Budget 09: No more Kiwisaver for mortgage payments

Photo / Glenn Jeffrey

There will be no more using KiwiSaver money to help with mortgage repayments.

Revenue Minister Peter Dunne said the KiwiSaver mortgage diversion facility is to be closed to new applicants from June 1. The facility allowed members to divert up to half their KiwiSaver contributions to their mortgage repayments.

Mr Dunne said only about 600 people out of more than a million KiwiSaver members had taken it up.

The cost of the mortgage diversion outweighed the advantages, he said.

Other KiwiSaver features that support home ownership remain, including access to KiwiSaver savings to buy a first home.

- NZPA