Second‑Chance KiwiSaver Withdrawal Guide – Eligibility & How to Apply

What Is a Second Chance KiwiSaver Withdrawal?

This is a one-time opportunity to use your KiwiSaver savings to buy a home, even if you’ve owned property before.

It’s designed for people who no longer own a home, meet certain financial conditions, and haven’t used a KiwiSaver withdrawal for a home in the past.

It differs from the First Home Withdrawal in that you must meet extra eligibility criteria to prove you’re in a similar position to a first-home buyer.

Why It Matters Now

House prices, life events, and changing personal circumstances mean that many previous homeowners find themselves back at square one. The second chance withdrawal can bridge the gap between savings and a deposit, especially in today’s market.

As one industry commentator put it: “As KiwiSaver balances have gone up, that’s an increasing lifeline for a second chance at home ownership.”

Eligibility Criteria

To qualify, you must:

• Be a KiwiSaver member for at least 3 years

• Not have made a KiwiSaver home withdrawal before

• Have no current ownership interest in property (Māori land ownership is excluded from this restriction)

• Have realisable assets worth less than 20% of the house price cap in your region

What Counts as Realisable Assets?

Kāinga Ora will look at the total value of things you could easily sell for cash, such as:

• Savings and bank balances

• Investments or shares

• A boat, car, or motorbike worth over $5,000

• Term deposits or other easily liquidated funds

How to Apply

The process is straightforward but requires the right documents at each step:

1. Check Your Eligibility
   Review Kāinga Ora’s criteria and make sure you meet them.

2. Apply for a Determination Letter
   Submit an application to Kāinga Ora confirming you qualify as a previous homeowner under the scheme.

3. Send to Your KiwiSaver Provider
   Provide your determination letter, sale and purchase agreement, solicitor’s forms, and ID to your KiwiSaver provider to release the funds.

Real-World Trends

In one recent quarter, Kāinga Ora approved over 1,100 second-chance applications. Life events like separation, financial hardship, and moving to a lower-cost region are common reasons people apply.

As one past applicant shared: “You CAN withdraw second chance with KiwiSaver… if you’ve been through a divorce and now meet the criteria.”

Useful Resources & Backlinks

For full details, refer to:

• Kāinga Ora – KiwiSaver First Home Withdrawal

• Walker Murdoch Law – Second Chance Eligibility

• RNZ – Uptake of Second Chance Withdrawals

Conclusion

The Second Chance KiwiSaver Withdrawal is a powerful tool for getting back into a home of your own. If you’ve been a homeowner before but now meet the criteria, this could significantly boost your deposit.

If you’re unsure whether you qualify, talk to a mortgage adviser who can guide you through the eligibility check and application process.

Call to Action

Ready to see if you qualify? Contact Canterbury Home Loans today to book a free consultation and take the first step towards your second chance at homeownership.