Buying your first home is a big milestone, and if you’re a New Zealand citizen living in Australia, you might be wondering if you can use Kiwisaver to buy a house in Australia. KiwiSaver is a New Zealand retirement savings scheme that normally locks away your money until you turn 65. But it offers special early access options in certain cases – like helping you buy your first home.
In this comprehensive guide, we’ll break down everything you need to know about KiwiSaver and homeownership for New Zealanders in Australia. We’ll explore how KiwiSaver works and what benefits it normally provides first-home buyers in NZ, then tackle whether those benefits extend to buying property on Australian soil. We’ll look at the official rules (and myths) around using KiwiSaver for overseas property and explain what alternative pathways NZ citizens have to achieve homeownership in Australia. We will also show you how working with an expert mortgage broker in Brisbane can help you get the best home loan.
Let’s dive in!
Understanding KiwiSaver and Its Home Purchase Benefits
Before we get into Australia-specific details, let’s cover the basics of KiwiSaver and how it helps first-home buyers in New Zealand. This will give us a foundation to understand what changes (if any) when you’re in Australia.
What is KiwiSaver?
KiwiSaver is a voluntary, work-based savings scheme set up by the New Zealand government to help people save for retirement. If you’re working in NZ, a small percentage of your pay, usually 3%, gets put into your KiwiSaver account, and your employer also contributes at least 3% on top. The government used to chip in a $1,000 kick-start for new KiwiSaver members, but that ended in 2015. It does still provide an annual member tax credit – basically, a bonus of up to NZ$521 each year if you contribute at least $1,042 yourself. Over time, these contributions add up in your KiwiSaver fund, which is typically invested in things like shares and bonds to grow your savings.
Normally, KiwiSaver funds are locked in until you reach the NZ retirement age (currently 65). However, there are some limited circumstances where you can withdraw early. One of those special cases is buying your first home. The idea is to let people put their retirement savings toward getting on the property ladder since owning a home is a big part of long-term financial security.
KiwiSaver's Benefits for First-Home Buyers in NZ
In New Zealand, KiwiSaver has become a key tool for young people saving a house deposit. After you’ve been in KiwiSaver for at least three years, you become eligible to withdraw most of your KiwiSaver balance to put towards buying your first home. This can include the money you’ve contributed, your employer’s contributions, any investment returns, and even the annual government contributions (tax credits) that have been added to your account. Essentially, almost all of your KiwiSaver savings can be pulled out to help buy your first home, which can significantly boost your deposit. The only requirement is you must leave a minimum of $1,000 in your KiwiSaver account – you can’t completely empty it out.
To use KiwiSaver for a first home in NZ, you also need to meet some conditions:
- First-home buyer requirement: You generally must be a genuine first-home buyer. That means you’ve never owned a home or land before. There is a provision for a “second chance” if you’ve previously owned property, but your financial situation is now similar to that of a first-home buyer. In that case, you can apply to Kāinga Ora for consideration as a qualifying previous homeowner. But for most people, it’s strictly first-home only.
- Minimum membership period: As mentioned, you need to have been a KiwiSaver member for at least 3 years.
- Intend to live in the property: The home you’re buying must be intended as your principal place of residence. KiwiSaver withdrawals aren’t meant to buy an investment property you’ll rent out. You’re expected to live in the house yourself, at least for a period of time. If you’re an NZ citizen living overseas and buying in NZ, you’d need to actually move into that home – more on this nuance later.
- Property location: Importantly, the property typically has to be in New Zealand. KiwiSaver’s first-home withdrawal is designed to help you buy a home on NZ soil, and we’ll examine what that means for those of you eyeing houses in Australia in the next section.
- Leave $1,000 in the account: You must keep a small balance in your KiwiSaver. At least $1,000 must remain after withdrawal.
- One-time use: You can only use the KiwiSaver first-home withdrawal once. It’s a one-and-done deal for your first home purchase.
To actually withdraw the money, you’d apply through your KiwiSaver provider, which typically involves a solicitor in NZ. The funds usually get paid out at settlement into your solicitor’s trust account to be used for the purchase.
KiwiSaver First Home Grant
In addition to withdrawing your own KiwiSaver savings, NZ has another perk for eligible first-home buyers: the First Home Grant (formerly known as the HomeStart grant). This is not part of your KiwiSaver account but is a government grant administered by Kāinga Ora (Housing New Zealand). If you’ve been contributing to KiwiSaver for at least 3 years and your income and the house price fall under certain caps, the government might give you a grant to boost your purchase:
- NZ$3,000 to $5,000 per person for buying an existing older home. The exact amount depends on how many years you’ve contributed – it’s $1,000 per year of KiwiSaver membership for up to 5 years.
- NZ$6,000 to $10,000 per person for buying a brand new home or building a new house. It’s $2,000 per year for up to 5 years.
A couple who both qualify could potentially get up to NZD 20,000 free from the government for a new build, which is a nice supplement to their deposit. However, these grants only apply to buying homes in New Zealand – they can’t be used for a purchase in Australia. We mention them here to illustrate how KiwiSaver incentivises first-home ownership in NZ and what Kiwi buyers give up if they purchase abroad.
Can You Use KiwiSaver to Buy a House in Australia?
Now, to the crux of the matter: if you’re a Kiwi in Australia, can you use your KiwiSaver savings to purchase a house there? The answer is a bit complicated, so let’s break it down clearly.
Official Rules on KiwiSaver Withdrawals for Overseas Property
Under current rules, you cannot directly use KiwiSaver funds to buy a house in Australia using the KiwiSaver first-home withdrawal provision. KiwiSaver’s first-home withdrawal is essentially limited to New Zealand properties. In fact, a law change in 2015 explicitly shut the door on using KiwiSaver for property purchases outside New Zealand. Before 2015, a few Kiwis managed to withdraw KiwiSaver for Australian homes under certain provider policies, but this loophole was closed. The Taxation Act of 2015 boosted KiwiSaver first-home benefits by allowing member tax credits to be used for a first home and increasing the NZ grant for new builds. But it also added a requirement that the house being bought with KiwiSaver funds be within New Zealand.
