KiwiSaver and Your First Home Purchase in New Zealand
Announcement posted by Fortune Manning Lawyers NZ 31 May 2012
You can be eligible for KiwiSaver first home withdrawal and housing New Zealand first home deposit subsidy.
If you have been contributing to your KiwiSaver fund for 3 years or more you may have access to the following assistance in your first home purchase:
• KiwiSaver First Home Withdrawal;
• Housing New Zealand First Home Deposit Subsidy.
Fortune Manning can assist you in preparing your applications for these KiwiSaver benefits.
KiwiSaver First Home Withdrawal
This involves making an application to your KiwiSaver provider to withdraw a portion of your savings to put towards the purchase of your first home. Your KiwiSaver provider should be able to supply you with the necessary forms that set out their requirements. Common questions include whether these funds can be applied towards a deposit, or as a repayment to the bank if they have lent you the deposit. Generally not: your KiwiSaver provider will make the payment to your solicitor only after the purchase agreement has gone unconditional, and your solicitor must apply the funds directly in settlement of the purchase.
When submitting an offer on a property, take care to allow enough time between the expected unconditional date and the settlement date for processing of your KiwiSaver withdrawal application. This is 5 working days at a minimum.
Recommendations:
• Check the requirements of your KiwiSaver provider before making an offer on the property;
• Get the forms early, and read them through thoroughly;
• Discuss your KiwiSaver provider's requirements with us prior to submitting an offer, and we will be able to assist you in drafting an offer that fits these requirements.
Housing New Zealand First Home Deposit Subsidy
If you are buying a first home in Auckland for less than $400,000, and you meet certain income requirements, you may be eligible for a first home deposit subsidy. This is a payment of between $3,000 and $5,000 (depending on how long you have contributed to KiwiSaver) that can be put towards settlement. As long as you meet the conditions of the payment, you are not obliged to pay it back.
Again, we recommend you get the forms as early as possible and check through the requirements, as you may need to structure your offer taking these requirements into account. There is an application stage and a contract stage with the First Home Deposit Subsidy. Housing New Zealand will typically need to have received your initial application 4 weeks prior to settlement, and will need to have received the signed contract at least 5 working days prior to settlement.
Fortune Manning can assist you in drafting an offer on a property that takes these requirements into account.
About Fortune Manning
Fortune Manning is a long-standing Auckland lawyers firm. Their recent wins at the NZ Law Awards confirm that they are a firm well recognised by their clients and peers for providing exceptional service. Fortune Manning is described as a full service legal firm. This means they can provide you with a broad range of NZ legal services spanning your most necessary requirements. Their clients range from small to medium businesses through to multi-nationals, from individuals through to charity organisations.
• KiwiSaver First Home Withdrawal;
• Housing New Zealand First Home Deposit Subsidy.
Fortune Manning can assist you in preparing your applications for these KiwiSaver benefits.
KiwiSaver First Home Withdrawal
This involves making an application to your KiwiSaver provider to withdraw a portion of your savings to put towards the purchase of your first home. Your KiwiSaver provider should be able to supply you with the necessary forms that set out their requirements. Common questions include whether these funds can be applied towards a deposit, or as a repayment to the bank if they have lent you the deposit. Generally not: your KiwiSaver provider will make the payment to your solicitor only after the purchase agreement has gone unconditional, and your solicitor must apply the funds directly in settlement of the purchase.
When submitting an offer on a property, take care to allow enough time between the expected unconditional date and the settlement date for processing of your KiwiSaver withdrawal application. This is 5 working days at a minimum.
Recommendations:
• Check the requirements of your KiwiSaver provider before making an offer on the property;
• Get the forms early, and read them through thoroughly;
• Discuss your KiwiSaver provider's requirements with us prior to submitting an offer, and we will be able to assist you in drafting an offer that fits these requirements.
Housing New Zealand First Home Deposit Subsidy
If you are buying a first home in Auckland for less than $400,000, and you meet certain income requirements, you may be eligible for a first home deposit subsidy. This is a payment of between $3,000 and $5,000 (depending on how long you have contributed to KiwiSaver) that can be put towards settlement. As long as you meet the conditions of the payment, you are not obliged to pay it back.
Again, we recommend you get the forms as early as possible and check through the requirements, as you may need to structure your offer taking these requirements into account. There is an application stage and a contract stage with the First Home Deposit Subsidy. Housing New Zealand will typically need to have received your initial application 4 weeks prior to settlement, and will need to have received the signed contract at least 5 working days prior to settlement.
Fortune Manning can assist you in drafting an offer on a property that takes these requirements into account.
About Fortune Manning
Fortune Manning is a long-standing Auckland lawyers firm. Their recent wins at the NZ Law Awards confirm that they are a firm well recognised by their clients and peers for providing exceptional service. Fortune Manning is described as a full service legal firm. This means they can provide you with a broad range of NZ legal services spanning your most necessary requirements. Their clients range from small to medium businesses through to multi-nationals, from individuals through to charity organisations.