you must meet the following criteria:

1. KiwiSaver Enrolment: You must have been enrolled in KiwiSaver for at least three years.

2. Property Ownership: You must not currently own any property, or any interest/ share in property (with the exception of Māori land).

3. Previous Use of KiwiSaver: You have not previously used your KiwiSaver funds towards the purchase of a home.

4. Realisable Assets: Your realisable assets must be below a certain level to qualify.  The limits differ depending on where the property is located and are subject to change.  For example, currently in the Christchurch City, Selwyn and Waimakariri Districts you cannot have realisable assets totalling more than $115,000.

Realisable assets include:

1. Any cash or money held in bank accounts, including term deposits.

2. Investments held with banks, investment platforms or any other form of provider.

3. Cash paid to a solicitor or real estate agent for a deposit on a property.

4. Any boats, tractors, motorhomes etc. (if the value is over $5,000).

5. Any other individual assets that are worth more than $5,000.

Note: Your KiwiSaver funds are not included as a realisable asset.

How to Apply

If you believe you meet the eligibility criteria, the first step is to contact Kainga Ora to obtain approval to withdraw your KiwiSaver funds for this purpose. If approved, you can then proceed with the application process through your KiwiSaver scheme provider.

Conclusion

The Second Chance KiwiSaver home withdrawal is a good option for those looking to re-enter the housing market to consider. If you satisfy the eligibility criteria, the process allows you to take a significant step towards owning your own home.

For more information or assistance, feel free to contact Olivia Durston, Solicitor (olivia@mmlaw.co.nz/03 377 2900) or any member of our property law team. We are here to help you navigate the path to homeownership.