The Benefits of Using KiwiSaver for Home Purchase

While KiwiSaver is primarily designed for retirement, it also allows eligible first home buyers to withdraw their funds and use them as a deposit for a property. In New Zealand, that’s relatively straightforward. But when it comes to buying your first home in Australia, things work a little differently. You’ll need to transfer your KiwiSaver balance into an Australian super fund, and then access those savings through the First Home Super Saver (FHSS) Scheme.

Even if you already own a home in New Zealand, you can still apply for the Australian First Home Super Saver (FHSS) scheme to purchase your first home in Australia. Good mortgage brokers go much much further than getting you a sharp interest rate, often that's not even in the top five reasons why to use one.

The FHSS scheme is managed by the Australian Tax Office (ATO).

This content is for educational purposes only and does not constitute financial advice. Please consult a licensed professional before making any financial decisions.

First Home Super Scheme (FHSS)

Top tip: Get started early - it’s a big move, so do the research and get engaged to set yourself up for success.

Important Considerations for New Zealanders Buying in Australia

Good news! As a Kiwi, you may be eligible for Australian first home buyer schemes even if you already own a home in New Zealand.

Because Kiwis are granted permanent residency upon arrival, you can:

• ✅ Access Australian first home buyer grants and concessions (state-dependent)
• ✅ Stack multiple benefits, including FHSS scheme eligibility
• ✅ Refinance property in NZ to assist with your Australian purchase

Top tip: It's a unique position that Kiwis can take advantage of, and not one many are aware of.

Home Loan Concessions and Grants for First Home Buyers in Australia

🔍  Real scenario: $65k+ of governement concessions buying a $750K Apartment purchase in Neutral Bay, Sydney NSW

What is KiwiSaver?

KiwiSaver is a voluntary savings initiative, established by the government in 2007 to help New Zealanders save for retirement.

To enrol, you must either be a New Zealand citizen or hold a visa which allows you to stay indefinitely, and you must be living in New Zealand most of the time. The process of opting in and making contributions varies slightly, depending on how old you are, and your working situation.

But as you are already here, you know this and are looking to use it here.

Can I Use My KiwiSaver to Buy a House in Australia?

Yes - but not directly. You can’t use KiwiSaver in the same way you would in NZ. Instead:

• You’ll need to transfer your KiwiSaver to an Australian super fund that accepts such transfers.
• That fund must be a QROPS-compliant fund (Qualifying Recognised Overseas Pension Scheme).

Common QROPS-compliant Australian super funds include:

• Brighter Super
  Brighter Super Kiwisaver transfers
• First Super
  First Super Kiwisaver transfers‍
• Telstra Super
  Telstra Super Kiwisaver transfers
• Verve Super
  Verve Super Kiwisaver transfers

Once transferred, your KiwiSaver becomes part of your Aussie super and can then be accessed under the FHSS scheme. Note: Always check that your chosen fund remains QROPS-compliant at the time of transfer.

Top tip: It takes approximately between two to six weeks from when your KiwiSaver fund receives all the correct documentation. Banks preapprovals last three months and can be extended for another three months so get started early to reduce stress.

Understanding the FHSS Scheme and Transferring Your KiwiSaver

The First Home Super Saver (FHSS) Scheme allows eligible first home buyers in Australia to withdraw voluntary contributions from their super to help with a home deposit. For New Zealanders transferring their KiwiSaver, this can be a powerful way to unlock your savings and take that first step into the Australian property market.

Here’s how it works:

• Your transferred KiwiSaver is treated as a voluntary after-tax contribution, up to $15,000
• You can access up to $15,000 per financial year, and up to $50,000 total through the FHSS scheme
• If you want to access more than $15,000, you’ll need to make additional voluntary contributions into your Australian super fund after the transfer
• The funds must be used to purchase your first home, which must be your principal place of residence
• You will need to apply to the Australian Tax Office (ATO) to release the funds

To be eligible for the FHSS and KiwiSaver transfer:

• You must have been a KiwiSaver member for at least 3 years
• You must transfer your entire KiwiSaver balance. Partial transfers are not permitted
• Your Australian super fund must be QROPS-compliant
• You must intend to live in the property you are purchasing

How Long Does the Transfer Take?

Transferring your KiwiSaver to Australia typically takes two to six weeks, starting from when your KiwiSaver provider receives all the correct paperwork.

Here’s what to expect:

• Your KiwiSaver fund will process the transfer and notify you once it is sent to your nominated Australian super fund
• The money will arrive in Australia and be converted into Australian dollars
• It will be allocated to your super account, which usually takes a few business days
• Investment earnings will be backdated to the date your Australian super fund receives the transfer
• You will receive a confirmation letter once the funds are in your account

Your KiwiSaver is now held in your Australian super account in Australian dollars.

💬 Need help making the move? You can start right here with a Kiwi mortgage expert. Get started now - takes two minutes

How Much Can You Transfer?

When moving your KiwiSaver to Australia, you must transfer the full balance. It is considered a personal after-tax contribution under Australian super law.

Contribution caps to keep in mind:

• The personal after-tax (non-concessional) contribution limit is AUD $120,000 per financial year
• Under the Bring Forward rule, you may be able to transfer up to AUD $360,000 in one transaction, which counts as using your next three years of contribution limits
• If you use this rule, you won’t be able to make further non-concessional contributions for the following two financial years

Exceeding these limits can result in excess contributions tax, so it’s important to plan ahead and get professional advice before initiating the transfer.

