KiwiSaver Second Chance Home Withdrawal

KiwiSaver Second Chance Home Withdrawal – Who’s Eligible?

The second chance KiwiSaver home withdrawal allows you to utilise your KiwiSaver balance for a home deposit, even if you’ve previously been on the property ladder. We’ve made this article so you can check your eligibility and get some clarity on this lesser known KiwiSaver feature.

As most of us know, your KiwiSaver savings can be used for a first home deposit, but did you know that it’s possible to use your KiwiSaver savings even if you’ve previously jumped on the property ladder? To get this ‘second chance’ at the KiwiSaver home withdrawal, you must meet the criteria for a ‘Qualifying Previous Homeowner’, which we’ve outlined below…

The ‘Qualifying Previous Homeowner’ Criteria

To get a second chance and be deemed as a qualifying previous homeowner, you must meet the following criteria:

  • You no longer own or have a share/interest in any property (other than Maori land ownership)

  • You have not previously withdrawn any of your KiwiSaver balance for use on a home deposit

  • Your realisable assets do not sum to more than 20% of the house price cap for an existing/older property in the region in which you are intending on purchasing your home. The Realisable Asset Caps can be seen below.

    Realisable assets include:

    – Any cash or money held in bank accounts (including term deposits)

    – Investments held with banks, investment platforms or any other form of provider (i.e. stocks, bonds, shares, managed funds, index funds, derivatives etc.)

    – Cash paid to a solicitor or real estate agent for deposit on a property

    – Any cars or motorbikes that are not your main mode of transport

    – Any boats, tractors, motorhomes etc.

    – Any other individual assets that are worth more than $5,000

Example of a Successful Second Chance KiwiSaver Home Withdrawal

James has been enrolled in KiwiSaver for five years. He bought a home in a previous relationship a number of years ago without using his KiwiSaver savings, and since separated with his partner which resulted in him losing any ownership of the house. James is looking at buying a new home and he meets all the criteria to be considered a ‘Qualifying Previous Homeowner’, but he’s wondering about whether his realisable assets are under the required threshold. He wants to use his second chance KiwiSaver home withdrawal to put a deposit down on a house in the Auckland region, but he’s also got $170,000 in cash and shares, as well as a car that he drives to work everyday which is worth $25,000.

Why will James qualify?

kiwisaver-second-chance-home-withdrawal

First of all we can see that James has been enrolled in KiwiSaver for more than three years and he didn’t use his KiwiSaver savings for his previous home. Since separating with his partner, he now has no ownership of the house. Referring to the Realisable Asset Caps below, we can see that the maximum realisable assets James can own to qualify for the second chance KiwiSaver home withdrawal in Auckland is $175,000. His total realisable assets includes his cash and shares, however it excludes his car as it’s his primary method of transport, therefore James’ total realisable assets are $170,000.

As we can see from the prior information and the adjacent checklist, James has ticked off all the criteria, therefore he is eligible for the second chance KiwiSaver home withdrawal!

 

 

Are you unsure if you qualify or not, or would like to talk through your options?

I help Kiwi’s free of charge on how to maximise their KiwiSaver investment. For a free no-obligation KiwiSaver evaluation you can click the button below, and we’ll help get your KiwiSaver savings working for you!

+ Realisable Asset Caps

The KiwiSaver Asset Price Caps are correct as of 15 May 2023 and subject to change..

