Consider KiwiSaver part of your arsenal when buying a first home—you can use your savings to build your deposit.
The only catch is you need to have saved for at least three years and leave $1000 behind. The great thing is you can use both your contributions and your employer’s towards funding the purchase of your first home, as well as the Government’s year tax credit of $521.43. When you combine the power of two KiwiSaver funds, it can make it that much easier to get into your first home.
Here are our tips to get the most from KiwiSaver:
- The earlier you start saving, the better—as soon as you start work make the minimum 3 percent contribution.
- As your circumstances change, consider increasing your contribution—up to 8 percent can go into your KiwiSaver fund, this can be changed as frequently as every three months.
- Investigate the best option for you—don’t settle for the default. Some schemes are more ‘aggressive’ than others, and if you’re playing a long game, this could pay off in the years to come.
- If you’re self-employed make sure you put in the minimum amount—employed or self-employed, each year you need to deposit $1,042.86 to qualify for the Government Tax Credit.