Money feels tight for a lot of Kiwis right now, with day-to-day costs still climbing. On top of that, the Reserve Bank's recent rate increases mean a new mortgage will generally cost more each month, and you may be able to borrow a bit less than you would have a few months ago. So it’s understandable if home ownership feels a little further away than it did last year.
But it's worth knowing the bigger picture too. First home buyers made up a record 29% of all property purchases in July, well above the long-term average of around 22%. House prices are still well down from their 2022 peak*, and lenders now have more flexibility to ask for lower deposits than they did a few years back. None of that makes things easy, but it does mean a first home could still be realistic, especially if you’ve been saving steadily and planning ahead.
You can use your KiwiSaver savings towards your first home
Here's something worth knowing if you didn't already: your KiwiSaver account isn't just for retirement. You can use your KiwiSaver savings to help fund your first home deposit, and it's become one of the main ways Kiwis get into their first place.
Here's how to make the most of it, and how the withdrawal itself works.
Your first home game plan, step by step
- Check you're eligible. You'll need to have been a KiwiSaver member for at least three years and not owned property before.You'll need to leave a minimum of $1,000 plus any Australian-sourced superannuation funds in your account. The full eligibility criteria can be found here or on the IRD website.
- Boost your balance while you can. Every extra dollar in your KiwiSaver account can help you build your deposit. If your budget allows, consider increasing your contribution rate or making voluntary contributions on top of what comes out of your pay. Try the Hive KiwiSaver Calculator to see how different scenarios could change what you might have for your deposit.
- Make sure your fund type matches your timeline. The right fund type for your KiwiSaver investment will largely depend on when you're planning to buy. Whether that's next year or a few years off, talk to your Adviser to make sure your Plan aligns with your timeline.
- Get an eligibility letter before you start house hunting. When you’re ready to start looking, get in touch and we’ll send you a letter confirming you're eligible for a first home withdrawal and roughly how much you'd have available. It's what a Mortgage Adviser or lender will need to see to get you sorted with pre-approval for your home loan.
- Start the paperwork with plenty of time to spare. You can apply directly through Hive with a withdrawal form and the usual supporting documents. Aim to get your application in at least 10 business days before you need the funds to purchase your home. Starting early means things are more likely to go smoothly on settlement day.
- Once you've moved in, reset for retirement. After you’re settled, it's a good moment to review your KiwiSaver account for the next big goal of retirement. Run a few scenarios through the Hive Retirement Calculator or talk to your Adviser to make sure you’re set up for the retirement you want.
Your Adviser can connect you with the right people
Your Adviser's focus is your KiwiSaver account: making sure it's set up right and working towards your first home goal. When you're ready to talk mortgages, they can connect you with a trusted Mortgage Adviser who'll compare rates across lenders and help you find the loan that fits your situation. Two experts, working together, so you've got the right person for every part of getting into your first home.
One thing to watch for
Once you're deep in mortgage territory, you might hear from your bank that it'd be "simpler" to move your KiwiSaver account to them at the same time. It's worth knowing you don't have to do that, and it certainly isn’t a requirement for getting a mortgage with a bank. We covered why in more detail here: Don't feel pressured to move your KiwiSaver account.
Talk to your Adviser
Whatever your timeline, whether you're a year away or still working out what's realistic longer-term, it's worth a check-in with your Adviser. They can look at where your KiwiSaver savings sit today, talk through what a deposit could look like given your situation, and connect you with a Mortgage Adviser when the time's right. No pressure, just a clearer picture of where you stand.
Talk to your Adviser today or get in touch with the Hive Client Care Team on 0800 242 023 or hello@hive.co.nz.
*Source: Cotality Monthly Housing Chart Pack, August 2026
