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 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.
Key Mortgages shares details with Good Returns how expanded low-deposit lending options may help eligible first home buyers enter the market sooner and with better pricing
As featured in Stuff, buying property with friends or family can improve affordability, but clear agreements and proper structure are essential.
Banks and Mortgages advisers discuss with New Zealand Herald, why home loan approvals may take longer as lenders apply more detailed affordability checks and tighter financial assessments.
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