How to Use Your KiwiSaver Account to Get Ahead

If you’re planning to buy a home in Hamilton or anywhere in the Waikato region, one of the first questions you’ll ask is: How much can I borrow for a mortgage? It’s a big decision, and the answer depends on a few key things — your income, your expenses, your deposit, and even your credit score.

What Affects How Much You Can Borrow for a Mortgage?

Income, Expenses, and Credit Score

Your income is the starting point. Lenders want to know how much you earn — and how stable that income is. If you’re employed full-time, that’s fairly straightforward. If you’re self-employed or your income varies, they’ll look more closely at your financial history to understand your earning patterns.

But income is only part of the picture. Your existing debts also play a big role. Credit cards, car loans, and other personal loans can all affect how much you’re able to borrow. Lenders consider your total financial commitments to make sure you can comfortably manage a mortgage on top of them. Keeping your debt under control shows you can handle repayments responsibly, which strengthens your application.

Deposit Size and LVR (Loan-to-Value Ratio)

Your deposit is the amount of money you put toward the purchase upfront. In New Zealand, most lenders prefer a deposit of at least 20%. But there are options for lower deposits — especially for first-home buyers. You may be able to get a loan with a deposit from as little as 5%.

How Do Banks and Brokers Assess How Much You Can Borrow for a Mortgage?

Bank Assessments

When you apply directly with a bank, they’ll use their own calculator to work out how much you could borrow. They look at:

Income – not just how much you earn, but how stable it is (salary, self-employed income, or contract work).
Expenses – your everyday living costs such as food, transport, insurance, and utilities.
Debts – things like credit cards, car loans, personal loans, Afterpay, or store finance. Even small limits on unused credit cards are counted.
Deposit – how much you’ve saved or built up through KiwiSaver or other sources.

On top of that, banks apply a test (or “stress”) interest rate, which is higher than the current rate. This is to check whether you could still afford repayments if interest rates rise in the future.

Broker Assessments

Mortgage brokers, like Andre Stokes here in Hamilton, take a wider view. Instead of relying on just one bank’s criteria, brokers work with multiple lenders — each with their own calculators and lending rules. This means:

You’ll often have a better chance of approval if one bank says “no.”
You can compare borrowing amounts across lenders.
You’re more likely to find a solution that fits your income, debt, and goals.

Brokers also help you present your application in the best light — especially if you’re self-employed, have variable income, or already have existing debts.

Borrow for a Mortgage in Waikato: What’s Typical?

Waikato Property Prices

Property values across the Waikato Region can vary considerably, depending on the location:

Hamilton City: The average house price as of June 2025 is approximately NZ$788,171, according to CoreLogic data compiled by Opes Partners.
Waikato Region Overall: Median prices hover around NZ$735,000 as of June 2025, having surged from about NZ$340,000 a decade earlier.
Te Kūiti (Waitomo District): This remains one of the most affordable areas in the region. The average house value stands at NZ$392,550,

This underscores a substantial price range—from Te Kūiti’s mid-$300k to Hamilton’s upper-$700k—highlighting how location plays a pivotal role in affordability for buyers.

First-Home Buyers in Waikato

If you’re taking your first steps onto the property ladder, you may have access to several helpful schemes:

1. KiwiSaver First-Home Withdrawal

After contributing to KiwiSaver (or a complying super fund) for at least three years, you may be able to withdraw most of your savings—including member contributions, employer contributions, government contributions, and investment earnings—to help with your first home purchase.

You must leave a minimum of NZ$1,000 in your KiwiSaver account, and not all funds are withdrawable (e.g., Australian super transfers and certain government kick-start amounts may be excluded).