Far North District

    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Whangarei District
    • First Home Grant house price cap for existing properties: $600,000
    • Realisable Asset Cap: $120,000
  • Kaipara District
    • First Home Grant house price cap for existing properties: $525,000
    • Realisable Asset Cap: $105,000
  • Auckland
    • First Home Grant house price cap for existing properties: $875,000
    • Realisable Asset Cap: $175,000
  • Thames-Coromandel District
    • First Home Grant house price cap for existing properties: $875,000
    • Realisable Asset Cap: $175,000
  • Hauraki District
    • First Home Grant house price cap for existing properties: $550,000
    • Realisable Asset Cap: $110,000
  • Matamata-Piako District
    • First Home Grant house price cap for existing properties: $625,000
    • Realisable Asset Cap: $125,000
  • Hamilton Urban Area (Hamilton City, Waipa District, Waikato District)
    • First Home Grant house price cap for existing properties: $650,000
    • Realisable Asset Cap: $130,000
  • Otorohanga District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • South Waikato District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Waitomo District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Taupo District
    • First Home Grant house price cap for existing properties: $575,000
    • Realisable Asset Cap: $115,000
  • Tauranga Urban Area (Tauranga, Western Bay of Plenty District)
    • First Home Grant house price cap for existing properties: $800,000
    • Realisable Asset Cap: $160,000
  • Rotorua District
    • First Home Grant house price cap for existing properties: $525,000
    • Realisable Asset Cap: $105,000
  • Whakatane District
    • First Home Grant house price cap for existing properties: $500,000
    • Realisable Asset Cap: $100,000
  • Kawerau District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Opotiki District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Gisborne District
    • First Home Grant house price cap for existing properties: $450,000
    • Realisable Asset Cap: $90,000
  • Wairoa District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Napier-Hastings (Napier City, Hastings District)
    • First Home Grant house price cap for existing properties: $625,000
    • Realisable Asset Cap: $125,000
  • Central Hawke’s Bay District
    • First Home Grant house price cap for existing properties: $500,000
    • Realisable Asset Cap: $100,000
  • New Plymouth District
    • First Home Grant house price cap for existing properties: $525,000
    • Realisable Asset Cap: $105,000
  • Stratford District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • South Taranaki District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Ruapehu District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Whanganui District
    • First Home Grant house price cap for existing properties: $425,000
    • Realisable Asset Cap: $85,000
  • Rangitikei District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Manawatu District
    • First Home Grant house price cap for existing properties: $525,000
    • Realisable Asset Cap: $105,000
  • Palmerston North City
    • First Home Grant house price cap for existing properties: $575,000
    • Realisable Asset Cap: $115,000
  • Tararua District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Horowhenua District
    • First Home Grant house price cap for existing properties: $525,000
    • Realisable Asset Cap: $105,000
  • Wairarapa (Masterton District, Carterton District, South Wairarapa District)
    • First Home Grant house price cap for existing properties: $600,000
    • Realisable Asset Cap: $120,000
  • Wellington Urban Area (Kāpiti Coast District, Upper Hutt City, Porirua City, Lower Hutt City, Wellington City)
    • First Home Grant house price cap for existing properties: $750,000
    • Realisable Asset Cap: $150,000
  • Nelson-Tasman (Nelson City, Tasman District)
    • First Home Grant house price cap for existing properties: $650,000
    • Realisable Asset Cap: $130,000
  • Marlborough District
    • First Home Grant house price cap for existing properties: $550,000
    • Realisable Asset Cap: $110,000
  • Kaikōura District
    • First Home Grant house price cap for existing properties: $700,000
    • Realisable Asset Cap: $140,000
  • Buller District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Grey District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Westland District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Hurunui District
    • First Home Grant house price cap for existing properties: $425,000
    • Realisable Asset Cap: $85,000
  • Christchurch Urban Area (Waimakariri District, Christchurch City, Selwyn District)
    • First Home Grant house price cap for existing properties: $575,000
    • Realisable Asset Cap: $115,000
  • Ashburton District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Timaru District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Mackenzie District
    • First Home Grant house price cap for existing properties: $500,000
    • Realisable Asset Cap: $100,000
  • Waimate District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Waitaki District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Central Otago District
    • First Home Grant house price cap for existing properties: $525,000
    • Realisable Asset Cap: $105,000
  • Queenstown-Lakes District
    • First Home Grant house price cap for existing properties: $875,000
    • Realisable Asset Cap: $175,000
  • Dunedin City
    • First Home Grant house price cap for existing properties: $500,000
    • Realisable Asset Cap: $100,000
  • Clutha District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Southland District
    • First Home Grant house price cap for existing properties: $500,000
    • Realisable Asset Cap: $100,000
  • Gore District
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000
  • Invercargill City
    • First Home Grant house price cap for existing properties: $400,000
    • Realisable Asset Cap: $80,000

 

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