KiwiSaver – Can You Pull Money Out For a First Home Ownership Deposit?
Craig and Jenny were a young New Zealand couple trying to make their way in life. They were renting their home, and they were saving for a first home deposit. They wanted to be able to own the home they lived in. To do that they would need to borrow around $300,000 for the purchase price.
They discovered that a $300,000 loan would cost them around $500 per week to service. That means that payments of around $500 would be made to the bank which would cover the cost of the loan and some repayment of the loan. This did not excite them at all.
They thought this was too expensive for them and they wisely decided that they were going to keep saving for their home deposit for the next three years.
They made this decision because the rent on this home that they wanted to own, which they were already renting was within their modest incomes. It was also a modern design and was warm, with good neighbors too.
One day Craig and Jenny read an interesting statement. It was one that really made them sit up and take note. It really caught their attention…
They read, “If today I asked you to save $170 per month for your retirement, you’d say, “No we can’t afford it”. So what if someone invited you to save for your house for the next three years, and the Government paid you (as a couple) $170 per month for your retirement as well?”
What the article was driving at was that the New Zealand Government will pay about $86 each per month to them as a couple while they saved for their home using KiwiSaver. Do you think that Craig and Jenny liked that?
How many people know that they loved it? I’m guessing you would too. The New Zealand Government also thinks so. That is why the government added the home ownership aspect to the KiwiSaver scheme.
Every New Zealand resident that has never owned a home can take advantage of this plan with KiwiSaver. To qualify, you need to be resident and contributing to KiwiSaver for the savings time frame of at least 3 years.
You also need to be willing to wait out the three full years before you buy any home. After this time frame has passed your own contributions and those of your employer can be drawn out for your first owner occupied home deposit.
Craig and Jenny, like many young New Zealand couples will both pull out their money from the KiwiSaver scheme and both move into their jointly owned first home. This will be their owner occupied residential home. That is stating the obvious, but it is an important fact to note.
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Source:Ezinearticles.com
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