KiwiSaver's first-home deposit subsidy
- What the KiwiSaver first-home deposit subsidy can be used for?
- Do the years need to be consecutive?
- Can I use the deposit subsidy to buy a house with other people?
- Can I use the deposit subsidy to buy land?
- What type of property and land are eligible for the deposit subsidy?
- Can I use the deposit subsidy to build on Māori land?
- Can I use the deposit subsidy to buy an apartment?
- Can I use the deposit subsidy to buy a company share property?
- I already own land and want to use the deposit subsidy to build the house. Can I do that?
- I own a home together with some friends. Can I use the deposit subsidy to buy their share in the property?
- Can my partner and I combine our subsidies to buy a house?
What the KiwiSaver first-home deposit subsidy can be used for?
You can apply for the deposit subsidy if you have belonged and 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)
The deposit subsidy can help you buy a home, land to build a house on, or buy an apartment that is being built. It cannot to be used for purchase investment properties. The deposit subsidy became available from 1 July 2010.
Do the years need to be consecutive?
No, you don’t need to make consecutive contributions. So, if you take a six month contributions holiday, you will be eligible after three and a half years (the length of your holiday is added to the minimum three years of contributions.)
Can I use the deposit subsidy to buy a house with other people?
Individuals who are eligible can combine deposit subsidies towards a joint purchase. Buying a house with someone who is not eligible for the deposit subsidy will not affect your eligibility, unless combined incomes exceed the income caps.
Can I use the deposit subsidy to buy land?
Yes, however, you have to build on it within 12 months of buying it, and the cost of building the house plus the cost of the land must not exceed the relevant regional house price cap.
Whether you buy a house or build one, you will have to live in the house for at least six months.
What type of property and land are eligible for the deposit subsidy?
There are four types of property and land ownership arrangements the deposit subsidy can be used for. They are:
| Type of land (estate in land) |
Description |
| Fee simple | Owners are entitled to unrestricted use of the land and may dispose of the land in any way they wish (subject to any relevant laws). |
| Stratum estate freehold and leasehold | Common type of ownership for apartments where an undivided portion of a larger property is owned collectively and a smaller portion (the unit) is owned exclusively. |
| Cross-lease (freehold and leasehold) | Ownership of the land is shared and each owner leases their house from the other landowners. The cross lease agreement outlines the rights and obligations of each owner. |
| Leasehold land |
The owner of the land with a fee simple title (see above definition) enters into a legal agreement (lease) to transfer the right to occupy/use the land to another legal entity for a specific period of time. The lease usually outlines a number of conditions, including the payment of ground rent to the landowner and the lease may be registered against the land title. |
Can I use the deposit subsidy to buy an apartment?
Yes, but you have to live in it for at least six months.
Can I use the deposit subsidy to buy a company share property?
No, you cannot use the deposit subsidy to buy a company share property, as this is a share in a company, not a share in land.
I already own land and want to use the deposit subsidy to build the house. Can I do that?
The deposit subsidy is not available for people who already own land.
The deposit subsidy is for KiwiSaver members who have never owned a home or had an interest in a home. Owning land is considered to be the same as having ‘an interest in a home’.
I own a home together with some friends. Can I use the deposit subsidy to buy their share in the property?
If you own a home together with other people, you effectively have ‘an interest in a home’, and cannot receive the deposit subsidy to buy another stake in the home.
