How John and Sarah bought a house with First Home Grant and KiwiSaver first-home withdrawal.
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 First Home 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|
|First Home Grants $10,000|
|KiwiSaver first-home withdrawal $60,000|
|Deposit provided by client||$120,000 (20%)|
|Bank Loan||$480,000 (80% of LVR)|