Second Chance KiwiSaver Withdrawal – Eligibility, Kāinga Ora Rules & How to Apply

Yes. Some previous homeowners may qualify for a Second Chance KiwiSaver Withdrawal if they no longer own property and Kāinga Ora determines they are in a similar financial position to a first-home buyer. To qualify you must have been a KiwiSaver member for at least three years, must not currently own property, and must not have previously used a KiwiSaver withdrawal to purchase a home. Kāinga Ora assesses each application individually before a withdrawal can proceed.

To qualify as a Qualifying Previous Homeowner, you must have been a KiwiSaver member for at least three years, not currently own any property or share in a property excluding Māori land ownership, not have previously withdrawn KiwiSaver funds to buy a home, have realisable assets below 20 percent of the house price cap for your region, and receive approval from Kāinga Ora confirming your financial position is similar to a first-home buyer.

First apply to Kāinga Ora to confirm you qualify as a previous homeowner in a similar financial position to a first-home buyer. If approved, Kāinga Ora will issue a determination letter. You then submit this letter, along with your withdrawal application, sale and purchase agreement and solicitor certification, to your KiwiSaver provider. Once approved the funds are released to your solicitor before settlement.

No. A KiwiSaver first-home withdrawal can only be used once. However, some previous homeowners may still qualify for a Second Chance KiwiSaver Withdrawal if they previously owned a home but did not use KiwiSaver for that purchase and now meet the financial criteria assessed by Kāinga Ora.

Possibly. Some previous homeowners may qualify for a Second Chance KiwiSaver Withdrawal if they previously owned a property but did not use KiwiSaver to buy that home. Kāinga Ora will still assess whether your current financial position is similar to that of a first-home buyer before approving the application.

If approved, you can usually withdraw most of your KiwiSaver balance including your personal contributions, employer contributions, government contributions and investment returns. The only amount that must remain in your KiwiSaver account is one thousand dollars. The funds are paid to your solicitor or conveyancer and used toward the purchase of your home.

Realisable assets are assets that could reasonably be converted into cash. Kāinga Ora may consider money in bank accounts and savings, term deposits, shares and investments, building society shares, money held by a solicitor or real estate agent for a property deposit, boats or caravans worth more than five thousand dollars, vehicles that are not your primary form of transport, and other individual assets valued over five thousand dollars.

Yes. Divorce or separation is one of the most common situations where people qualify for a Second Chance KiwiSaver Withdrawal. If you previously owned a property but no longer retain ownership after a separation and meet the financial criteria, Kāinga Ora may determine that you are in a similar position to a first-home buyer.

A First Home KiwiSaver Withdrawal is available to people who have never owned property before. A Second Chance KiwiSaver Withdrawal is available to previous homeowners who no longer own property and meet Kāinga Ora’s financial criteria for a qualifying previous homeowner.

Common situations include people who previously owned a home but sold it and returned to renting, individuals who lost ownership following separation or divorce, homeowners who bought a property previously without using KiwiSaver, or people who sold a home due to financial hardship.

Most KiwiSaver withdrawals take ten to fifteen working days once the provider receives all required documents. Because the funds must be released before settlement it is important to begin the application process early and ensure your solicitor submits the paperwork promptly.

Kāinga Ora currently uses a house price cap of five hundred seventy five thousand dollars and a realisable asset cap of one hundred fifteen thousand dollars for previous homeowners in the Christchurch Urban Area, including Christchurch City, Selwyn District and Waimakariri District. These limits may change over time.

Possibly. Kāinga Ora assesses each application individually. In some situations, owning a small share in a property may still allow you to qualify if your overall financial position is considered similar to that of a first-home buyer. Factors such as the value of your ownership share, your access to the property, and your realisable assets may all be considered as part of the assessment.

Yes. A Second Chance KiwiSaver Withdrawal can generally be used toward purchasing a new build, turnkey property, house and land package, or existing home, provided the property will become your principal place of residence and you meet the eligibility criteria set by Kāinga Ora and your KiwiSaver provider.

Kāinga Ora assesses whether you qualify as a previous homeowner in a similar financial position to a first-home buyer. They review factors such as your current assets, previous property ownership, financial position and whether you meet the eligibility criteria before issuing a determination letter.