As always, this is not financial advice. All content is educational only. Please seek professional advice from an accountant.

Navigating the Australian Real Estate Market

Australia's property market can be fast-paced and competitive, particularly in capital cities like Sydney, Melbourne, and Brisbane. Here's how to stay ahead:

• Research suburbs: Use tools like Domain and Realestate.com.au
• Attend open homes: Start early, even before you're ready to buy
• Understand local trends: Price movements, vacancy rates, and auction clearance rates can impact your offer strategy
• Get a buyer’s agent or advocate if you're unsure, especially for interstate or remote purchases

For more practical guidance, check out our related articles:

• ‍How to Get the Best Home Loan: What Australian Lenders Look For
• ‍Tax-Effective Structures for Property Investment in Australia‍
• Mortgage Calculator Guide for Aussie Homebuyers

Tips for First-Time Home Buyers

1. Getting Your Deposit Together

Aim for a 20% deposit. This can be made up of:

• KiwiSaver savings
• Personal savings
• Gifts or inheritances
• Guarantors (often a parent)
• Refinancing NZ property if possible

Can’t reach 20%? No problem. We can investigate grants and concessions to help you get into the market safely and securely. Worst case scenario is that LMI (Lenders Mortgage Insurance) may apply, but we can help minimise impact.

Home Loan Concessions and Grants for First Home Buyers in Australia

2. Build Your Team

Once your deposit is sorted, speak with a mortgage adviser especially one who understands the Kiwi-Aussie crossover. They can guide you through the Australian system and coach you on how to get set up correctly, including:

• Compare over 50 lenders
• Secure pre-approvals
• Explain all costs (including stamp duty and LMI)

Why use a Mortgage Broker?

3. Understand What You Want in a Property

Get nosey. Visit open homes. Think about:

• Location
• Views
• Renovation potential vs turnkey
• Proximity to transport, schools, work

Being clear on your priorities will make it easier to make the right decision quickly when the time comes.

Five Things to Check Before Buying a Home

4. Build a Buffer

Stamp duty is the big one which is around 5% of the property cost. There are concessions but its often payable. Additionally, unexpected costs come up - legal fees, moving costs, property inspections. It’s wise to have at least $5,000 to $10,000 set aside on top of your deposit. More is always better here.

Stamp Duty Calculator

5. Know the Timeline

A standard property settlement in Australia is 30 to 90 days. Knowing this can help you line up your KiwiSaver transfer and FHSS release in time.

6. Check Your Credit Score

If you're applying with an Australian lender, your credit score matters. Make sure there are no surprises by requesting a copy early.

How to Get the Best Home Loan: What Australian Lenders Look For

7. Understand Loan Types

Interest-only, principal and interest, fixed, variable: Each loan type has pros and cons. Good mortgage advisers will guide you through what suits your plan best and save you money, structure you correctly and get you where you need to go.

What makes a mortgage broker great?

8. Use Professional Support

Your mortgage broker, accountant, solicitor, and buyer’s agent each play a role. Having the right team can mean a faster, smoother purchase.

Lawyers vs. Conveyancers: Who’s best positioned to have your back in Property Deals?

Frequently Asked Questions

Can I only transfer part of my KiwiSaver? No, if you're moving to Australia permanently, you must transfer your entire KiwiSaver balance to an Australian super fund that accepts transfers. Partial transfers aren’t allowed.

What if I already own a property in New Zealand? You may still qualify under the First Home Super Saver (FHSS) scheme in Australia, as long as you haven't previously owned property in Australia. Owning property in NZ doesn’t automatically disqualify you, but you must meet the Australian first home buyer criteria.

How long does it take to get finance approved?
It depends on both the lender and your personal situation. Some lenders can issue approval within 24 hours, while others may take 10 business days or more. The key is to start early and have a professional on your side to guide the process, avoid delays, and ensure your application is strong from the start.

Do I need FIRB approval? No. New Zealand citizens are exempt but please double check as always.

What happens if I transfer too much KiwiSaver? You may trigger excess contribution tax. Stick to the AUD $120,000 yearly limit unless using the Bring Forward rule and seek professional advice.

Will my KiwiSaver transfer earn returns in Australia? Yes, once it's in your Aussie super fund, it will be invested and accrue earnings based on your chosen investment option.

Final Thoughts and Next Steps

Buying your first home in Australia as a Kiwi might seem complicated at first, but it becomes much clearer once you understand how your KiwiSaver and the FHSS scheme work together. With the right structure, clear planning, and a bit of support, it's entirely possible to make the move and secure your place in the Australian property market.

Let’s make it happen.

As a fellow Kiwi from Wellington who’s made Australia home, I know what it’s like to start fresh in a new country. Along the way, I’ve naturalised, built a property portfolio across three states, and developed a strong network of trusted professionals to support your journey. Having someone who’s already walked the path makes a real difference.

Based in Manly on Sydney’s Northern Beaches, I work with clients across Australia. I can help you see around corners, get up to speed faster, and learn from both the wins and mistakes of someone who’s done it before.

💬 Need help making the move? You can start right here with a Kiwi mortgage expert. Get started now - takes two minutes

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