What does this mean for you? It means that if you try to apply to your KiwiSaver provider for a “first home withdrawal” to buy a property in Australia, your application will be declined. The first-home withdrawal benefit applies only to NZ real estate. KiwiSaver providers will insist on seeing a sale and purchase agreement for a New Zealand property and typically proof that you’ll occupy it before releasing funds.
To put it plainly, you cannot use KiwiSaver to buy a house in Australia the same way you could for a New Zealand house. It doesn’t matter that you’re a New Zealand citizen or that it’s your first home – the property’s location is what matters.
Key Restrictions and Common Misconceptions
This rule often comes as a surprise to Kiwis who have moved to Australia. Let’s address a few common misconceptions and questions:
I've moved to Australia permanently, so can't I just withdraw my KiwiSaver anyway?
Many people think that leaving NZ for good means they can take their retirement savings with them in cash. It’s true that if you emigrate after one year abroad, you can apply to withdraw your KiwiSaver funds minus the government’s contributions. However, Australia is treated differently. There is a special Trans-Tasman arrangement: if you move to Australia, you are not allowed to cash out your KiwiSaver after a year. Instead, you have the option to transfer your KiwiSaver into an Australian superannuation fund. In short, moving to Australia doesn’t let you break open the KiwiSaver piggy bank – you either leave the money in KiwiSaver or shift it into Australia’s super system.
But I heard of someone who used KiwiSaver for a house in Australia a few years ago?
That may have been possible pre-2015 or via specific providers who bent the rules, but it’s no longer possible today. Before 2015, some KiwiSaver providers did allow withdrawals for overseas first homes, though it was rare and required extra hoops, like involving lawyers in both countries to handle the money. Since the rule change, providers cannot approve such requests. Any stories of success are from prior years or special cases that are not replicable under current law.
Can I use KiwiSaver if I buy a house in NZ while living in Australia?
Technically, yes, only if you are buying a property in New Zealand and intend to move into it as your principal residence. For example, say you plan to return to NZ and purchase a house there; you could be eligible for a KiwiSaver first-home withdrawal for that NZ property, even if you’ve been living in Australia. But you need to move into it pretty much immediately after purchase for it to qualify. However, if you plan to remain in Australia, using KiwiSaver to buy a house back in NZ that you won’t occupy wouldn’t be allowed. That would effectively be an investment property from KiwiSaver’s perspective, which is a no-no.
Maybe I can just withdraw my KiwiSaver on the sly and then use the cash for a house in Australia?
Unfortunately not. KiwiSaver withdrawals for a first home have a clear process: the money goes to your solicitor’s trust account and must be used at settlement for that property. You can’t withdraw it to your personal account for any old purpose. If the purchase falls through, the money actually gets returned to the KiwiSaver fund. So there’s no way to game the system by withdrawing for a “fake” NZ house purchase and then redirecting the money to Australia – providers require documentation of a legitimate NZ property transaction.
Australian super can't be used for a house deposit, so transferring KiwiSaver won't help, right?
It’s true that, unlike KiwiSaver, Australian superannuation is generally locked away until retirement and doesn’t automatically offer a first-home withdrawal option. However, Australia has its own scheme called the First Home Super Saver Scheme (FHSSS) that allows first-home buyers to access voluntary super contributions for a home deposit. If you transfer your KiwiSaver into an Australian super fund, that money can count as voluntary contributions, which can later be withdrawn under the FHSSS to help buy a home in Australia.
In other words, while you can’t use KiwiSaver directly, transferring it and then leveraging Australia’s system is a possible route to get at least some of that money for your deposit.
What Options Do NZ Citizens Have To Use KiwiSaver For An Australian Home?
By now, it’s clear that you can’t simply fill out a form and pull your KiwiSaver money to buy a house in Sydney, Melbourne, Brisbane, or anywhere in Australia. So what can you do, especially if you have a decent chunk of savings sitting in KiwiSaver? Here are your main options:
1. Leave KiwiSaver as is (and use other funds for your house)
The simplest, if not most satisfying, option is to just leave your KiwiSaver money in New Zealand. It will remain invested, ideally growing for your retirement. When you eventually reach retirement age or move back to NZ, you can access it then. In the meantime, you would rely on other savings in Australia for your home deposit. Essentially, you treat your KiwiSaver like a long-term untouchable asset and proceed with buying a home as if KiwiSaver didn’t exist. (We’ll talk in the next section about how to build a deposit without KiwiSaver.)
2. Transfer your KiwiSaver to an Australian super fund
If you’re committed to building your life in Australia, you might consider moving your KiwiSaver into Australia’s superannuation system. New Zealand and Australia have a reciprocal Trans-Tasman Portability agreement that lets you transfer the full balance of your KiwiSaver to certain Australian-complying super funds when you emigrate. According to NZ’s Inland Revenue, if you move permanently to Australia, you can arrange to transfer your KiwiSaver savings into an Australian super scheme. You are not forced to transfer. It’s an option.
- To do this, you must have moved to Australia and be living there. You choose an Australian super fund that accepts KiwiSaver transfers. As of now, a limited number of companies like First Super and TelstraSuper in Australia actively facilitate KiwiSaver roll-ins. You then ask your KiwiSaver provider to transfer the balance over.
- You have to transfer the entire balance of your KiwiSaver account – partial transfers aren’t allowed. This includes all your contributions, employer contributions, and any government contributions in the account. The money will be converted into Australian dollars and land in your superannuation account.
- There’s no tax on the transfer itself. Moving your retirement savings across the Tasman is tax-free in both countries.
- Once your savings are in an Australian super fund, they become subject to Australian rules. You generally can’t withdraw them until you reach retirement age in Australia (usually 60). However, you can use a scheme like the First Home Super Saver Scheme to withdraw some for a home deposit. So you haven’t made the money immediately accessible, but you’ve put it in a system where, as a first-home buyer in Australia, you might unlock a portion of it early.
