Common deposit sources
Personal savings, term deposits, proceeds from an asset sale, an eligible KiwiSaver first-home withdrawal and a properly documented family gift can all contribute. A lender will usually want to see how funds accumulated and understand large credits or borrowed funds.
KiwiSaver first-home withdrawal
IRD currently says eligible members generally need at least three years of KiwiSaver membership. A withdrawal may include member, employer and government contributions and investment earnings, but $1,000 must remain. Australian-transferred retirement savings cannot be withdrawn for this purpose.
Confirm eligibility and the amount with the KiwiSaver provider early. A lawyer will normally need time to complete the application and settlement arrangements.
Key First Home Loan criteria
- The minimum deposit can begin at 5%, while the participating lender’s credit and affordability criteria still apply.
- Published gross-income caps are $95,000 for one buyer without dependants; $150,000 for one buyer with dependants; or $150,000 combined for two or more buyers.
- The property must be the borrower’s home and generally be under one hectare, with other eligibility criteria applying.
- The currently published Lender’s Mortgage Insurance premium is 1.2% of the loan.
Eligibility for a government-supported product does not require a bank to approve. Organise income, expenses, debts and source of funds to assess the real pathway and total cost.