Use KiwiSaver to pay your deposit

Provided you meet the eligibility criteria, did you know that you can use your Kiwisaver funds to pay the deposit to the vendor when you purchase a property?  In order for the funds to be received on time, it is vital that you notify your solicitor of your intention to withdraw your Kiwisaver funds immediately upon signing an Agreement for Sale & Purchase.  Most Kiwisaver providers require 2-3 weeks to process the application so you will also need to keep this in mind when noting the deposit due date on the Agreement for Sale & Purchase.

Although most banks require a 20% deposit for lending purposes, you may be eligible for a “First Home Loan” which is offered by some banks and underwritten by Kainga Ora.  This loan allows a lender to provide finance with only a 5% deposit required.  We recommend discussing this with your lender or mortgage broker to see if you are eligible.

Feel free to contact Sarah Ratcliffe on 07 444 4091 to discuss your Kiwisaver and conveyancing requirements.