KiwiSaver & HomeStart Grant

If you have been in KiwiSaver for at least three years and have contributed, at least, the minimum percentage of your income to your KiwiSaver Scheme, then you may be eligible for the KiwiSaver HomeStart Grant (Deposit Subsidy). 

There are two different grants available, one for newly built houses and one for existing houses. If you are purchasing a brand new home or building one, then you may be able to get $2,000 for each year you have been in KiwiSaver to a maximum of $10,000.   The other option is for buying existing homes and you may be able to get $1,000 for each year you have been in KiwiSaver to a maximum of $5,000.   So you could receive between $3,000 and the maximum of $10,000 towards your deposit from the Government, depending on your situation.

If you are a couple, you could potentially receive up to $10,000 in first home buyer government grants if you have both been in KiwiSaver for 3-5 years!  OR if you are building then it could be up to $20,000 towards your new home!

Buying an existing home:

* There is a maximum amount on how much your home can cost, to be eligible for the grant:

  • Auckland $600,000
  • Hamilton City, Tauranga City, Western Bay of Plenty, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District,  Queenstown Lakes District $500,000
  • All other areas $400,000

* The house must be used as your primary residence for at least 6 months after settlement and it is the only house you will own

* There is also a cap on your income, your gross annual income earned in the last 12 months must be $85,000 or less (before tax) for one buyer, or have a combined gross annual income earned in the last 12 months of $130,000 or less (before tax) for two or more buyers.

* You must have a deposit of 10% or more of the purchase price.  The 10% deposit includes the money you can withdraw through the KiwiSaver savings withdrawal , the HomeStart grant amount you or the other purchaser may be eligible for and any other funds, such as savings, fixed and term deposits or funds already paid to a real estate agent.

* You must also be buying a property that is any of the following property or land arrangements: fee simple, stratum estate (freehold and leasehold), cross-lease (freehold and leasehold), leasehold and multiple-owner Maori land.

Buying land to build a NEW home on or buying off the plans:

There is certain criteria specific to buying or building a new home, it is all outlined here for you

* If buying land to build on you must have a fixed price building contract that clearly shows the cost of building the home and projected date for completion

* If you are buying off the plans then there must be evidence of a projected date for completion, i.e. a signed contract or agreement

* You must live in the house as a primary residence for at least 6 months from the date of the compliance certificate is issued.

* You must have funding for the construction of the new home

* The total cost of both land and building must be within the house price caps for each region:

  • Auckland $650,000
  • Hamilton City, Tauranga City, Western Bay of Plenty, Kapiti Coast District, Porirua City, Upper Hutt City, Hutt City, Wellington City, Nelson City, Tasman District, Waimakariri District, Christchurch City, Selwyn District,  Queenstown Lakes District $550,000
  • All other areas $450,000

* The land or site must be ready to be built on

* There is also a cap on your income, your gross annual income earned in the last 12 months must be $80,000 or less (before tax) for one buyer, or have a combined gross annual income earned in the last 12 months of $120,000 or less (before tax) for two or more buyers.

* You must have a deposit of 10% or more of the purchase price.  The 10% deposit includes the money you can withdraw through the KiwiSaver savings withdrawal, the HomeStart grant amount you or the other purchaser may be eligible for and any other funds, such as savings, fixed and term deposits or funds already paid to a real estate agent.

Before you apply for the deposit subsidy we recommend you find out the following about your KiwiSaver scheme account:

* The name of your scheme provider and what type of scheme it is

* How long you have been contributing

* How much you have been contributing.

This information will help determine your eligibility for the subsidy.

You must apply online for the deposit subsidy here: Kiwisaver HomeStart-Grant Application

Once you have applied for the subsidy you will get a letter similar to this,  Sample Grant Approval, this letter will confirm that you are pre-approved for the subsidy and how much you are eligible for.

Have you been a previous home owner?

If you have previously owned your own home and are in a similar financial position as that of a first home buyer you may qualify for the KiwiSaver HomeStart Grant.

This subsidy is available to previous home owners who meet certain criteria regarding their income and realisable assets.  More information about this can be found on the Housing New Zealand Website.

For more information or to discuss your options please contact us

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