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.
Key Mortgages suggests keeping up higher repayments following fixed mortgage rate to currently 4.49%. Repayments over a 20 year term are now similar to what peak market rates payments were over a 30-year loan term.
Jeremy chats with Andrew from NewsTalk ZB about OCR drops affecting mortgage market, turnaround times, and increasing demand.
Key Mortgages shares detail on how credit rating scores can impact your ability to borrow. Talk to us for more information on how to put your best foot forward with main banks
Kāinga Ora loan premium rises to 1.2% post July; Key Mortgages’ Jeremy Andrews says it’s still a good option for many first home buyers
Jeremy Andrews shares some tips and examples with RNZ where bad credit borrowers may still get loans with good explanations, equity, recent history.
Trump’s tariff war hit KiwiSaver balances, affecting first-home buyers' deposits, reports goodreturns.co.nz. Key Mortgages notes increased pressure on buyers and urges shifting to conservative funds and seeking advice to avoid further deposit setbacks amid Trump’s tariff war.
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