Automatic enrolment boon for first-home buyer

Kim Jennings. Photo / Natalie Slade

When 32-year-old Kim Jennings returned from travelling more than three years ago, she was automatically enrolled in KiwiSaver when she got a new job.

"I didn't really think about using it to buy a home, I just thought it would be a good thing for my retirement."

But this year, when she found a two-bedroom house in Auckland's One Tree Hill, it turned out to be the perfect opportunity for her to tap into the first-home buyers deposit subsidy.

The subsidy allows first-home buyers, or those in a similar situation, to get at least a $3000 contribution from the Government as long as income and price criteria are met, after being in KiwiSaver for three years.

On top of that, she applied to her KiwiSaver provider to withdraw her contributions and employer contributions to put towards the house deposit.

So far, only 58 people have got the subsidy.

Jennings says the whole process was fairly easy.

"When I sent off the forms, I was notified really quickly."

She had never dealt with Housing New Zealand before and felt some trepidation about it. "But I found them so helpful."

Jennings, a personal assistant, says she would have bought a house anyway but getting money towards the deposit was a bonus.

"It didn't make or break the deal but it certainly was helpful."

Despite there being a price cap of $400,000 on the deposit subsidy for houses bought in Auckland City, she says it wasn't hard to find a place under that price.

"The house isn't huge. There is still a lot around in that price bracket."

Jennings, who has owned property in the past, says it's definitely worth looking into.

"If you're not sure if you are eligible, find out because you might be pleasantly surprised."

Two ways on to property ladder with KiwiSaver help

KiwiSaver can help you to buy your first home or piece of land to build a home on in two ways after you have been in the scheme for at least three years.

First-home deposit subsidy
* Through Housing New Zealand.
* $1000 for each year in the scheme, starting at $3000, up to $5000 after five years.
* You can buy the property with other people who may also qualify.
* You can receive it only once.
* You must be 18 or older.
* You must have contributed to KiwiSaver for at least three years.
* You must have a yearly income of $100,000 or less for one, or two buyers combined.
* You must not own other property.
First-home withdrawal
* You must apply through your provider unless you have owned property before, then go to Housing New Zealand.
* You can withdraw your contributions, employer contributions and all returns but not the $1000 kick-start or Government tax member-credits after being in the scheme for at least three years.