3. Withdraw KiwiSaver after moving to a non-Australian country
This option is more of a theoretical loophole and not practical for most. If, for example, you had moved to the UK or somewhere else instead of Australia after one year abroad, you could apply to withdraw your KiwiSaver in full (except for the government’s annual credits). Some people wonder if they can use this as a workaround. For example, leave NZ, wait a year as a non-resident, get the money out in cash, and then go to Australia with that cash to buy a house. Technically, if you’re no longer a NZ resident and a year passes, you become eligible for a permanent emigration withdrawal. But doing this purely to unlock KiwiSaver early is risky and against the spirit of the rules. Plus, as soon as you move to Australia, the special Trans-Tasman rules kick in, meaning you should transfer to Aussie Super, not withdraw. In short, don’t bank on a loophole like “convert to cash via another country” – it’s not a reliable or advisable path.
4. Use KiwiSaver to buy in NZ, then leverage that equity in Australia
A less direct strategy some consider is buying a house in NZ using your KiwiSaver, perhaps renting it out or holding it, and later using the equity or sale proceeds to buy in Australia. This would involve actually moving back to NZ long enough to qualify for the withdrawal. It’s a complex, long-term play that is generally not practical unless you truly want to move home. For most people who have settled in Australia, this isn’t a viable or desirable option – but it’s technically an avenue where KiwiSaver helps you, just not while you’re in Australia.
Most Kiwi expats in Australia will be looking at options 1 or 2. Either you accept KiwiSaver is off-limits for now, or you bring it into the Aussie system via a transfer. If you choose the transfer route, the next logical step is using Australia’s First Home Super Saver Scheme to access those funds for your deposit.
Case Study: Using KiwiSaver (Indirectly) To Buy in Brisbane
James and Aroha are a married couple from Auckland. In their late 20s, they decided to move to Brisbane for work opportunities. After renting for two years and with their first baby on the way, they were keen to buy a home. Back in NZ, they had been diligent with KiwiSaver since starting work. Together, they had about NZ$50,000 in KiwiSaver (approximately AU$46,000), which they had hoped to use for a house deposit. Initially, they were disappointed to learn they couldn’t withdraw that money to buy in Australia. On their combined Australian incomes (about $120k), saving a full deposit was going to take a while, especially with a baby and one income during maternity leave.
Their biggest hurdle was the deposit. Brisbane’s median house prices were around $600k–$700k in the areas they looked. A 20% deposit ($120k+) was out of reach. Even a 10% deposit ($60k) was hard without accessing KiwiSaver. They also were new to Australia’s buying process and nervous about taking on a large mortgage.
After talking to an expert mortgage broker, James and Aroha decided to transfer their KiwiSaver to Australia. They opened an account with an Australian super fund that accepts KiwiSaver transfers and moved their entire balance over. The transfer took a couple of months, but soon, their KiwiSaver money was in their Australian super accounts. Next, they took advantage of the First Home Super Saver Scheme. They classified a large portion of that transferred money as “voluntary contributions” and applied to withdraw it under FHSSS. They had also been adding extra contributions from their Australian salaries into super for a year once they learned about FHSSS. By the time they were ready to buy, they withdrew about $50,000 (combined) under the scheme. This was the maximum they were allowed to release for their deposit. This gave them a big chunk of cash for their deposit. Meanwhile, they had also saved about $15k in a normal savings account over those two years in Australia.
With these funds, they then applied for a home loan. Their broker suggested using the First Home Guarantee since they now had around 8% of the purchase price as a deposit after combining all sources. Under the guarantee, 8% was enough. They ended up purchasing a $670,000 house in the suburbs of Brisbane with a child-friendly backyard – exactly what they wanted. The government guarantee meant they could borrow about 92% of the price without LMI.
How To Save For A House Deposit As A NZ Citizen In Australia.
If KiwiSaver funds are off-limits or limited for your Aussie home purchase, how else can you make your homeownership dream happen? The good news is that New Zealand citizens in Australia have essentially the same opportunities to buy a house as Australian citizens do – you just might need to rely more on local savings and mortgage options. Let’s explore some alternatives for building up a deposit and getting a home loan as a Kiwi in Australia.
Using Personal Savings and Investments to Build a Deposit
Save the old-fashioned way: Without immediate access to KiwiSaver for your deposit, you’ll likely need to save money the traditional way by regularly budgeting and setting aside part of your income. The advantage of being in Australia is that incomes can be relatively high, and you might have lower living costs depending on where you live, though cities like Sydney or Melbourne can be pricey. Make a savings plan, open a high-interest savings account or an offset account, and contribute to it every payday. Australia currently has various high-interest online savings accounts that can help your money grow a bit while you save.
Consider the First Home Super Saver (FHSS) Scheme: Even if you haven’t transferred your KiwiSaver, you can still use Australia’s FHSS scheme by making voluntary contributions from your Australian income into your superannuation. This scheme essentially lets you get some tax advantages while saving for a house deposit inside your super. For example, you could salary-sacrifice a portion of your pay into your super above the compulsory 11% your employer already pays and later withdraw those extra contributions (plus earnings) for your first home. If you’re disciplined, this can be a tax-effective way to boost your deposit savings – whether or not you also bring KiwiSaver money into the mix.
Investing to grow your deposit: Some people look at investing in shares or managed funds as a way to grow their deposit faster than a savings account. As a Kiwi in Australia, you have access to the Australian stock market, ETFs, etc. Investing can potentially yield higher returns, but remember, it comes with higher risk. The market can go down in the short term just when you need your money for a house. If your timeframe to buy is only a couple of years, be cautious with investments; you don’t want a market downturn to wipe out part of your deposit when you’re ready to purchase. However, if you have a longer timeline or extra funds, a balanced investment portfolio could supplement your savings. Some Kiwis also keep investments back in NZ while separately saving for the house in Australia. The approach you choose will depend on your risk tolerance and timeframe.
