Can you use KiwiSaver to build a house?

Can you use KiwiSaver to build a house?

KiwiSaver offers two features to help with home ownership. These are the first home savings withdrawal and the first home deposit. You can use both of these features to buy a home or buy land to build a home on. However, you can’t use a KiwiSaver withdrawal to help pay for the cost of building a new home alone.

Is HomeStart a good idea?

Great service I have had a great experience with homestart with their standard variable loan. The interest rates are a tiny bit higher than some of the cheapest loans (which sound dodgy anyway) on the market but their fees etc are really low. They don’t charge mortgage insurance either which is a huge saving.

How much deposit do I need to build a house?

Minimum deposit. For construction loans, you’ll need to have at least a 5% deposit1 of the property’s projected value (Lender’s Mortgage Insurance will apply).

Who is eligible for HomeStart grant?

Are you eligible for the KiwiSaver HomeStart Grant? To be eligible, you must have been regularly contributing to KiwiSaver for three years or more and, upon purchasing a home, you must live in the property for at least six months (and it cannot be an investment).

How long do you have to live in your house if you use KiwiSaver?

six months
After purchasing, you must live in the home for at least six months, as you may not use your KiwiSaver money for an investment property. There are some circumstances in which you may use your KiwiSaver money if you have previously owned a home, and our advisers will be able to guide you through this process.

How much of a deposit do I need?

Deposit savings Ideally, you should save as much as possible before buying a home. The minimum required deposit is 10%, but aim for 20% if possible. If you’re borrowing more than 80%1 of the property value, you’ll need to take out Lenders’ Mortgage Insurance or Low Deposit Premium.

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