Withdrawals are restricted to a property you intend to live in—this cannot be used to purchase investment properties.
Check out the IRD website for more information

2. Kāinga Ora First-Home Loan

With this option, you can secure a home loan with a deposit as low as 5%, thanks to Kāinga Ora underwriting the remainder of the deposit risk for participating lenders.
Kāinga Ora – Homes and Communities

Eligibility criteria include being a first-home buyer (or a previous owner in a similar financial place as a first-home buyer), meeting maximum income thresholds (e.g., <$95,000 for individuals without dependants or <$150,000 combined for co-buyers), and purchasing a home you intend to live in.

The loan includes a 1.2% Lender’s Mortgage Insurance (LMI) premium, payable upfront or added to the loan balance.

Tips to Increase How Much You Can Borrow for a Mortgage

Reduce Your Debt
Banks look closely at your existing debt, such as credit cards, personal loans, and car finance. Paying these down (or closing unused credit facilities) lowers your monthly commitments, which can free up more borrowing power.
Increase Your Deposit
The bigger your deposit, the less risk the lender takes on. This can not only increase how much you’re able to borrow but may also give you access to better interest rates and more lenders.
Improve Your Credit Score
Your credit history shows lenders how reliable you are with money. Paying bills on time, avoiding missed payments, and keeping debt levels manageable can strengthen your application and make banks more willing to lend.
Use a Broker
Mortgage brokers have access to a wide range of lenders and know the different borrowing criteria. They can help present your situation in the best possible way and find a lender who’s more likely to offer you the maximum amount.

Contact Andre for a Personalised Borrowing Assessment

Every buyer is different. Your income, deposit, and goals all affect how much you can borrow for a mortgage. Andre Stokes is a local mortgage broker based in Hamilton. He knows the Waikato market and works with a range of lenders.

Ready to find out how much you can borrow? Contact Andre today for a free, personalised borrowing assessment.

How to Use Your KiwiSaver Account to Get Ahead Despite Economic Challenges

In New Zealand, a KiwiSaver account is an essential part of planning for financial security. With rising unemployment and trimmed incomes, many Kiwis feel uncertain about their future. However, KiwiSaver accounts can offer more than just retirement savings. In this blog, we’ll explore how using a KiwiSaver account can help you stay ahead financially. Whether you’re saving for a first home, maximizing contributions, or planning long-term, a KiwiSaver account provides a smart way forward.

Using Your KiwiSaver Account for a First Home Deposit

For many Kiwis, buying a first home is a major financial goal. KiwiSaver accounts can play a key role in achieving it. You may be eligible to withdraw funds from your KiwiSaver account to help with a first home deposit. However, a few important criteria apply.

To use your KiwiSaver account for a home, you must have contributed to it for at least three years. Additionally, the property you’re buying should be intended as your primary residence. Your mortgage adviser or KiwiSaver provider can help you understand eligibility requirements.

Saving for a home deposit can be difficult, especially with rising living costs. A KiwiSaver account offers a valuable boost, making homeownership more attainable. By using your KiwiSaver account, you reduce the financial pressure of securing a full deposit from personal savings alone.

How to Withdraw KiwiSaver Savings for a Home Purchase

When you’re ready to use your KiwiSaver account, it’s essential to know the steps involved. First, contact your KiwiSaver provider well before purchasing a property. They will guide you through the application process, which can take time.

You’ll need documentation, including a sale and purchase agreement, proof of identity, and confirmation from your lawyer. Each provider may have unique requirements, so it’s best to check ahead. By preparing, you’ll avoid delays and stay on track for a successful home purchase.

Maximising Your KiwiSaver Contributions During Uncertain Times

Economic challenges make saving difficult, but KiwiSaver offers some flexibility. Even if income is tight, consider contributing what you can. Regular contributions grow over time, providing greater returns down the track. Maximising your KiwiSaver contributions now could give you a stronger financial foundation in the future.

One option is contributing the minimum amount needed to receive the government’s annual contribution. For most people, contributing around $1,042 each year secures a government contribution of $521. This is a simple way to grow your KiwiSaver balance without stretching your budget too far.

