Example 2 - John and Sarah

How John and Sarah bought a house with KiwiSaver. 

 

John and Sarah earned a combined income of $125,000 in the last year and have put in an offer on an existing home in Auckland for $600,000. As they have been paying rent in Auckland, they have only managed to save a $50,000 deposit.

Their bank has advised it will lend them $480,000.

John has been a member of KiwiSaver since July 2007, when it was first launched, and has contributed the minimum percentage of his salary/wages each year. Sarah, has been a KiwiSaver member since August 2009.

Both John and Sarah submitted applications to Housing New Zealand for the HomeStart grant and have both been approved for $5,000. They have also made applications to their KiwiSaver scheme providers to withdraw their contributions to help with their first home. They are able to withdraw a combined total of $60,000 from their KiwiSaver accounts.

                                                                                                             

House purchase price	$600,000
Minimum deposit required by lender	$120,000 (20%)
Deposit components	Saved deposit $50,000
	KiwiSaver HomeStart grants $10,000
	KiwiSaver first-home withdrawal $60,000
Deposit provided by client	$120,000 (20%)
Bank Loan	$480,000 (80% of LVR)