First home · 4 min read
First-home KiwiSaver withdrawal: the rules, plain
Three years of membership, never owned a home, planning to live there 6+ months. Here's exactly how the first-home withdrawal works.
Smiths Insurance and KiwiSaver
Published 4 March 2026 · FAP licensed · FSP712931
If you're using KiwiSaver to buy your first home, the rules look simple. They mostly are. But the timing and the gotchas matter.
The eligibility test
You can withdraw from KiwiSaver for a first-home purchase if you meet all four:
- You've been a KiwiSaver member for 3 or more years.
- You've never owned a home before (with a "second-chancer" exception if you've had financial hardship and Kāinga Ora confirms you can't get on the ladder otherwise).
- You're buying in NZ and intend to live in the home for at least 6 months.
- You leave at least $1,000 in the KiwiSaver fund (so you stay a member).
What you can withdraw
Almost everything: your contributions, your employer's contributions, the government top-ups, and all the returns earned on those. You cannot withdraw the $1,000 minimum.
What happened to the First Home Grant?
The Kāinga Ora First Home Grant was discontinued in May 2024 — new applications are no longer accepted (approvals issued before the cut-off were honoured). Your KiwiSaver first-home withdrawal is unaffected and remains available, and the separate Kāinga Ora First Home Loan (low-deposit lending) still exists. Check current home-ownership support.
The biggest mistake
Being in the wrong risk band right before you withdraw. If you're in a Growth or Aggressive fund and the market drops 25% in the months before settlement, your deposit just got slashed.
The standard advice: 2 years out from buying, switch to Conservative. 1 year out, switch to Defensive. You'll miss some growth, but you'll be sure of having the deposit when you need it.
Timing
The withdrawal isn't instant. It typically takes 5-10 business days from request to your solicitor's trust account. Your solicitor handles it. you don't get cash in hand.
Start the paperwork at least 2 weeks before settlement to be safe.
Run the First-Home Countdown to see what you'll have available and whether it covers your target deposit.
Source: Inland Revenue, KiwiSaver first-home withdrawal; Kainga Ora, first-home support (ird.govt.nz, kaingaora.govt.nz). General information only. not personal financial advice.
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