Are There Income or Price Caps on Using KiwiSaver for a First Home?
Navigating the path to your first home in New Zealand can feel complex, especially with different government schemes and their rules. A common question we hear at Wealth Watch is about income and price caps when using KiwiSaver for a deposit. It’s a crucial distinction, and understanding it can save you a lot of confusion.
Understanding KiwiSaver First Home Income Caps: What Are They?
When people ask about "KiwiSaver first home income caps," they're usually thinking about financial thresholds that once applied to other government home-buying assistance. For the KiwiSaver first-home withdrawal itself, there are no such caps. This is your money, built up through your contributions, employer contributions, and government contributions, plus any returns your fund has earned. It's important to note that while the KiwiSaver Scheme allows a first home withdrawal, financial thresholds do not determine eligibility for this specific withdrawal.
Wealth Watch helps you track these contributions and returns within your chosen KiwiSaver fund. Our platform, which sources data directly from the NZ Disclose Register, provides a transparent view of your fund's performance, including returns since inception. This means you can see exactly how your savings are growing towards your home ownership goal.
The only real "cap" on your withdrawal is that you must leave at least $1,000 in your KiwiSaver account. This ensures your account remains active, as confirmed by Inland Revenue guidelines.
At a glance
Your Savings, Your Withdrawal
The KiwiSaver first-home withdrawal is a withdrawal of your own accumulated savings.
No Income Thresholds
Your current income level does not restrict your ability to withdraw your KiwiSaver funds for a first home. For example, a high-income earner has the same withdrawal rights as someone on a lower income, provided other eligibility criteria are met.
No Property Price Limits
The price of the home you intend to buy does not affect your eligibility to withdraw your KiwiSaver. This means you can use your KiwiSaver for a deposit on a property of any value, such as a multi-million dollar home or a modest apartment.
By the numbers
Current KiwiSaver First Home Income Caps: Who Qualifies?
Let's be absolutely clear: for the KiwiSaver first-home withdrawal, there are no income caps. This means if you meet the basic eligibility criteria for a KiwiSaver withdrawal, your income level won't stop you from accessing your savings. You qualify based on your KiwiSaver membership, not your salary. Therefore, current income caps, which might be set by Kāinga Ora for other schemes, do not apply to the KiwiSaver first-home withdrawal itself. Similarly, for this specific withdrawal, income caps do not apply to individual applicants or joint applicants.
This differs significantly from past schemes. For example, the First Home Grant, which closed on 22 May 2024, did have income caps. It was a grant, not a withdrawal of your own savings. Many people still mistakenly associate these past caps with the KiwiSaver withdrawal. The First-Home Grant, for instance, had similar income criteria that were relevant to its eligibility.
Wealth Watch focuses on providing up-to-date information, ensuring you don't rely on outdated advice. We track changes from official sources like Kāinga Ora, so you know exactly what's available now. Our goal is to empower you with accurate facts, just as we empower you with detailed fund performance data.
Here are the actual eligibility criteria for a KiwiSaver first-home withdrawal, as outlined by Kāinga Ora and Inland Revenue:
- You must have been a KiwiSaver member for at least 3 years.
- You must intend to live in the property you're buying (owner-occupier).
- You cannot currently own a home, land, or a share in property (with an exception for Māori land).
- You must leave at least $1,000 in your KiwiSaver account.
Previous home owners can also qualify as a "second-chance" buyer if Kāinga Ora determines they are in the same financial position as a first-home buyer. This is further explained in the "How Your Income is Assessed..." section below.
How Your Income is Assessed for KiwiSaver First Home Withdrawal Caps
Your income is not assessed for the purpose of a KiwiSaver first-home withdrawal because, as we've established, there are no income caps for this specific scheme. You are simply taking out your own money. The process is straightforward: you apply directly to your KiwiSaver provider.
However, income can be relevant if you're applying for other forms of home-buying assistance. For instance, if a previous home owner applies to Kāinga Ora for "qualifying person" status, they might need to provide income documentation. In such cases, income assessment often uses data from IRD, and income typically includes taxable income, though it may also include other sources. The assessment period for such schemes is typically 12 months. In these more complex scenarios, applicants should consult Financial Advisers. In such cases, you can use myIR to generate a PDF of your income and KiwiSaver deductions, as advised by Kāinga Ora for their specific applications.
Wealth Watch understands that managing your finances is key to home ownership. While we don't assess your income, we help you understand your KiwiSaver's growth. Our platform shows you your fund's returns (net, after charges & tax) over 1-year, 5-year average, and return since inception. This gives you a clear picture of your savings progress.
When considering your overall financial readiness, seeking advice from Financial Advisers can be invaluable. They can help you understand your full financial picture, including how your income affects your borrowing power, not just your KiwiSaver withdrawal.
KiwiSaver First Home Income Caps vs. Other First Home Support Schemes
This is where the confusion often lies. The KiwiSaver first-home withdrawal stands apart from other government initiatives. It has no income or property price caps. You are simply accessing your own savings. This means KiwiSaver income caps differ from First-Home Grant income caps and also differ from First-Home Loan income caps.
