With property prices in Auckland high, due to the city’s growth and popularity, buying your first home can sometimes seem an unobtainable dream. But if you are eligible you could use KiwiSaver to help buy your first home – which could make the challenge easier.
This option for first-time buyers is becoming a more popular choice. Year on year figures show that more people are using their KiwiSaver money to get on the property ladder.
How to use KiwiSaver to help buy your first home
There are two options if you want to use KiwiSaver to help buy your first home. You may be eligible for one or both of them.
The first is to withdraw money from your KiwiSaver account. To do this you must have been paying in for a certain amount of time, be buying your first home and intend to live in it for at least six months. Along with this, you may be able to access a HomeStart grant administered by Housing New Zealand. These grants can be put towards an existing home or a new build.
Before you choose to withdraw the funds, you should make a plan to replace the money. This will ensure you still have an adequate retirement fund – the main purpose of KiwiSaver.
You should also remember that you may not be able to withdraw the money in time for putting down a deposit. Therefore you will need to find that money from another source. It pays to get in touch with your KiwiSaver provider as soon as possible to get the paperwork started. You may be able to get a letter of pre-approval to help you show vendors that you will have the funds available.
Let Innohome help you make the right decision on a property
Deciding to use KiwiSaver to help buy your first home is a big step so it is important to choose the right property.
When you have chosen your first home there are a number of professionals you’ll need to help you. Among them is a professional building inspector like Kevin from Innohome. Before you go unconditional on the sale, you’ll need to get a pre-purchase builders report. This will highlight any issues including those which could be deal-breakers or things you might want to negotiate on.
Our affordable prices mean an inspection won’t cut too far into your house buying budget. We offer prompt service with a detailed report that is easy even for first-time buyers to understand.
To book a pre-purchase inspection with us, give us a call.
Want to learn more about buying your first home?
The following articles might be helpful
- Before you buy your first home
- Moving into your first home
- What you get from a pre-purchase building report