Navigating the KiwiSaver Withdrawal for Your First Home

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.

Buying your first home is an exciting step, but it can also feel overwhelming. If you’ve been contributing to KiwiSaver, you may be able to use some of your savings as a deposit for your first home. Here’s how the process works and what you need to consider before making a withdrawal.

What is KiwiSaver?

KiwiSaver is a retirement savings scheme designed to help New Zealanders save for their future. A valuable feature of the scheme is that it allows you to use your KiwiSaver funds to help buy your first home, giving you a significant financial boost when you need it most.

Can You Withdraw KiwiSaver for a House Deposit?

Yes, after contributing to KiwiSaver for at least three years, you can withdraw most of your balance to help with the purchase of your first home. The funds you can take out include:

Your contributions
Your employer’s contributions
The government contribution
Interest you have earned
Fee subsidies (if you got these).

However, you can’t withdraw the initial $1,000 government kick-start (if applicable). Funds transferred from an Australian Complying Superannuation scheme cannot be withdrawn.

Who is Eligible?

To be eligible for a KiwiSaver first-home withdrawal:

You must have been a KiwiSaver member for at least three years.
You need to be buying your first home (or in some cases, meet the criteria for a “second-chance” buyer).
The home must be for your personal use, not as an investment property.

How to Start the Process

The first step is to contact your KiwiSaver provider to get the necessary forms. You’ll need to provide documents like your sale and purchase agreement, along with your solicitor’s details. Your solicitor plays a key role in managing the transfer of funds on settlement day.

How Much Can You Withdraw?

Most first-time buyers can withdraw all of their KiwiSaver balance except for the $1,000 kick-start. This can provide a significant boost to your home deposit, making it easier to meet lending criteria or reduce the amount you need to borrow.

Key Considerations

Before you withdraw from KiwiSaver, there are some important factors to think about:

Impact on Your Retirement Savings
KiwiSaver is primarily for retirement. Taking a large chunk out now will mean less for your retirement later. Consider whether you may want to increase your KiwiSaver contributions after purchasing your home to rebuild your balance.
Covering Other Costs
While using KiwiSaver helps with your deposit, there are other costs involved in buying a home. You’ll need to budget for legal fees, moving costs, and possibly repairs or renovations after you move in.
Timing
Ensure that your withdrawal is processed in time for settlement. Start the process as soon as you have a sale and purchase agreement to avoid delays that could affect your ability to complete the purchase.

Can You Use KiwiSaver for Building?

Yes, you can use KiwiSaver to buy land and build a new home. The same rules apply, and you must intend to live in the property. If you’re building, make sure your plans fit within your budget and timeline, as construction projects can often have delays or unexpected costs.

Work with a Mortgage Broker

Navigating KiwiSaver withdrawals and the home-buying process can be tricky. This is where a mortgage broker can help. An independent advisor, like Andre Stokes from Mortgage & Insurance NZ, can guide you through the process. With access to a range of lenders, a broker can help you find the best home loan rates while also advising on how best to use your KiwiSaver funds.

What Happens Next?

Once you’ve filled out your withdrawal forms and provided the necessary documentation, your KiwiSaver provider will process your request. Your solicitor will ensure that the funds are transferred in time for settlement.

It’s a good idea to keep communication open with both your KiwiSaver provider and your solicitor throughout the process. That way, everything will go smoothly when it’s time to complete your home purchase.

Final Thoughts

Using your KiwiSaver funds to buy your first home can make a huge difference in achieving your homeownership goals. The process can feel complex, but with the right advice and planning, it’s a great way to turn your savings into a home deposit.

If you’re thinking about making a withdrawal, be sure to start early, understand the full process, and work with professionals to ensure everything goes smoothly. With KiwiSaver and a solid plan in place, you’ll soon be holding the keys to your first home.