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March 11, 2019 at 2:02 PM

Before you sign an agreement for the perfect house, first thing to think about is – are you eligible for a KiwiSaver first-home withdrawal?

The eligibility checklist is:

• You have not received the KiwiSaver first-home withdrawal before
• You have been a member of KiwiSaver for at least three years
• If you have previously owned a home, you no longer have an interest/share in that home
• You do not have sellable or “realisable” assets totalling more than 20 percent of the house price cap. (Realisable assets are the belongings you can sell to help buy a home – see useful links below for more information).

Your KiwiSaver provider can issue you a pre-approval which is valid for 180 days.  

Your financial lender will usually require a deposit that totals 20% of the purchase price (this can include KiwiSaver/HNZ HomeStart Grant/personal deposits etc).  It is a good idea to get a pre-approval from your financial lending institute for so you know your house price range.

Many people purchase a pre-existing home but there is also the option of purchasing a new build with your KiwiSaver funds as well.  If you are looking to purchase a new build, ensure you take time to discuss this with your lawyer as you will need to show the land and building contract to your KiwiSaver provider.

Once you pass the eligibility checklist, you need to consider whether you require the KiwiSaver funds for the deposit on the property or to whether they will be used at settlement.

This is important because if you require the funds for the deposit, time consideration needs to be given in the finance condition of the sale and purchase agreement.  

Your lawyer needs to review the agreement before you sign, to ensure the deposit is payable when the agreement becomes unconditional (all conditions have been met).  

If you require the KiwiSaver funds for the deposit you will need to apply for the KiwiSaver funds as soon as you sign the agreement as KiwiSaver providers usually have a minimum timeframe to approve and release these funds.  When you go over the agreement with your lawyer prior to signing, you can get the KiwiSaver documentation completed at the same time, ready for sending once the agreement is signed.

before you sign

Remember to meet with your legal representative and go over the property agreement 

Once the agreement is signed your law firm can no longer protect your interests

Here at O’Sullivan Clemens Lawyers our fully qualified team are happy to help you to ensure the purchase of your first home runs as smoothly as possible.  We can walk you through the completion of your KiwiSaver Withdrawal forms, send them off and follow up with any requirements that may be needed.

We have a team of lawyers, legal executives and support staff who have years of experience in Conveyancing, KiwiSaver and Housing New Zealand HomeStart Grant applications.   

Helpful links:

https://www.hnzc.co.nz/assets/Finance/Documents/KiwiSaver-HomeStart-Brochure-August-2016.pdf

https://www.hnzc.co.nz/assets/Finance/Documents/Buying-Your-First-Home-Made-Easy-Aug-2016.pdf