KiwiSaver for Couples Buying Together in NZ

When couples buy a home together, both partners can potentially access their KiwiSaver balances to create a combined deposit. This pooled approach often makes the difference between affording a suitable property and falling short. Understanding how joint applications work helps couples maximise their available funds.

The rules are straightforward when both partners qualify, but complications arise when eligibility differs between partners.

Both Partners Eligible

When both partners are first home buyers with three years KiwiSaver membership each, both can withdraw their balances. Combined withdrawals can create substantial deposits.

Each partner applies separately through their own KiwiSaver provider. Applications can be submitted simultaneously once you have a signed sale and purchase agreement.

For a new build, eligible couples can combine both their KiwiSaver withdrawals, creating significant deposit funds.

One Partner Previously Owned

If one partner has previously owned property and the other is a first home buyer, only the first home buyer can access KiwiSaver withdrawal. The previous owner cannot use this benefit regardless of their current housing situation.

This affects many couples where one partner bought before the relationship while the other remained a renter. The previous owner's KiwiSaver stays in their account.

Both partners can still purchase the property together. The first home buyer withdraws their KiwiSaver, and the couple combines this with other savings for their deposit.

Mixed Membership Duration

When one partner has met the three-year membership requirement and another has not, only the eligible partner can withdraw immediately.

Consider timing your purchase to allow both partners to reach eligibility. If one partner is six months away from three years, waiting may be worthwhile if their balance is significant.

Alternatively, proceed with the eligible partner's withdrawal and accept that the other partner's KiwiSaver remains unavailable for this purchase.

Ownership Structures

How you structure property ownership matters for future implications. Common arrangements include joint tenants (equal shares with survivorship) and tenants in common (specified shares that pass through your estate).

Ownership shares do not need to match contribution amounts. You might contribute 60 percent of the deposit but own the property 50/50 as joint tenants.

Legal advice helps determine the appropriate structure. Your solicitor can explain implications for relationship property, estate planning, and potential future separation.

Maximising Combined Funds

Review both partners' KiwiSaver balances and fund types. Ensure both are in appropriate funds for your purchase timeline, typically conservative if buying within one to two years.

Confirm both partners contribute enough to claim the full member tax credit. Even small shortfalls mean leaving government money on the table.

Consider whether one partner should increase contributions before purchase. Extra contributions now become available as part of the withdrawal later.

Application Process

Each partner applies separately to their own KiwiSaver provider. You will both need to provide the same sale and purchase agreement and proof of your relationship.

Coordinate timing so both applications process before settlement. Processing times can differ between providers. Apply as early as possible to allow for any complications.

Both withdrawals go to your solicitor's trust account. Your solicitor combines all deposit sources, including both KiwiSaver withdrawals, for settlement.

After Purchase

Both partners remain KiwiSaver members with at least $1,000 in their accounts. Contributions continue toward retirement, building from this minimal base.

Future property purchases cannot use KiwiSaver withdrawal. Having used this benefit once, you no longer qualify regardless of circumstances. The benefit is specifically for first home buyers.

Continue contributing to rebuild your KiwiSaver balances. The same principles of fund selection and contribution rates apply as you save toward retirement rather than home ownership.