By - 23 Jul 2019
For many people trying to purchase their first home,
getting together a deposit is often a daunting thought that may
seem unattainable. There are, however, a number of resources that
you can tap into to help get you to that ever important point where
you can move from paying your landlord's mortgage to paying your
own.
KiwiSaver First Home
Withdrawal
As at June 2018, 2.9 million people were enrolled in KiwiSaver
saving toward their retirement. While this is often seen as the
purpose of your KiwiSaver fund, the Government allows for a one off
withdrawal from your account to transfer your savings into an
asset, namely your own home. You can withdraw all of your KiwiSaver
account, less $1,000 which must remain. This can be used towards a
deposit and may provide a great head start to your deposit savings.
These funds will be released from your KiwiSaver provider to a
trust account only when you are ready to pay the deposit and will
then be paid directly to the vendor or real estate agent.
Housing New Zealand HomeStart Grant
Although being a KiwiSaver member for at least three years is a
requirement for the HomeStart Grant, this is a lump sum payout from
the Government which can be used toward your first home and yes,
you can put this towards a deposit.
Depending on the property you are planning on purchasing, your
time in KiwiSaver, and the number of people buying the property,
you may get up to $20,000 towards your purchase. Again this can be
used toward your deposit. For the full eligibility criteria, visit
the
Housing New Zealand website.
It can take up to 20 working days to withdraw your
KiwiSaver or HomeStart funds and therefore it may be prudent for
you to obtain pre-approval for these funds so they are available
once the deposit is payable.
Help from Parents or a Relative
For some people, receiving money from parents, or another
relative, is a way for them to help get their deposit together. It
is important to document this correctly, not only to ensure you
remain eligible for the HomeStart Grant, but also to protect the
lender's interest should your circumstances change. For more on
this see our previous article on
protecting your gift.
If you are looking to buy your first home, but unsure of how to
access to these types of assistance, get in touch with a member of
our property
team today. The earlier we get involved, the smoother we can
make the process for you.