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.
Westpac may cut trail commissions, risking ongoing client support and advice. Key Mortgages delivers 10 years of trusted, ongoing mortgage advice without extra fees.
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