Second Chance KiwiSaver Withdrawal

14 Oct 2025

If you have previously owned property in New Zealand and now find yourself back in the property market, you may be wondering whether or not your KiwiSaver can be accessed to help with the purchase. The good news is, yes it is possible, under certain conditions. This is often referred to as a “second chance KiwiSaver withdrawal”.

Are you a qualifying previous home owner?

To qualify for this scheme, you will essentially need to establish that you are in the same financial position as a first home buyer, despite previously owning property in New Zealand. In order to establish this position, you will need to meet the following criteria:

• You have not previously withdrawn your KiwiSaver funds to buy a home
• You have been a member of KiwiSaver for at least three years
• You have previously owned property, but no longer own any interest/share in property (this does not include ownership of Māori land)
• You are in a similar financial position to a first home buyer, as assessed by Kainga Ora in that you do not have realisable assets totalling more than 20% of the house price cap for an existing/older property in the area that you are looking to buy in. Realisable assets considered by Kainga Ora are as follows:
  • Money in bank accounts (including fixed and term deposits)
  • Shares, stocks and bonds
  • Investments in banks or financial institutions
  • Building society shares
  • Any money paid to, or held by, the real estate agent or solicitor as a deposit on the property
  • A boat or caravan (if the value is over $5,000)
  • Additional vehicles (such as classic motorbikes or cars – not being used as your usual method of transport)
  • Other individual assets valued over $5,000

The process

1. Apply to Kainga Ora: you will need to complete the following form application started and submit to Kainga Ora.
2. Get confirmation – if approved you will receive a letter from Kainga Ora confirming your eligibility to the scheme.
3. Apply to your KiwiSaver provider – you will need to submit your letter from Kainga Ora together with your usual application.
4. Funds are released – once approved, your KiwiSaver provider will authorise the release of funds to your solicitor’s trust account.

So the good news is, being a previous homeowner may not prohibit you from using your KiwiSaver, particularly where your financial situation has changed. Contact the Martelli McKegg Property Team today to determine your eligibility.