Kiwisaver has two features to help you buy your first property – the Kiwisaver Home Start Grant and the Kiwisaver First Home Withdrawal.
The Kiwisaver Home Start Grant provides eligible first home buyers with a grant up to $5,000 for individuals and up to $10,000 where there are two or more eligible buyers to purchase an existing older home. In addition, the Kiwisaver Home Start Grant also provides eligible first home buyers with a grant of up to $10,000 for individuals and up to $20,000 where there are two or more eligible buyers to help with the costs of purchasing a brand new home.
Changes to Kiwisaver property buyer eligibility criteria from 1 August 2016:
Maximum house price value:
The house price values have now been increased by $50,000 to new levels of $400,000 for properties in Hawke’s Bay. This house price limit applies to existing older properties.
In addition, a new house price gap has been added to $450,000 for properties in Hawke’s Bay which are new properties purchased off the plan, house and land packages or a newly built property where the code of compliance certificate has been issued within the last 6 months.
Income Qualification:
To qualify for the above Kiwisaver grant (and savings withdrawal) the maximum income permitted has now been increased from a limit of $80,000 for one buyer, and $120,000 for two or more buyers, to the new eligibility figures of $85,000 for a single buyer, and $130,000 (before tax) for more than one buyer.
These income limits are based on income earned in the previous 12 month period.
For more information concerning eligibility for first home buyers or for additional information relating to those who have previously owned a properly and wish to apply for funding, please contact one of our Property Lawyers Gerry Sullivan, Julia Trautvetter, Adrian Barclay or Lincoln Reid.