KiwiSaver helps many first-home buyers, but a significant number end up returning the funds. Inland Revenue data reveals that in September alone, 108 buyers returned $4.4 million in KiwiSaver withdrawals, while 3430 successfully accessed funds. Mortgage adviser Jeremy Andrews explains that KiwiSaver withdrawals can take up to 15 days, and buyers often need this money for deposits once a sale becomes unconditional.
KiwiSaver funds are usually sent directly to the buyer’s lawyer to pay deposits or settlements. However, if a sale falls through due to issues beyond the buyer’s control, the money is returned to KiwiSaver. If a buyer causes the sale to collapse, they may lose their deposit. Rupert Carlyon of Kōura notes this issue can arise, particularly with delayed new builds, and could grow if developer challenges increase. Kernel’s Catherine Emerson adds that returned funds are uncommon, with only two instances this year.
The Otago Times describes a Dunedin woman with $90,000 in KiwiSaver still can't buy a home in part due to strict asset caps. Key Mortgages explains when KiwiSaver can help second-chance buyers.
RNZ asked Jeremy Andrews of Key Mortgages whether first home buyers are better off making extra regular repayments or saving up a lump sum. Getting it right could save years off your total mortgage.
Key Mortgages advise 1news how homeowners could significantly reduce long-term mortgage interest by making simple repayment adjustments and reviewing loan structure regularly.
Key Mortgages comments with Tony Alexander and TMM Online the prospect of whether rising interest rates and global tensions are prompting a more cautious approach from buyers. Is mortgage demand softening as households take time to reassess affordability and market conditions?
NZ Banks are offering cash incentives to retain existing home loan clients. Jeremy of Key Mortgages summarizes with NZ Herald, whether to switch or stay depends on factors like break fees, equity, and overall costs. We can help and negotiate with your current bank to find which is the smarter move.
Key Mortgages recently joined Ryan Bridge on Newstalk ZB, to discuss the recent jump in mortgage rates and what it means for Kiwi borrowers.
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