Siblings can combine funds for home

QCanwha¯naucombine Kiwisavers when purchasing a home together like a husband and wife can? For example, can son and mum combine, or multiple wha¯ nau who may be purchasing together? And am I able to gift my Kiwisaver to my son for his papaka¯ inga whare?

AUsing Kiwisaver for a First Home is a great way to get on the property ladder and is one of the easier ways to withdraw your money (all but $1000) before age 65. It can also be used for a papaka¯ inga whare.

Papaka¯ inga is a group of houses on whenua Ma¯ ori as a ‘community’ which may include broader support and occupant involvement. The process is supported by Te Puni

Ko¯ kiri — the Government’s principal policy adviser on Ma¯ ori wellbeing and development.

Kiwibank and Housing New Zealand joined forces in 2010 to create ‘ka¯ inga whenua loans’. To qualify for the loan, Kiwibank has specific criteria that need to be met. The difference between a kainga whenua loan and a mortgage is that the loan is secured against the house as opposed to the house and land.

Papaka¯ inga is becoming an increasingly popular option for many wha¯ nau. A National Ma¯ ori Housing Conference was held at Waipatu Marae in Hawke’s Bay in February 2021. Nga¯ ti Kahungunu iwi chair Ngahiwi Tomoana said they wanted to reduce the barriers and inequities that Ma¯ ori faced to achieve their housing aspirations. Minister for

Ma¯ ori Development Willie Jackson said the Government was committed to delivering houses for Ma¯ ori on their whenua and was aiming to “ramp up” papaka¯ inga housing.

If buyers are eligible for a First Home withdrawal, they should apply through their Kiwisaver provider. Each person must submit their own application. If any have previously owned property, they must apply through Ka¯ inga Ora as a ‘Second Chance’ purchaser.

I put your first question to a spokesperson at Ka¯ inga Ora and they replied: “Yes, as an example, two siblings could both withdraw their Kiwisaver funds to buy a property together, you don’t have to be a ‘couple’. Both their names will have to appear on the title.”

Is there a limit on the number of buyers of a property? No, as long as all buyers’ names are on the Agreement for Sale and Purchase, you can have multiple buyers who may all be using their Kiwisaver funds to help them into their first home.

Aside from the Kiwisaver withdrawal, you may also qualify for the First Home grant. This is managed through Ka¯ inga Ora, and you can check their website to establish eligibility. There is no limit to the number of buyers of a property who may also apply for the First Home grant, but the income limit for all buyers combined can be no more than $150,000 per annum and there is a price cap on the home. The First Home grant pays each qualifying applicant up to $5000 for an existing home or $10,000 for a new build, if they have been paying 3 per cent or more into their Kiwisaver for at least five years.

Regarding your last question, no you can’t gift your Kiwisaver to someone for a First Home. This would effectively be a withdrawal, and the only conditions for early withdrawal are buying a First Home for yourself, Significant Financial Hardship, Serious Illness or Permanent Emigration. The only opportunity would be if you were over 65 and had access to your savings. Then you can spend the money in any way you choose.

Shelley Hanna is a Financial

Adviser with Peak Portfolio Management Ltd which holds a licence FSP702451 issued by the Financial Markets Authority to provide financial advice services. Disclosure information at www.peak.net.nz or call 06 8703838. The information provided in this article is of a general nature and should not be relied on as a recommendation to invest in a financial product. Send your Kiwisaver questions to shelley. hanna@peak.net.nz