Use term deposits or other safe vehicles: If you have a chunk of money, say from selling something or an inheritance, that you know you’ll use for a house in a year or two, you might park it in a term deposit or a short-term investment fund in Australia. These can give slightly better interest than a normal savings account and are relatively low risk. It’s not very exciting, but every bit of interest earned helps your deposit keep pace with or beat inflation.
Leverage any NZ assets or windfalls: Do you still have savings in New Zealand bank accounts or perhaps other assets back home? For instance, some people might have an inheritance or proceeds from selling a car or property in NZ that they can bring over to Australia. Just be mindful of exchange rates and transfer costs. The NZ dollar (NZD) to Australian dollar (AUD) exchange rate will affect how much your NZ savings are worth in Aussie terms. Keep an eye on the rates; if the NZD strengthens against the AUD, your Kiwi money will go further in Australia (and vice versa). You might want to move money over gradually or when rates are favourable.
Family assistance: This isn’t unique to Kiwis, but it’s worth mentioning. If you have family in NZ or Australia willing to help with your deposit – whether as a gift or loan or by going guarantor – that can be a pathway, too. A guarantor home loan from an Australian bank could even eliminate the need for a cash deposit, though not everyone has this option available. If your parents in NZ want to help financially, they might need to transfer funds to Australia; there’s no restriction on that aside from standard bank transfer processes. New Zealand has no gift tax, and Australia has no gift tax, but large transfers may need an explanation for anti-money-laundering rules.
In summary, building a deposit in Australia will likely involve a combination of disciplined savings, possibly using the FHSS scheme for efficiency, and making the most of any assets or support you have. Many Kiwis find that after a few years of working in Australia, they can save a deposit thanks to steady income and lower costs outside the major cities. It may require patience if you were counting on KiwiSaver to speed things up, but it’s achievable.
Exploring Home Loan Options for NZ Citizens in Australia
One silver lining of being a New Zealander in Australia is that banks generally treat you the same as an Aussie when it comes to home loans. New Zealand citizens residing in Australia, typically on the Special Category Visa, subclass 444, are classified as local residents, not foreign investors, by most lenders. This means you have access to the standard home loan products, interest rates, and approval criteria that Australian citizens do.
Key points about home loans for NZ citizens in Australia:
- No special restrictions on borrowing: As a Kiwi, you do not need Foreign Investment Review Board (FIRB) approval to buy a home, and banks know this. You are not limited to higher deposits or lower lending limits like some other temporary visa holders might be. In fact, many lenders allow New Zealanders to borrow up to 95% of the property value. Keep in mind if you borrow more than 80% of the property value, lenders will typically require Lenders Mortgage Insurance (LMI). But the point is, being a Kiwi doesn’t force you into a bigger deposit than anyone else – you have the same borrowing potential as locals.
- Loan types and interest rates: You can access all the usual loan types – fixed rate, variable rate, split loans, packages with offset accounts, etc. The interest rates offered to you will be the normal advertised (or negotiated) rates that banks offer, based on your deposit size and financial situation. There is no ‘Kiwi citizen surcharge’ or anything like that. Essentially, if you walk into a bank with your NZ passport and proof of Australian address and income, you’ll be treated like any other Australian resident borrower.
- Documentation and ID: When applying for a loan, you’ll need to provide identification and proof of residency status. Your New Zealand passport will serve as primary ID, and the bank will likely do a VEVO check (Visa Entitlement Verification Online) to confirm you hold the Special Category Visa (444), which allows you to live and work in Australia indefinitely. This is routine – it’s similar to verifying someone’s Australian passport or permanent residency. Because NZers have an automatic right to reside, this usually isn’t a hurdle. Some lenders might ask for a copy of your Australian Medicare card or local driver’s license as additional ID, which, as a Kiwi, you’re entitled to get. Australia and NZ have a reciprocal health agreement, so NZ citizens can enrol in Medicare. Having Medicare and perhaps a local license helps establish your local status, but even without a license, your passport + visa is enough.
- Credit history and income: Banks will look at your Australian credit history and income to assess the loan. If you’ve only recently moved to Australia, you might have a thinner credit file – maybe just a few months of utility bills or a credit card if you got one. This isn’t a deal-breaker, but it means your income stability will carry a lot of weight. Typically, lenders like to see that you’ve been in your job for at least 3 to 6 months. Some want 6+ months especially if you’re newly arrived in the country. If you moved with a job transfer or have a long-term employment contract, that helps. Don’t be surprised if the lender asks about any overseas debts as well. For example, if you have an NZ student loan, it won’t show on your Australian credit report, but you should disclose it, as the monthly repayment will be considered in how much you can afford to borrow. Having an NZ student loan won’t disqualify you, but the bank will count that payment in your expense calculations.
- Deposit sources: When you apply for a loan, the bank will ask where your deposit is coming from. If you’ve saved it in Australia, that would be great. Bank statements showing a savings history will demonstrate genuine savings. If you have money coming from NZ, be prepared to document the source and explain it. Anti-money-laundering rules mean banks need to trace large deposits. Providing a paper trail such as, “This $20k came from my NZ bank account I’ve had for years. Here are the transfer receipts” – will smooth the process. Also note, if you did transfer your KiwiSaver to an Aussie super and withdrew via FHSSS, that withdrawn amount would appear as a lump sum deposit into your Australian bank account for the house purchase. You’ll want to explain to the lender that it’s FHSSS release funds, which is perfectly legitimate
- Mortgage pre-approval: Just like any first-home buyer, as a Kiwi, you can and should get a pre-approval from a lender when you’re serious about house hunting. This will tell you how much you can borrow and show agents/sellers that you’re a qualified buyer. The pre-approval process for you will be identical to that for an Australian citizen. The lender will verify your income, savings, credit, and residency status and then give conditional approval for a certain loan amount. It’s usually valid for a few months while you search for a property.
