Yes, you can use your KiwiSaver first home withdrawal for a house and land package, an off-the-plan home, a new build or land to build your first home on. The eligibility rules and the application process are the same as for an existing home. What differs is what the money can pay for and when it is paid, and both depend on how the purchase is structured.
The rest of the KiwiSaver first home guides are on the KiwiSaver first home hub.
Does the Property Type Change the Rules?
No. Whether you buy an existing home, a new build, a house and land package, an off-the-plan home or land to build on, you need to meet the same criteria, which are set out in full in the first home withdrawal eligibility guide. The application process is also the same: your provider’s form, the signed agreement, your supporting documents and payment to your solicitor’s trust account, as described in the first home withdrawal guide.
What Is a House and Land Package?
A house and land package is a section plus a new house, usually bought from a developer or building company. It can be structured in two ways:
- two contracts: a sale and purchase agreement for the land and a separate build contract with the builder
- one contract where settlement doesn’t take place until the build is finished and the code compliance certificate is issued.
Buying Land With KiwiSaver
You can use a first home withdrawal to buy land if you intend to build a home on it and live there. Three limits apply:
- The withdrawal pays for the land only. It can’t be used for the build.
- You get one withdrawal. You can’t withdraw for the land deposit and come back later for the build, and money withdrawn for the land can’t be kept and put toward the build contract once the land purchase has settled.
- Land you already own doesn’t qualify. You can’t use a withdrawal to pay for building on land you already own, however you became the owner (including land you were gifted or inherited). Owning land also counts as previous property ownership for the eligibility test.
So with a two-contract package, the KiwiSaver money goes to the land purchase. With a one-contract package that settles on completion, it is paid at that settlement.
Timing of the Withdrawal
For an existing home, the withdrawal is paid shortly before a settlement date set when you sign. For a package or off-the-plan purchase that settles on completion, settlement may be many months away, and the build can run late.
This means your KiwiSaver balance keeps changing with contributions and market movements through the build. Your provider pays the value of your units when it processes the withdrawal, not the balance on the day you signed. How fund types differ in how much they move is in KiwiSaver fund types explained.
Providers ask for your complete application a set time before the payment date (MAS, for example, asks for it at least 10 business days before, and Fisher Funds at least 15 working days before settlement), so the application still needs to go in well before the settlement date. The KiwiSaver first home withdrawal timeline has the steps in order.
The Three-Year Clock
Eligibility is checked when the withdrawal is made, not when you sign. If your three-year KiwiSaver anniversary falls before the expected settlement, a long build doesn’t cause a problem. If it falls after settlement, you would not be eligible at that settlement. Check the dates with your solicitor before you sign.
Off-the-Plan Purchases
Buying off the plan (a home that hasn’t been built yet) adds uncertainty:
- The settlement date is uncertain and the build may take a long time or be delayed.
- You must still meet every criterion at settlement, not just when you sign.
- Your balance and market conditions can change a lot over a long build.
Tell your KiwiSaver provider early that you are buying off the plan so you know what it will need and when.
Progress Payments and Deposits to the Builder
Some build contracts require progress payments at stages of construction. Because the withdrawal can’t pay for the build, KiwiSaver can’t be used for progress payments; they need to come from savings or construction lending. Ask your solicitor to confirm, before you sign, exactly which payment the KiwiSaver money will go toward.
House Price Caps
The KiwiSaver withdrawal has no house price cap. If you are also using the First Home Loan, its rules (including for new builds) are in the First Home Loan guide. New builds used to attract a higher First Home Grant, but the grant closed to new applications on 22 May 2024 (what happened to the grant).
Practical Steps
- Check your KiwiSaver eligibility, especially your three-year date against the expected settlement.
- Get mortgage pre-approval, including construction lending if the build is a separate contract.
- Have your solicitor review the contract(s) before you sign: the payment schedule, sunset clauses and when title transfers.
- Include conditions, at least a finance condition.
- Apply for the withdrawal in time for the payment it is going toward (the land settlement, or settlement on completion).
- Allow your provider’s lead time (commonly 10 to 15 working days before the payment date) for it to process and pay.
Risks Specific to Packages and New Builds
| Risk | What to check |
|---|---|
| Builder becomes insolvent during the build | Any build guarantee, and your solicitor’s review of the contract |
| Settlement delayed beyond the contract date | Sunset clauses; legal advice |
| KiwiSaver balance falls before the withdrawal | Your balance moves with your fund until it is paid (fund types explained) |
| Value on completion below the purchase price | An independent valuation; comparable sales |
Frequently Asked Questions
Can I use KiwiSaver to buy land only and build later?
Yes, if you intend to build a home you will live in. The withdrawal pays for the land only, and you can’t make a second withdrawal for the build.
What if the build is delayed and settlement moves?
The withdrawal is made for the actual settlement, and eligibility is assessed then. Tell your provider about the new date.
Can both people in a couple withdraw KiwiSaver for a house and land package?
Yes. Each eligible member makes their own withdrawal, as for any first home.
Is there a minimum or maximum price under KiwiSaver?
No. The KiwiSaver withdrawal has no price floor or ceiling.
What to Read Next
- KiwiSaver First Home Withdrawal Guide: how to apply
- KiwiSaver First Home Withdrawal Timeline: when to apply, with a checklist
- KiwiSaver House Deposit Guide: how much you can withdraw
- First Home Withdrawal Eligibility: full eligibility rules