KiwiSaver First Home Deposit Subsidy
(administered by HNZC)
Who
can apply?
Members, who have contributed to a KiwiSaver scheme, complying superannuation scheme or exempt employer scheme for three or more years, and meet the eligibility criteria, are entitled to a home ownership deposit subsidy of $1,000 per year of savings, up to a maximum of $5,000 per person. These three years do not have to be consecutive, so if the member takes a six month contribution holiday they will be eligible for the minimum deposit subsidy after three-and-a-half years. Payments are made for full years only (i.e. you don’t get $4,500 for 4 ½ years).
How to apply:
Applications for the deposit subsidy must be made via HNZC.
It is recommended that Members apply early in the purchase process to determine eligibility.
For the purpose of assessing the level of contributions, applicants will need to provide payment records from Inland Revenue, their employer or their scheme provider(s).
To apply, visit:http://www.hnzc.co.nz/kiwisaver and
http://www.hnzc.co.nz/utils/downloads/4372180CE3F348846C0A0E1879A6DD4A.pdf
To be eligible for the first home deposit subsidy, applicants must:
- be aged over 18
- have contributed* at least at the minimum rate of their income for at least three years to a KiwiSaver scheme (or a complying superannuation scheme, or an exempt employer scheme). The minimum rate is 4% income from 1 July 2007 to 31 March 2009 and 2% from 1 April 2009.
- be a first home buyer (or a previous home owner in a similar financial position to a first home buyer)
- be buying a house within the regional house price caps (see below)
- have a household income within the income caps (see below)
- live in the house for at least six months
*Definition of contributions
What constitutes a regular contribution varies according to employment type:
- wage and salary earners must contribute at least monthly and self employed people must contribute at least annually over the qualifying period
- where a person has been earning a combination of salary, wage or self-employment income, a combination of the above approaches will be used to confirm regular contributions over the qualifying period
- non-earners will be eligible for the deposit subsidy if they make an annual contribution equating to at least the minimum rate (outlined above) of the minimum annual wage over the qualifying period
- beneficiaries will be eligible for the deposit subsidy if they make an annual contribution equating to at least the minimum rate (outlined above) of their gross benefit over the qualifying period.
Regional house price caps
The house price caps are $400,000 for Auckland City, North Shore City, Rodney District, Wellington City and Queenstown Lakes District and $300,000 for all other areas. Manukau City, Waitakere City, Franklin District and Papakura District are considered ‘other areas’.
The new Auckland boundaries and new Auckland Council does not take effect until 1 November 2010. HNZC has indicated that the house price caps will be reviewed then.
Household income caps
Must have a combined yearly income of $100,000 or less (before tax) for one or two buyers; or
Must have a combined yearly income of $140,000 or less (before tax) for three or more buyers.
Evidence required supporting the HNZC Application:
You will generally* be required to supply:
- Proof of income for the past 52 weeks;
- Proof of contributions to KiwiSaver scheme;
- Identification; Photocopy of passport or birth certificate;
- A copy of the sale and purchase agreement, which clearly shows you as the purchaser;
* Evidence may differ if you are self-employed or a non-earner or beneficiary.