There are growing number of Kiwis now relying on Kiwisaver as their money saving mechanism. KiwiSaver members find that this saving system is beneficial because:
The Government contributes 50 cents for every dollar you save;
It is compulsory contribution from your employer;
It is flexible and accompanies your changing situation;
And the main reason is, that it helps you buy your first home.
KiwiSaver forces you to contribute money which you can later withdraw only once.
The requirement to withdraw money;
You must be in KiwiSaver for at least 3 years before you withdraw funds for your first home.
KiwiSaver first home withdrawal is only available to applicants who want to buy homes or land in New Zealand and/or have the right to occupy Maori land.
You need to live in the home or land you intend to buy.
Investment properties do not qualify.
You can only make a KiwiSaver first home withdrawal once.
If you owned property before, you may qualify for a second chance home buyer withdraw.
You can withdraw:
Your contributions
Your employer’s contributions
The government contribution
Interest you have earned
Fee subsidies (if you got these)
Must leave $1,000 in your account.
Author:
Rahisha Bhattarai
Student Legal Officer