- Using a mortgage broker: If you’re unsure which bank to approach, know that many mortgage brokers in Australia are familiar with lending to NZ citizens. Qualified brokers can identify which lenders are offering good deals or have favourable policies. For instance, a few lenders might be a bit stricter with temporary visa holders, but most treat Kiwis as locals. Since you likely qualify with most lenders, a broker’s job will be to shop around for the best interest rates and terms. It can be worth it if you want to save time and ensure you get the best deal. Just make sure the broker understands the special status of NZ citizens so they don’t mistakenly treat you as a foreign investor.
How Australian Banks View NZ Citizen Borrowers
In general, Australian lenders are very comfortable lending to New Zealand citizens. You are considered as having the same standing as an Australian permanent resident. The close economic relationship between the two countries means banks don’t see Kiwi borrowers as likely to just leave and abandon loans. Kiwis have proven track records of living long-term in Australia. And because you have the right to remain in Australia indefinitely on the SCV visa, banks aren’t worried about your visa expiring or being forced to leave the country. This is a key difference between NZ citizens and other foreign nationals in Australia. For example, someone on a work visa with an expiration date might face lending restrictions or require a citizen co-borrower, but with a Kiwi, that’s not an issue.
Legally, an NZ citizen in Australia is considered a temporary resident because the SCV is technically a temporary visa. But for lending and property ownership purposes, you’re treated similarly to a permanent resident:
- You can buy existing homes without any government permission, which is normally something only citizens and permanent residents can do.
- You can access first-home buyer schemes like the First Home Owner Grant and First Home Guarantee, which are usually restricted to citizens and Permanent Residents – but they explicitly include NZ visa holders.
- Banks often even list NZ citizens in the same category as Australians in their lending policy. For instance, a bank’s guideline might say, “Australian citizens and permanent residents (including NZ citizens on subclass 444) are eligible for up to 95% loans,”
In summary, Kiwi borrowers are viewed on par with Aussie borrowers. As long as you meet the standard criteria. You shouldn’t face extra hurdles due to your nationality. This means your focus can be on the same things any first-home buyer focuses on – saving enough, finding the right property, and choosing the right loan.
One note: since NZ citizens are treated as locals, if you have a partner who is an Australian or NZ citizen, there’s no issue. If your partner is from elsewhere and only has a temporary visa, that can complicate things because their portion of the purchase might be considered foreign. In such cases, some couples buy solely in the Kiwi partner’s name to avoid foreign buyer rules. But if you’re buying solo or with another Kiwi/Aussie, you can ignore this concern.
Government Assistance for NZ Citizens in Australia
Buying a first home can be a bit easier if you take advantage of the various government assistance programs available. As a New Zealander in Australia, you’re fortunate to be eligible for most of the same first-home buyer schemes Australians can access. You are eligible for the following grants and schemes:
First Home Guarantee (Home Guarantee Scheme)
One of the most significant assistance programs is the Australian Government’s Home Guarantee Scheme (HGS), specifically the First Home Guarantee (FHG), which is targeted at first-home buyers. Under the First Home Guarantee, eligible buyers can purchase a home with as little as a 5% deposit and pay no Lenders Mortgage Insurance (LMI).
Normally, in Australia, if you have under 20% deposit, banks charge LMI (which can run into tens of thousands of dollars) to protect themselves. The First Home Guarantee has the government effectively act as a guarantor for up to 15% of the property value. So, if you have a 5% deposit, the lender is covered and waives the LMI requirement. This can save buyers a lot of money and also allow you to get into a home sooner without waiting to save a full 20%.
Are NZ citizens eligible? Yes! New Zealand citizens on the Special Category Visa (subclass 444) are explicitly eligible for the First Home Guarantee, just like Australian citizens. Previously, the scheme mostly targeted Australian citizens and permanent residents, but it was clarified in recent years that SCV holders qualify as permanent residents for this purpose. The key is that you must meet the other criteria of the scheme.
The main eligibility criteria for the First Home Guarantee are:
- You must be a first-home buyer. Generally this means you have never owned property in Australia before. Having owned a home in NZ does not automatically disqualify you from Australian schemes. The FHG looks at your Australian property ownership history. If you’ve never owned a home in Australia, you’re considered a first-home buyer here.
- Have a Deposit of at least 5%. You need at least 5% of the purchase price saved up. And it must be genuine savings or funds that are considered acceptable, which can include KiwiSaver funds released via FHSSS or even a gift from family, depending on lender policy. The scheme doesn’t give you money for the deposit – you must have 5%. But it lets you buy with 5% instead of 10% or 20%.
- There is an Income limit. As of current settings, a single applicant can have an income of up to $125,000 per year and a couple up to $200,000 combined per year. These caps are based on your previous financial year’s taxable income. If you earn above that, you won’t qualify for the scheme.
- Owner-occupier requirement: You must intend to live in the property. The scheme is not for investors. You are generally required to move into the home within a certain time, usually 6-12 months after purchase, and you cannot rent it out while under the scheme’s guarantee.
- Property price cap: The home’s purchase price must be under a certain regional cap. These caps vary by state and city. For example, in Queensland, the cap might be around $700,000 for Brisbane/Gold Coast and lower in regional areas. In New South Wales, the cap is higher in Sydney and lower in rural regions. You have to check the cap for the area you want to buy in. In many cases, the caps are generous enough to include a wide range of entry-level homes, but in very expensive cities, they may limit you to apartments or outer suburbs.
- Citizenship/residency: As mentioned, Australian citizens qualify, and NZ citizens in Australia are treated as equivalent to permanent residents for this scheme. Permanent residents from other countries must usually buy with a citizen to qualify, but NZ citizens are a special case and are included on their own.
There are a limited number of spots in the First Home Guarantee each year. Currently, 35,000 places per year are available. These tend to get filled on a first-come, first-served basis each financial year, with popular banks often allocating them quickly. If you’re interested, you usually apply through a participating lender. You can’t apply directly to the government. Most major banks and a lot of smaller lenders participate in the scheme. When you approach a bank or broker, you tell them you want to utilise the First Home Guarantee, and they will handle the application as part of your home loan process.
