Using KiwiSaver to buy your first home

Buying your first home is an exciting milestone, and your KiwiSaver savings can play a huge role in making it happen. The larger your first home deposit, the less costly your mortgage will be, so now is a good time to go hard with your savings.

If you’ve been a member for at least three years, you may be eligible to withdraw a portion of your KiwiSaver savings to put towards buying your first home or land to build on. To be eligible, you’ll need to meet the first home withdrawal criteria – see Buying your first home.

ANZ can help guide you through the home lending process, so you’re prepared for when it’s time to buy – see First home buyer. 

The fund you choose for your KiwiSaver savings can make a big difference to the amount you have available when you're ready to buy your first home. 

Think about your timeframe. If you're planning to make a first home withdrawal, it's important to ensure you're in a fund that makes sense for when you expect to purchase. The most suitable fund to be in depends on the timeframe before you plan to buy.

At ANZ Investments, we offer seven different funds to choose from. Each has a unique mix of investment assets, which come with different levels of risk and return. Here's a quick overview:

• Growth assets: These include listed property and equities (shares). They’re higher risk, but have the potential for higher returns. Our Growth and High Growth Funds have a larger proportion of growth assets.
• Income assets: These include cash and fixed interest (bonds). They’re lower risk, so you need to be willing to accept lower returns. Our Conservative and Cash Funds have a larger proportion of income assets.

If you're planning to buy soon, a lower-risk fund like our Cash Fund should give you more certainty about the amount you'll have available. That way, you’re less likely to experience unexpected market drops, and your money will be available when you need it.

If you've got a few years before you plan on buying, a higher-risk fund could potentially grow your savings more over the long term. And you’ll have more time to ride out any ups and downs along the way.

Make sure you continue to ensure your fund (or fund mix) suits the stage of life you’re at. For example, you might choose a lower risk fund in the lead-up to purchasing your first home, but may decide to shift back to a higher risk fund again when your goal shifts to saving for retirement.