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KiwiSaver first-home deposit subsidy

KiwiSaver first-home deposit subsidy

You can apply for the deposit subsidy if you have belonged and have regularly contributed to a KiwiSaver scheme, complying fund or exempt employer scheme for at least three years.

The subsidy is $1,000 for each year of contribution to the scheme:

  • 3 years of contributing = $3,000 (the minimum you can get)
  • 4 years of contributing = $4,000
  • 5 years of contributing = $5,000 (the maximum you can get)

You can buy a property with other people who may or may not also qualify for a deposit subsidy.

Housing New Zealand administers the deposit subsidy on behalf of the government.

You may receive the deposit subsidy only once, and it is paid directly to your solicitor on settlement day. You need to submit an application to Housing New Zealand for the deposit subsidy at least four weeks prior to the settlement date. The subsidy cannot be paid out after settlement date has occurred, so please ensure that you apply within the stipulated timeframes.

It will take 5 working days to assess an application for the deposit subsidy, providing you include all the required supporting documentation. If you are eligible, we will give you a letter to confirm the deposit subsidy is available. You can take this to the bank as it counts towards the total finance you have available to buy your first home. We will also send legal documents to your solicitor which you will need to sign and return to us no later than five working days prior to settlement date. Once we receive these documents, we will arrange to pay the subsidy into your solicitor’s trust account on the day of settlement.

Alternatively, you are able to apply for a KiwiSaver deposit subsidy pre-approval, if you have not yet found a house to purchase. A pre-approval is valid for 180 days and cannot be extended. At the end of the 180 days if you have still not purchased a property, you will need to make a new application for a further pre-approval.

A pre-approval means that you are free to house hunt with the knowledge that, providing the house you eventually buy meets the house price cap criteria and that nothing has changed from when you made your application, you will be eligible for the subsidy.

If you have a pre-approval, all that you are required to do is to send Housing New Zealand your signed agreement for sale and purchase, no later than two weeks prior to settlement date. Please note that it is not essential that the agreement for sale and purchase is unconditional, but it must be signed by both the vendor and the purchaser.

If you have previously owned property, you may still be eligible for the deposit subsidy. The same application process is followed; however there is an additional section in the form (Section E, page 6) that has to be completed by those who have previously owned property, but no longer currently have a share in property.