If you are looking to buy your first home, you are probably aware that you can use your KiwiSaver funds towards the deposit. AdviceFirst adviser Casey Woolridge shares three simple things you can do to help give your KiwiSaver money a boost and reach your first home goals faster.
1 – Check you are in the right fund
“KiwiSaver members can choose which type of fund or funds they invest in,” says Casey. “Some are considered higher risk, but often deliver higher returns over the long term. Others are considered lower risk, they are generally less volatile but deliver less returns. You need to be in the right fund for you and your goals.”
2 – Get your Government Contribution
“One of the great benefits of being in KiwiSaver is that every year the Government will contribute 50 cents for every dollar you put into your KiwiSaver account, up to a maximum of $1,042.86,” says Casey. “This means that if you contribute $1,042.86 to your KiwiSaver between 1 July and 30 June each year, the Government will contribute $521.43 to your account. You should aim to get the full amount each year.”
3 – Get help creating a plan you can stick to
“Using your KiwiSaver to fund that first home deposit is all about setting goals and putting yourself in the best financial position to achieve those goals. However, it can be hard to know what is an achievable financial goal and a realistic timeframe, when interest rates are changing. Our advisers can help you look at all your savings and investments and create a plan to keep you on track.”
What are the criteria for using KiwiSaver for a first home?
If you’ve never owned a home before and you’ve been in KiwiSaver for at least three years, then you can withdraw your funds to use towards a house deposit. You just need to leave a balance of $1,000.00 in your KiwiSaver account.
There are a few other requirements. You have to live in the property for at least six months and you can’t use your funds to buy an investment property.
If you would like help setting up your KiwiSaver and investments with a first home goal in mind, contact our advisers on 0800 438 238 or email firstname.lastname@example.org