How does First Home Guarantee benefit Kiwis?
For many New Zealanders who move to Australia, one challenge is that your KiwiSaver was meant to be your deposit helper, and without it, you might be short of the ideal 20%. The First Home Guarantee essentially steps in to fill that gap. You might only have 5% or 8% saved – normally, you’d either need to pay costly LMI or keep renting and saving. But under this scheme, you can go ahead and buy with your smaller deposit. This scheme can easily save you anywhere from $10,000 to $30,000 in LMI premiums (depending on your loan size and LVR), and that’s money you can instead put towards the home purchase or other needs.
Keep in mind the scheme’s guarantee is not a cash payment or a second loan – it’s just an assurance to the lender. You still need to borrow the 95% and you’re responsible for paying your mortgage in full. If you default, the government covers the lender’s loss up to that 15% difference but may seek to recover it from you. So, it doesn’t remove the responsibility of a large mortgage; it just makes it easier to get that mortgage without extra fees.
Also, be aware if you use the First Home Guarantee and later refinance your loan, you might lose the guarantee if you haven’t paid your loan down to 80% by then and could be up for LMI on the refinance. Typically, people stay with the original loan until their balance is below 80% of the property value, or they exit the scheme otherwise. These are future considerations – the key is that the scheme helps you buy now with a low deposit.
Other Home Guarantee Schemes
Alongside the First Home Guarantee, the government also offers:
- Regional First Home Buyer Guarantee: Similar to FHG, but specifically for people buying in regional/rural areas and often for those who have lived in the region for a certain time. This has additional places and slightly lower price caps to encourage regional home ownership.
- Family Home Guarantee: This is for eligible single guardians with at least one dependent child. It allows them to buy with just a 2% deposit with no LMI. It’s a different category, and you don’t have to be a first-home buyer. Many single parents may have owned a home with a former partner and now no longer do. If you happen to be a single parent and a Kiwi, you can also access this, which is a fantastic leg-up in a challenging situation.
First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off financial grant provided by state or territory governments to first-home buyers who are purchasing a brand new home or building one. It was originally introduced in 2000 to offset the impact of GST on buying a new home. The FHOG is generally not available to buy an existing (second-hand) property. It has to be a new construction or sometimes a heavily renovated home that is effectively new.
- The grant amount and price cap vary by state.
- In Queensland, the FHOG is $15,000 for a new home purchase (or build) priced below $750,000.
- In New South Wales, it’s $10,000 for new homes under $600,000 (or building a new home with a total value of up to $750,000).
- Victoria offers $10,000 for new homes in metro areas with a price cap of $750,000 and $20,000 in regional areas for new homes with a price cap of $750k.
- Other states have their own specifics.
- To be eligible, you must be a first-time buyer. This means you should never have owned residential property before, anywhere in Australia.
- You must occupy the home as your principal place of residence for a minimum period, usually at least 6-12 months. So, this grant is not for investment properties or holiday homes.
- Typically, at least one applicant must be an Australian citizen or permanent resident. However, a New Zealand citizen with a Special Category Visa is treated as a permanent resident of Australia for the purposes of the FHOG.
- If you’re buying jointly, all applicants must meet the criteria (or at least not disqualify). For example, if you’re a Kiwi and your partner is an Australian citizen, that’s fine. If your partner was a foreign citizen without PR, most states would make the pair ineligible for the FHOG.
- The property itself usually must be a brand new dwelling – either a newly built house/unit/townhouse or an existing home that’s been substantially renovated by the seller such that it’s effectively new. Vacant land purchases can also qualify for the grant when you build a new home on the land you typically apply for once the house is built.
For Kiwi first-home buyers, the FHOG can be a nice bonus if you are buying a newly built home or building one. Also note that some states have additional incentives for building, such as rebates on stamp duty for off-the-plan purchases or other homebuyer bonuses. Always check your state’s Revenue Office website for the latest grants or concessions available for first-home buyers at the time you’re buying.
Stamp Duty Concessions and Other Schemes
Besides grants, the other major assistance comes in the form of stamp duty concessions or exemptions for first-home buyers. Stamp duty (officially called transfer duty) is a state tax you pay when you buy property. It can be a hefty amount – often 3-5% of the purchase price, depending on the state and property value. Most states in Australia recognise that charging full stamp duty on first-home buyers makes it even harder to get into a home, so they offer relief if you’re under certain price thresholds:
- In Queensland, first-home buyers pay no stamp duty on homes priced under $700,000.
- In New South Wales, first-home buyers pay no stamp duty on purchases up to $800,000 and get a concessional rate up to $1,000,000.
- In Victoria, first-home buyers pay no stamp duty up to $1,000,000.
- Other states have their own concession schemes as well.
As a Kiwi, you are eligible for these concessions just like an Australian citizen, provided you meet the definition of a first-home buyer in that state. Finally, keep in mind:
- Some states require you to apply for these concessions or grants at a certain time, often at or before settlement. Usually, your solicitor or conveyancer will help you fill out the necessary forms when you’re buying the house to ensure you get any applicable benefits.
- If you’re using the First Home Guarantee (federal scheme) and, a First Home Owner Grant (state) and a stamp duty concession (state), you can potentially stack all these benefits.
- Always check the official sources for the most up-to-date info because governments can change these caps and rules with annual budgets. For example, income or price caps can adjust over time, or new programs can be introduced.
Tax and Legal Considerations
Buying property and moving money across countries can have tax implications, and it’s important to know the legal landscape as well. Here, we’ll highlight a few tax aspects, both NZ KiwiSaver-related and Australian property taxes, and legal points to keep in mind as a New Zealand citizen purchasing a home in Australia.
Tax Implications of Using or Transferring KiwiSaver
If you’re thinking of tapping into KiwiSaver for your Australian home (via the transfer and FHSS route), be aware of how the taxes might work:
- Transferring KiwiSaver to Australian Super: The transfer itself is not taxed. You can move your KiwiSaver balance to an Australian super fund without paying tax on that rollover. New Zealand doesn’t tax you on exit, and Australia doesn’t treat the incoming transfer as taxable income as long as it goes directly into super under the special NZ–Aus portability rules.
