Can I use KiwiSaver to buy a house bus instead of a first home?

The first-home purchase withdrawal option for KiwiSaver is designed for buying a home in the traditional sense. Photo / Mark Meredith

It may sound like a good idea to use your savings for a motorhome but it doesn’t meet requirements of the act.

Can we use our KiwiSaver money to buy a nice house bus?

Instead of using KiwiSaver to buy your first house but be tied to one place, get a home on wheels and wake up to a new view every morning.

You're not alone in thinking a motorhome is a fantastic way to live - the New Zealand Motor Caravan Association has seen its membership grow an average of 15 per cent a year.

Currently, it says, it represents 31,000 family groups, so a lot of people are obviously attracted to being able to "stop off wherever interest is piqued by local attractions without the hassle of advance booking and rigid scheduling".

"For many, this is the ultimate recreational lifestyle - to explore the 'real' New Zealand, at their leisure, enjoying everything each stay has to offer," the association says.

So time for a reality check.

I put your question to Nigel Jackson, Westpac's head of investment.

"Unfortunately not," he says.

"A house bus doesn't meet the requirements of the KiwiSaver Act, which requires that first-home withdrawals be made in relation to an estate in land," Jackson says.

The first-home purchase withdrawal option for KiwiSaver is designed for buying a home in the traditional sense - a house on land.

That could also include an apartment or a section that you plan to build a house on.

To get your money for a first-home purchase you need to be over 18, have been a KiwiSaver member for at least three years, not have tapped it to buy a house before and plan to live in the home you buy.

You will need to apply to your provider for the withdrawal when you have an unconditional sale-and-purchase agreement, although your KiwiSaver provider should be able to give you conditional approval for the withdrawal if your mortgage lender has asked to see that.

KiwiSavers can now withdraw any member tax credits they have earned as well as their contributions and any made by an employer.

The $1000 kick-start payment has to stay put.

Your KiwiSaver provider will arrange for the money to be paid into your lawyer's trust fund account around the settlement day, from where it will be paid to the vendors.

If the sale falls through at the last minute your lawyer will repay the money to your provider.

If your heart is really set on that nice house bus, then it could be a matter of waiting until you can access your KiwiSaver nest egg in retirement - currently 65, so long as you've been in KiwiSaver for five years.

Disclaimer: Information provided is stated accurately to the best of the respondent's knowledge at the time of publication. It is general in nature and should not be construed, or relied on, as a recommendation to invest in a particular financial product or class of financial product. Readers should seek independent financial advice specific to their situation before making an investment decision.

To have your KiwiSaver questions answered by the Herald's panel of industry players email Helen Twose, helen@helentwose.co.nz. Sorry, but Helen cannot answer all questions, correspond directly with readers, or give financial advice.