Kiwisaver First Home Buyers
Purchasing your first home is a big step, exciting and also daunting at the same time especially if you are looking to use your Kiwisaver contributions and don’t know where to start.
These 3 steps are a good place to start for Kiwisaver first home buyers:
Step 1: Contact your Kiwisaver provider to obtain a pre-approval withdrawal letter which will tell you the balance you can withdrawal from your Kiwisaver account to go towards your purchase.
Step 2: Checking your eligibility for the First Home Grant from Kainga Ora.
Kainga Ora gift first home buyers (or second chance home owners) $3,000.00- $5,000.00 towards the purchase of an existing home or $10,000.00 to purchase land to build on.
If you are a second chance home owner you must meet the same standard eligibility criteria as a first home buyer;
Not previously received the First Home Grant/HomeStart Grant or Kiwisaver Deposit Subsidy before;
Not have realisable assets worth more than 20% of the house price or land you are wanting to purchase; and
The proposed property price must not exceed the price cap set.
You can find out more about the First Home Grant check out Kainga Ora’s website https://kaingaora.govt.nz/home-ownership/
If you require any assistance with your Kainga Ora First Home Grant application, do not hesitate to contact our office for our assistance. We regularly assist our clients with these applications.
Step 3: Once you have your pre-approval withdrawal letter from your Kiwisaver provider and your approval for the First Home Grant from Kainga Ora, now is a good time to met with your bank, financial institution or mortgage broker to see how much you could borrow based on the funds you can put towards a purchase. Knowing a price range within the property market can help with your house hunting.
Once you know what you can spend on your home and are looking to make an offer, we recommend that you either have the agent include a clause to allow your lawyer to review the contract, or send the unsigned contract to your lawyer for review beforehand. Remember, once you have signed on the dotted line, you have entered a legal contract with serious consequences.
Written by Christie Nelson
Registered Legal Executive