KiwiSaver is perhaps one of the most beneficial schemes for those living in New Zealand. What many people don’t realise though is that KiwiSaver can help you out considerably if you are looking to purchase your first home via certain Kiwisaver First Home bonuses. Let’s take a little look at how this is so, shall we?
The majority of people will join the KiwiSaver Scheme when they first start a new job. Your account will get a kick-start of a $1,000 bonus from the government. Your employer will then make compulsory contributions to the account. If your employer does not sign you up, or you do not have a job then you will be able to apply directly to be set up with KiwiSaver. Anybody under the age of 65 has an automatic right to apply.
What most people are concerned with (and what you are most likely going to be concerned with) is the KiwiSaver First Home bonuses that you can look forward to. There are two such bonuses and each of them can be applied for, provided that you have been paying into a KiwiSaver account for at least three years.
Perhaps the major benefit is the fact that new home owners can qualify for a deposit subsidy. This is normally a KiwiSaver First Home bonus, but in limited cases you may be able to apply if you are purchasing a new home despite having purchased one before. The bonus is $1,000 for every year that you have been part of the KiwiSaver scheme. This caps out after 5 years. However, you will be able to join up with a partner for your bonus, and thus the maximum subsidy that you can claim is $10,000, which is of course going to go a significant way towards placing a deposit on your new home. You will need to have placed at least 3% of your income into your account over that time period.
Whilst KiwiSaver money is normally locked until the age of 65 there is a chance that you will be able to withdraw at least some of the money before then if you are purchasing a new home. You will be able to withdraw your contributions and your employer’s contributions. You will not be able to withdraw any tax credits that you have earned however. Neither will you be able to withdraw you $1,000 kick-start bonus.
Obtaining both of these incentives is easy. All you need to do is get in touch with your local KiwiSaver provider and they will guide you through the whole process. The process is rather simple to complete and you should be able to obtain your money quite easily. Honestly, the KiwiSaver first home scheme is absolutely fantastic for everybody, and providing that you have been in employment for at least five years and are making regular contributions you will find that the amount of money that you have towards your new home will ensure that you get something that you actually want. People who are buying their second home may also apply but the chances of being successful are a lot slimmer.