Let's compare it to two other key schemes:
These schemes are separate but can be used together. You might use your KiwiSaver withdrawal for your deposit, and then apply for a First Home Loan for the mortgage itself. Kāinga Ora administers multiple schemes, and applicants should check all criteria for each specific scheme they are interested in. It's important to remember that income caps are designed for different purposes across these various schemes. Wealth Watch highlights these distinctions, drawing directly from official sources like Kāinga Ora, to give you accurate context.
At a glance
The First Home Grant (CLOSED)
This grant, administered by Kāinga Ora, did have income and house-price caps. It offered a median of about $5,000 towards a deposit. However, the First Home Grant finished on 22 May 2024 and is no longer available, as confirmed by Kāinga Ora's official website. Wealth Watch wants to make sure you have the most current information, so you don't chase a benefit that no longer exists.
The [First Home Loan](/kiwisaver/first-home/home-loan) (CURRENT)
This scheme, also underwritten by Kāinga Ora, helps eligible buyers get a mortgage with a 5% deposit instead of the standard 20%. Crucially, the Kāinga Ora First Home Loan page no longer publishes income or house-price caps as of September 2025. The earlier caps were removed. This change significantly broadens accessibility, as discussed in the "Future Outlook" section.
Navigating KiwiSaver First Home Income Caps: Tips for Potential Buyers
Since there are no income caps for your KiwiSaver first-home withdrawal, your focus should be on ensuring you meet the other eligibility criteria and maximising your savings. Wealth Watch is designed to help you with the latter.
Here are some tips for potential buyers:
Our platform helps you compare funds across ~29 providers and ~1,000 funds, giving you the insights you need to make informed decisions about your savings.
At a glance
Track Your KiwiSaver Growth
Regularly check your fund's performance on Wealth Watch. We provide detailed data like fees, returns, and risk indicators, all sourced from the NZ Disclose Register. This helps you understand if your fund is performing as you expect.
Understand Your Eligibility
Ensure you've been a KiwiSaver member for at least three years and plan to live in the home, as detailed in the "Current KiwiSaver First Home Income Caps: Who Qualifies?" section.
Maximise Contributions
The more you contribute, the larger your deposit will be. Consider increasing your contribution rate if your budget allows. For example, increasing your contribution from 3% to 6% can significantly boost your savings over several years.
Seek Expert Advice
While Wealth Watch provides general information, Financial Advisers can offer personalised guidance. Potential buyers should seek advice from Financial Advisers to understand their overall financial picture. They can help you understand your overall financial situation, including how your income impacts your ability to secure a mortgage from Mortgage Lenders (banks). Mortgage Lenders can provide pre-approvals, which is a crucial step. Income planning is crucial for eligibility for other home-buying support, and strategies include income management to meet specific thresholds if applying for other schemes.
Stay Informed
The New Zealand Property Market and government policies can change. Buyers should understand the New Zealand Property Market and keep an eye on updates from official sources like Kāinga Ora.
Future Outlook: Potential Changes to KiwiSaver First Home Income Caps
The good news for first-home buyers is that the KiwiSaver first-home withdrawal has remained a stable and accessible benefit for using your own savings. Because it's a withdrawal of your own money, rather than a grant or loan, it's less susceptible to the income and property price cap changes that affect other schemes. This stability is a key feature, as noted by financial commentators.
While the KiwiSaver Scheme rules for withdrawals have been consistent, changes to related schemes, like the closure of the First Home Grant, show that government policy can evolve. Kāinga Ora reviews its home ownership products periodically, responding to New Zealand Property Market conditions and government priorities. This means Kāinga Ora reviews income caps periodically for other schemes it administers. Income caps may change due to economic conditions, and changes are influenced by the New Zealand Property Market. For example, the removal of income caps for the First Home Loan in September 2025 demonstrates Kāinga Ora's responsiveness to market dynamics. Therefore, applicants should stay updated on the latest criteria, as government policy impacts eligibility for various support programs.
Wealth Watch continually monitors official sources to bring you the most current information. We believe that informed decisions lead to better outcomes. Our platform provides the factual data you need to understand your KiwiSaver fund's performance, helping you plan for your future home with confidence. We don't predict future returns, but we provide the historical data and context for you to assess your options.
General information only, not financial advice. Past performance is not a reliable indicator of future results. Figures are sourced from the Disclose Register, Kāinga Ora and Inland Revenue and were current at the time of writing.
Frequently asked questions
Does my income affect my KiwiSaver first home withdrawal?
No. There are no income caps on KiwiSaver first home withdrawals. Your income level doesn't restrict access to your own accumulated savings, whether you earn a high or low salary. You qualify based on KiwiSaver membership and other eligibility criteria, not income thresholds.
Can I use KiwiSaver to buy an expensive property?
Yes. There are no property price limits on KiwiSaver first home withdrawals. You can use your savings toward a deposit on any property value, from modest apartments to multi-million dollar homes, provided you meet the basic eligibility requirements.
How long must I be in KiwiSaver before withdrawing for a first home?
You must have been a KiwiSaver member for at least 3 years. Additionally, you must intend to live in the property as your primary residence, not currently own property, and leave at least $1,000 remaining in your account after withdrawal.
Is the KiwiSaver withdrawal different from the First Home Grant?
Yes, significantly. KiwiSaver withdrawals are your own accumulated savings with no income or price caps. The First Home Grant (closed May 2024) was a government grant with income and property price restrictions. They're separate schemes with different eligibility rules.
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