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Home Start Grant + Kiwisaver — Free Money!

Home Start Grant + Kiwisaver — Free Money!

The in’s and out’s of KiwiSaver & the First Home Buyers Grant

If you've already got your first home then you'll probably find the next two posts irrelevant. Keep your eyes peeled for some upcoming tips on how to best manage your mortgage, and investment properties —  A second home could be more realistic than you may think!

In my first post (The Money Myth That Trips Everyone Up) we talked about hiking up those KiwiSaver contributions. Now you're at the point where it’s time to see what your fund can get you.

KIWISAVER, its simple:

To use your funds to purchase your first home, you need to have been a member for at least three years.

  • Another sneaky rule is you must intend to live in the property. It cannot be used to buy an investment property.
  • If that’s you, then you can take everything in your Kiwisaver account minus $1,000 which has to be left behind.

The FIRST HOME BUYERS GRANT comes next:

There is a little more to this application but essentially it’s free money. To get pre-approved click on the link here: Home Start Grant Application

  • The first rule is you need to have been paying into your KiwiSaver Fund for at least three years. You also need to make sure your employer has been contributing over this time.
  • The second rule is you need to earn less than $85,000 as an individual, or $130,000 if there are two of you purchasing the home. This is your earnings per IRD for the prior 12 months - to see this log onto your My IRD.
  • The third requirement is the purchase price cannot exceed the following amount:
House Caps.PNG

If you meet the criteria and you are purchasing an existing/older home, the HomeStart grant will give you $1,000 for each year of contribution to the scheme:

  • 3 years of contributing = $3,000 (the minimum you can get)
  • 4 years of contributing = $4,000
  • 5 years of contributing = $5,000 (the maximum you can get)

Buying brand new or building? The HomeStart grant is $2,000 for each year of contribution to the scheme:

  • 3 years of contributing = $6,000 (the minimum you can get)
  • 4 years of contributing = $8,000
  • 5 years of contributing = $10,000  (the maximum you can get)

Have you got a significant other or business partner that you're buying the house with? If there are two of you, then double the amounts above.

The Home Start Grant can be hard to get your head around. If you do need any help with working out what you're eligible for, send me a message via the Contact page.

TAKEAWAYS

  • Kiwisaver: your funds can be used as long as you have been a member for three years and intend to live in the property for 6 months 
  • How long have I been contributing to my Kiwisaver? Contact your Kiwisaver Scheme Provider
  • Home Start Grant: Free Money $1,000 - $10,000 per person
    • You and your employer must have been contributing to your Kiwisaver for 3 to 5 years 
    • You must earn under $80,000 as a individual or $130,000 as a couple. Check this via My IRD: Link Here
    • You must buy a house under the house caps for your area
  • Home Start Grant Application: Link here
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