A couple recently decided to purchase a home together. 

They both had Kiwisaver and were wanting to withdraw their Kiwisaver funds for their purchase.  However, one of them had owned a home previously.

They contacted Housing New Zealand and were advised that to be eligible for the “Second Chance” Withdrawal through your provider you need to answer YES to ALL the following conditions:

  • I have not received a first home KiwiSaver withdrawal before, and I have been contributing to KiwiSaver for at least three years.
  • I have previously owned a home, but at the time of my application NO LONGER have an interest in a property.
  • I/We have a combined gross (before tax) annual income earned in the last 12 months of $80,000 or less (for one buyer), or $120,000 (for two or more buyers).
  • My realisable assets are less than 20 percent of the house price cap for the area I am buying in.  For example, the current house price cap in Wellington region is $450,000, so your realisable assets must be under $90,000.  If you are buying in certain other areas the house price cap may only be $350,000 and therefore your assets would need to be under $70,000.

Fortunately for the couple, they were able to answer “Yes” to all of the above conditions and proceeded to apply to Housing New Zealand for a Letter of Determination to provide to their Kiwisaver provider to show that they were eligible for the “second chance” withdrawal. 

We strongly recommend you apply to Housing New Zealand for this Letter of Determination as soon as possible as it takes up to four weeks to obtain.  Waiting for this approval letter is the most common reason why KiwiSaver Second Chance Withdrawals get delayed.  

*Please note income thresholds and house cap prices are current as at the date of this article