- Withdrawing via FHSSS: When you eventually pull money out of your Australian super using the First Home Super Saver Scheme, that withdrawal will have some tax. The Australian Taxation Office will withhold tax on the released amount. Effectively, the withdrawn amount is added to your income and taxed at your marginal rate but with a 30% tax offset. In practical terms, most people end up paying around 10-20% tax on the FHSSS-released money. This sounds like a lot, but remember, those contributions likely went into super at a lower tax rate initially. The FHSSS ensures you still come out ahead compared to saving after-tax in a normal bank account.
- KiwiSaver first-home withdrawal in NZ (for comparison): Withdrawals in New Zealand for a first home are not taxed – they’re your savings, after all. So, if you were buying in NZ, you’d get your KiwiSaver money tax-free (apart from having to leave $1k in the account). But since you can’t do that for Australia directly, you end up going through the Aussie super system, which has the above tax treatment. Consider the tax on FHSSS as the price of using your KiwiSaver money in Australia (indirectly).
- Permanent emigration withdrawal (non-Australia): As mentioned, if you emigrated somewhere other than Australia and withdrew your KiwiSaver after a year, you would have to forfeit the government’s contributions (member tax credits) back to the NZ government, but the rest would come to you tax-free from NZ’s side. However, bringing that lump sum into Australia might carry Australian tax on the growth component if not handled correctly. There are Australian rules about foreign superannuation withdrawals. Generally, if you transfer a foreign pension into Australia within 6 months of becoming an Australian tax resident, it can be exempt from Aussie tax. After that, any growth portion might be taxable.
- Keeping KiwiSaver in NZ: If you choose not to transfer your KiwiSaver, just remember that any growth in your KiwiSaver account is happening in NZ. New Zealand doesn’t tax KiwiSaver withdrawals at retirement. But if you are an Australian tax resident by the time you withdraw it, the Australian Tax Office might view the payout as foreign income. Australia and NZ have tax agreements to prevent double taxation, but it’s wise to get advice when the time comes. For now, if you’re not touching KiwiSaver and just leaving it, there’s no immediate tax event – just keep it in mind for your future plans.
Taxes When Owning Property in Australia (Vs NZ)
When you own a home in Australia, you’ll encounter a few taxes and ongoing costs that might differ from what you’d expect in NZ:
- Stamp Duty (Transfer Duty): This is a one-time tax paid at purchase in Australia. We’ve covered that there are concessions for first-home buyers. In NZ, there is no stamp duty on property at all – so this is a uniquely Australian expense for Kiwis to get used to.
- Council Rates: Both countries have local council rates on property. Expect to pay quarterly rates to your local council for water, waste, and general services. This is similar to NZ, although the amounts and calculations may differ. It’s just a standard ongoing cost of homeownership.
- Land tax: Australia’s states levy an annual land tax on real estate that is not your primary residence and only if the land value exceeds a certain threshold. The good news is your own home (principal place of residence) is exempt from land tax in all states. So, as a first-home buyer living in your house, you won’t have land tax. If you were to move out and keep the property as a rental later, then you might start incurring land tax depending on the state and land value. New Zealand has no annual land tax on residential property, so this concept is new to some Kiwis – but again, it doesn’t affect your personal home, only additional properties.
- Income tax on rental income & capital gains: If you live in the home yourself, you don’t have to worry about these – there is no tax on owning your own home. Australia, like NZ, does not tax capital gains on your primary residence when you sell it. However, if you use the property as an investment, Australia will tax any net rental income you earn and will also tax capital gains when you sell, though you get a 50% discount on the gain if you held the property for more than 12 months. Until recently, NZ had no capital gains tax on investment properties, apart from the bright-line rule for quick resales.
- GST: There’s no GST (Goods and Services Tax) on established home purchases in Australia. In NZ, similarly, existing homes have no GST. GST is only on new-build sales by developers and is embedded in the price. So, there is nothing unusual here – GST is not a factor when you’re buying your own home to live in.
Legal Considerations of Buying as an NZ Citizen
- Foreign Investment Rules (FIRB): A major legal win for Kiwis is that you are exempt from Foreign Investment Review Board (FIRB) approval for residential property. Normally, foreigners who want to buy property in Australia must get permission and can usually only buy new properties, not established houses. They also have to pay hefty fees for approval and extra stamp duty surcharges in many states. New Zealand citizens are not subject to these restrictions – thanks to agreements between our countries.
- Property ownership and title: In Australia, property can be owned:
- freehold for land and houses
- Leasehold (some states like ACT have leasehold land),
- Strata title – a form of shared freehold ownership for apartments/units.
This isn’t too different from New Zealand (which has freehold titles, unit titles, and some leasehold properties). As a Kiwi owner, your name goes on the title and you have the same rights and responsibilities as any owner. There’s no legal difference in the type of title you get because you’re an NZ citizen. Do note that Australia’s property buying process might use different jargon: for example, what Kiwis call a “unit title,” Australians call “strata title”; a “body corporate” in NZ is often called an “owners corporation” in some Australian states. But fundamentally, you’re buying property ownership just like you would back home.
- Conveyancing process: The legal process for buying (conveyancing) differs from state to state.
- In Australia, it’s common for the contract of sale to be prepared by the seller (vendor) upfront and available when a property is listed, especially for private treaty sales. You, as the buyer, may sign the contract and pay a small deposit to make an offer formal. Once the seller counter-signs, it becomes binding with possibly a cooling-off period depending on the state. In NZ, offers are often made on a standard sale & purchase agreement document and can be conditional. However, you usually don’t have a statutory cooling-off period like some Aussie states do.
