KiwiSaver for First Home Buyers: 2025 Rules and Withdrawal Tips

If you’ve been contributing to KiwiSaver and are now thinking about buying your first home, you’re not alone. For thousands of Kiwis each year, KiwiSaver provides the crucial boost needed to get onto the property ladder. But as rules evolve, it’s important to understand exactly how it works in 2025 — and how to make the most of your savings when you buy your first home in New Zealand.

 How KiwiSaver Can Help First-Home Buyers

KiwiSaver isn’t just a retirement savings scheme — it’s also one of the most powerful tools available to first-home buyers. If you’ve been contributing for at least three years, you can usually withdraw most of your balance to help fund your deposit.

In most cases, you can withdraw everything except $1,000, which must remain in your account to keep it active. This money can go directly towards your deposit or be paid at settlement to your solicitor or conveyancer.

2025 KiwiSaver Withdrawal Rules

As of 2025, here’s what you need to know about the KiwiSaver First Home Withdrawal:

1. You must have been contributing for at least three years.

2. You can only use it for your first home — not for investment properties.

3. The property must be in New Zealand.

4. You’ll need to sign a statutory declaration confirming you’ve never owned property before (with limited exceptions for “second-chance” buyers).

5. The funds go through your solicitor, not directly to you, so allow plenty of time before settlement.

Important: The government’s First Home Grant ended in 2024, so the KiwiSaver withdrawal is now the main form of first-home buyer support. However, it can still be combined with low-deposit options like the First Home Loan from Kāinga Ora-approved lenders.

 How to Apply for a KiwiSaver Withdrawal

1. Contact your KiwiSaver provider early. Each provider has its own form and process.

2. Apply at least 15–20 working days before settlement.

3. Your solicitor or conveyancer will handle the legal side and send the completed documents to your provider.

4. The provider pays the funds directly to your solicitor once approved — not into your bank account.

5. You can also withdraw your KiwiSaver to pay for the deposit when you are going unconditional on your agreement to purchase a property. Your solicitor would send a copy of the declaration and the signed sale and purchase agreement to get the funds withdrawn to pay for your deposit. Contact you solicitor as soon as you are in a contract to purchase a property to arrange for the KiwiSaver funds to be withdrawn

 Tips to Maximise Your KiwiSaver for Your First Home

• Start contributing more earlier. Increasing your KiwiSaver contribution rate from 3% to 8% can significantly boost your balance faster, however you can also invest in managed funds outside of KiwiSaver, for the additional percentage above 3%. That way you get the benefit of an investment that you can access at any time, without the limitation of only being able to withdraw your KiwiSaver for when you want to buy your first home, have financial difficulty or when you retire.

• Check your fund type. If you’re planning to buy within 1–3 years, consider a conservative fund to reduce the risk of market dips right before withdrawal.

• Combine it with family help or a First Home Loan. KiwiSaver doesn’t have to do all the heavy lifting — combining support can make your deposit go further.

Final Thoughts

Using KiwiSaver for your first home can make homeownership possible years earlier — but understanding the 2025 rules is key to avoiding delays and disappointment.

If you’re unsure how much you can withdraw or how to combine KiwiSaver with other low-deposit options, talk to a mortgage adviser. They’ll help you plan your deposit strategy, align timelines, and get you from saving to owning — sooner than you think.