A previous newsletter stimulated some interesting conversations around the accessibility of KiwiSaver to purchase a first home. Our article highlighted some of the criteria and rules surrounding the use of KiwiSaver Funds. Two points need to be expanded on and clarified:

To obtain the subsidy people have to apply to Housing New Zealand at LEAST SIX WEEKS BEFORE settlement date. Failure to do this may result in you not receiving the subsidy amount as a consequence. Please also be aware the portion of funds that have been contributed by you and your employer ARE AVAILABLE to use as your deposit. The Government contribution funds are not available to use. 

Whilst you are able to use your employee/employer contributions to form either all or part of your deposit funds when purchasing a first home, it is important to note that these funds can only be made available on the date of settlement. They are paid by your KiwiSaver provider direct to your lawyer and can only be used as part of your funds to purchase a property. 

There has been a tightening of lending criteria for 90-95% loans. With fewer lenders in this category, do talk with us BEFORE you make a move to avoid the stress and disappointment of having a loan turned down. In line with Government budgets, Welcome Home Loans criteria has also become more restrictive. Once again this is an area that we are experienced in, so book a time with me and we can discuss your options.