There are many misconceptions out there regarding the KiwiSaver HomeStart Grants. After the training session on 29/03/17, we have a very clear picture. The team leader that approves the 15,000 applications each year said, "There are no Second Chances."
You need to be in the position of never owning a home or land in NZ, to be able to take your KiwiSaver out, to buy a property.
However ... If in the past you owned a property, but are now in the same financial asset position as a non-property owner and pass the low asset test of assets under $135,000, you may also apply.
Make sure that you do not have an 'interest' in a home or land. The interest test would stop many people from accessing their KiwiSaver, as their spouse/partner owns the property they live in. Or they have property interest, they didn't even know about.
There are also different types of other grants that are less well known. This is a specialist area, that requires a little assistance before you go putting down a deposit.
But, there are many people in NZ that could get a large financial payment towards their net worth, if they were only to put a plan together to make it happen.
It is not every day that you are offered $20,000.
First home buyer KiwiSaver HomeStart grant
After three years in KiwiSaver, some people also qualify for a KiwiSaver HomeStart grant. This is worth $1,000 a year for up to a maximum of $5,000 after five years of saving with KiwiSaver. If you purchase or are going to build a brand new home you can double the grant, up to $10,000.
If you have a partner who has KiwiSaver and who also qualifies, you could combine your grants to double your deposit for your first home – up to $10,000 total grant. A couple could obtain $20,000 if they purchase or are going to build a brand new home.
To qualify for the HomeStart grant
You need to plan to live in the house for six months or more,
The house has to be under the price limits set by the Government, which are currently;
$600,000 in Auckland, $500,000 in Hamilton City, Tauranga City, Western Bay of Plenty, Hutt City (Lower Hutt), Upper Hutt, Kapiti Coast, Porirua, Wellington City, Tasman/Nelson, Christchurch City and Selwyn district, Waimakariri, and Queenstown Lakes.
$400,000 for the rest of New Zealand.
You must earn no more than $85,000 a year for one KiwiSaver member, and $130,000 combined for two or more KiwiSaver members living together.
Contact us if you would like to own a property using your KiwiSaver as a deposit. It might be a five year plan, but you have to start some time.