KiwiSaver boost for buyers

First home buyers were among the big winners from National’s win in last year’s general election.  A series of changes to the KiwiSaver first home buyer packages come into effect from 1 April 2015.

These changes are designed to help lower and middle income first home buyers attain their dream of owning a home.

There are three main changes:

  • Replacing the KiwiSaver First Home Deposit Subsidy with a KiwiSaver HomeStart Grant, doubling the support for buying a new home and increasing the house price limits;
  • Enabling larger KiwiSaver First Home Withdrawals by including employer contributions and the member’s tax credit (meaning first home buyers will now be able to withdraw all of their KiwiSaver savings except the $1000 kick-start);
  • Expanding eligibility for Welcome Home Loans by aligning the house price caps with the new KiwiSaver HomeStart Grant.

The following table summarises the changes.


So what do the numbers look like for a first home buyer?

Let’s use the example of a couple in Napier, both of whom earn $35,000.

After five years of contributing to their KiwiSaver account at the minimum of 3% they will be able to withdrawn $24,377 (this calculation excludes investment returns).

This is made up of Employee contributions of $5,250 each; Employer contributions of $4,331 each (after ESC Tax); and Member tax credits of $2,607 each. That’s $12,188 each.

Add to this the new Kiwisaver HomeStart Grant of $5,000 each for an existing home, or $10,000 each for a new home.


This means the combined amounts available for this couple to purchase an existing home is $34,377, or $44,377 for a new home.

The Welcome Home Loan scheme provides for a minimum 10% deposit, so this couple will be able to buy an existing home in Hawkes Bay up to $343,770. With median prices sitting at around $300,000, this couple could afford a “better than average” home. The may also buy a new home for $443,770

For more information, please call (06) 835-4321 and we’ll direct you to someone qualified to help.

Buying General
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KiwiSaver boost for buyers