Another option is to increase your contribution rate slightly, if you can manage it. Increasing by even one percent can make a noticeable difference over time. For many people, adjusting contributions is easier when it’s gradual.

Using KiwiSaver as a Long-Term Financial Strategy

KiwiSaver isn’t only about retirement or home deposits; it’s also a valuable long-term strategy. Over time, KiwiSaver balances benefit from compounding returns, which means your money grows faster the longer you contribute. By thinking of your KiwiSaver account as a long-term strategy, you create a plan that can adapt to future financial needs.

While it’s tempting to focus only on immediate expenses, keeping KiwiSaver in mind as a future asset can make a difference. The longer you contribute, the more substantial your savings will become. If economic conditions change, having a strong KiwiSaver balance provides options for a secure retirement or future investment.

Understanding KiwiSaver Fund Performance in Changing Markets

KiwiSaver funds are invested in different types of assets, which means they can fluctuate based on the market. During economic downturns, your KiwiSaver balance may experience drops or slow growth. However, this isn’t necessarily cause for concern.

A temporary dip doesn’t mean your KiwiSaver account will lose value long-term. Markets naturally fluctuate, and KiwiSaver is designed as a long-term investment. Many people see growth in their balances again as markets recover.

However, it’s essential to choose a KiwiSaver fund that matches your risk tolerance. If seeing fluctuations causes stress, consider shifting to a more conservative fund. On the other hand, those comfortable with short-term risk might prefer a growth fund.

Using Your KiwiSaver Account to Manage Rising Living Costs

With rising living costs, it’s natural to feel financial pressure. While KiwiSaver isn’t a quick fix, it provides options to relieve stress in the long run. By using a KiwiSaver account wisely, you build financial security, which helps you handle higher costs without immediate worry.

For some, this may mean using KiwiSaver contributions as a forced savings method. By automatically contributing from your income, you’re saving steadily without thinking about it. Over time, these contributions build up, giving you a resource to rely on in the future.

For those planning for retirement, steady contributions to KiwiSaver help balance out rising costs over the years. Even if inflation or prices increase, a well-managed KiwiSaver account gives you a cushion for the future. In this way, KiwiSaver becomes a tool for managing not only current, but also future living expenses.

Planning for Future Financial Needs Using KiwiSaver

Thinking ahead helps you make the most of your KiwiSaver account. Start by setting specific goals. Are you saving for a home, retirement, or simply building financial security? Knowing your goal allows you to plan and make decisions that suit your timeline.

If your main goal is retirement, aim to maximise contributions when possible. For homeownership, assess how much you need and plan accordingly. A mortgage adviser can help clarify how your KiwiSaver balance might affect mortgage options or first home grants.

KiwiSaver is flexible, allowing you to adapt your strategy as your life changes. You can increase or decrease contributions, adjust funds, or even switch providers. Using your KiwiSaver account effectively requires keeping these options in mind.

Working with a KiwiSaver Specialist

A mortgage or KiwiSaver specialist offers valuable guidance when using your KiwiSaver account. They can help you understand how contributions, fund choices, and withdrawals affect your financial plan. Working with a specialist gives you confidence that you’re making informed decisions, especially during uncertain times.

They can also provide updates on KiwiSaver policies or market changes that could affect your balance. If you have questions or concerns, a specialist is there to help you navigate them. By having expert advice, you’ll be better prepared to use your KiwiSaver account effectively.

Final Thoughts on Using a KiwiSaver Account

Economic challenges are a reality, but a KiwiSaver account remains a powerful tool for financial planning. By using your KiwiSaver account wisely, you can stay prepared despite uncertainty. Whether for a first home or long-term stability, KiwiSaver provides options and security.

Stay informed, keep contributing, and seek advice when needed. With a thoughtful approach, a KiwiSaver account can help you reach financial goals and create a stable future. Reach out to a specialist if you need help with planning or advice on using KiwiSaver effectively.