It is more common knowledge amongst Kiwis that you can use your Kiwisaver for your first home purchase. But did you know that you can still use your Kiwisaver if you have previously been on the property ladder?
So, what is the Kiwisaver Second Chance?
The second chance Kiwisaver is a feature of the Kiwisaver scheme that allows you to withdraw your Kiwisaver for the purpose of purchasing a home, even if you have been on the property ladder before. For example, if you bought a home in a previous relationship, and then separated, you might lose ownership of the property. Later on, you may be interested in buying a home. So, you may be eligible for the Kiwisaver second chance. The catch is you must ‘look’ like a first home buyer. So there is a criteria that you must meet to qualify for the second chance Kiwisaver.
Some of the criteria include:
- You have been enrolled in Kiwisaver for three years or more.
- You don’t own or have a share/ interest in any property anymore (except for the ownership of Maori land).
- You haven’t made a withdrawal of your Kiwisaver balance for a home deposit previously.
Previous Home Owner Process
If you have previously owned a property, then before you apply for your Kiwisaver withdrawal, check you are eligible for the second chance withdrawal with Kāinga Ora. Before you apply for your Kiwisaver second chance withdrawal, you will need to receive a letter from Kāinga Ora. Submit an application form through Kāinga Ora, who will determine whether you qualify for the second chance Kiwisaver. If you are deemed to be in the same financial position as a first-time home buyer, Kāinga Ora will provide you with a letter that must be forwarded to your Kiwisaver scheme provider.
Check your Kiwisaver Health
You want to make sure you are on the right Kiwisaver plan for your goals and unique situation. This is important for ensuring that your Kiwisaver funds are performing in the best way for you. Our friends at National Capital can help you run a Kiwisaver health check and get you on the right track!
Once you are approved, jump on Money Compare
Take advantage of Money Compare to help you navigate the beginning stages of the home loan process. With Money Compare, you can compare different home loan rates so that you can make the most fully informed choice about such a big life purchase. Don’t forget to use Money Compare to talk to a mortgage broker.
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