- Auctions in Australia are final. If you’re the highest bidder above reserve, you win and sign the contract immediately with no conditions (similar to auctions in NZ). Just be aware that auction culture is very strong in some Australian cities, so get advice on auction strategy if you go that route, especially if you are planning to use KiwiSaver to buy a house in Australia.
- Each Australian state has its quirks:
- In Queensland, it’s common to have conditional contracts (subject to finance, subject to building and pest inspection), and there’s no general cooling-off if you waive those conditions.
- In New South Wales, contracts often exchange with a 5-day cooling-off period (during which you get inspections and finalise finance) unless it’s waived or an auction. It sounds confusing, but your conveyancer/solicitor will guide you based on local practice. The key is to use a professional who understands the local rules. They will ensure all legal requirements are met and protect your interests.
- Legal rights as a homeowner: Owning a home in Australia gives you the same bundle of rights (and obligations) as it would in NZ.
- You can renovate (subject to local council permits and building codes)
- You pay your rates and utilities,
- You must abide by local laws.
Being a non-citizen does not restrict what you can do with your property. You should also consider things like making a Will in Australia once you acquire property to ensure your asset is handled according to your wishes. Australian law will generally recognise an NZ will, but it’s best to get local advice for estate planning when you have assets in multiple countries.
In summary, legally speaking, New Zealanders are on near-equal footing with Australians in the property market. You don’t face the hurdles other foreigners do, and you have the same property rights and consumer protections.
Step-by-Step Guide for NZ Citizens Buying a Home in Australia
Feeling a bit overwhelmed with all the information? Let’s break the journey down into a simple step-by-step process. This guide will walk you through what to do in order to go from dreaming about a home to actually owning one. Think of it as a roadmap combining what we’ve discussed:
Step 1: Assess Your Financial Situation and KiwiSaver Options
Take a good look at your finances. How much have you saved in Australia so far for a deposit? What’s your KiwiSaver balance, and have you decided what to do with it? If you plan to transfer your KiwiSaver to Aussie Super. Initiate that process early by contacting your KiwiSaver provider and setting up an Australian super fund that accepts KiwiSaver transfers. If you’re keeping KiwiSaver in NZ, then mentally set that money aside for retirement and focus on the resources you have here. Also, check if you have any outstanding debts that might impact your borrowing, like an NZ student loan or credit cards. Factor those into your budget because lenders will. At this stage, also figure out a rough property price range you can afford. Use online calculators to see, for example, “If I have a $50k deposit, what price home could I potentially afford given my income?” This helps set your expectations and goals.
Step 2: Start Saving Aggressively (and Consider FHSSS)
If you haven’t already, ramp up your savings plan. Create a separate savings account for your home deposit and contribute to it regularly. Trim expenses where you can – the more you save now, the better. If you decide to use the First Home Super Saver Scheme, arrange with your employer to salary sacrifice some of your income into your super or make voluntary after-tax contributions. This will build up your deposit in a tax-effective way. Not everyone will use FHSSS, but since you, as a Kiwi, might lack access to KiwiSaver funds for your deposit, it’s a great tool to turbocharge your savings if you have the discipline. Every few months, review your progress. Adjust your plan as needed. It might help to set a timeline to keep yourself on track.
Step 3: Research Home Loan Options and Get Pre-Approval
Start researching lenders or engage a mortgage broker. As a NZ citizen, you have many options, such as major banks, regional banks, credit unions, etc., and you won’t be treated as a foreign investor. Compare interest rates and loan features. Check if you might be eligible for the First Home Guarantee – if so, mention this to the lender/broker so they can factor in a 5% deposit scenario. The goal in this step is to get a home loan pre-approval. That means the bank conditionally agrees to lend you up to a certain amount, subject to you finding a suitable property. During this step, ensure you’ve also discussed any relevant schemes or grants with your broker. For instance, they can help reserve a First Home Guarantee spot or advise on FHOG procedures.
Step 4: Assemble Your Home-Buying Team
Home buying isn’t a solo endeavour; you’ll want a few professionals on your side:
- Mortgage Broker or Bank Loan Officer: (Engaged in Step 3) – They handle your loan application, keep it on track, and ensure you’re getting the best deal you can.
- Conveyancer/Solicitor: This is the legal expert who will handle the property transfer, check the contract for any issues, search the title, and ensure you meet all legal requirements. Engage them early, ideally once you start making offers, so that they can review contracts quickly for you.
- Building/Pest Inspector: You should get a building and pest inspection to uncover any hidden issues. Line up an inspector who can be called when you need them. If you’re buying an apartment, you might skip pest/building inspection and instead review the strata/body corporate reports. However, having an inspector contact is still useful if you have specific concerns.
- Support Network: Home buying can be stressful. If you have friends or family in Australia, get their input. Someone who’s bought property here before can be invaluable to bounce questions off. Even family back in NZ can provide moral support and perhaps remind you to stay objective.
Having this team ready will make the process smoother. You’ll feel more confident knowing you have experts to turn to at each step.
Step 5: House Hunting and Research
With pre-approval in hand and professionals at the ready, you can start the house hunt in earnest. This stage is about finding the right property and doing your due diligence on locations and prices. Tips for this stage:
- Be clear on your criteria: Decide what’s most important – property type (house vs. unit), commute distance, school zones, size and features, etc. Also, decide where you’re willing to compromise. This will help filter the listings you see on real estate websites.
- Research areas: Spend weekends exploring suburbs. Compare recent sales to see what prices are doing. If you’re flexible on location, you might find better value in up-and-coming suburbs slightly further out.
- Attend open homes: Go to inspections for properties you’re interested in. This not only lets you see the house but also get a feel for how popular it is. Busy open houses might indicate lots of competition. Don’t be shy about talking to the real estate agents.
- Due diligence on specific properties: If you start falling in love with a particular place, look into the details. Request a contract from the agent so your solicitor can review it. For units, request the strata report as it shows the health of the building’s finances and any issues. Check the zoning and any planned developments in the area. Local council websites often have a “planning” section where you can see if, say, a big apartment block is planned next door.
- Stay realistic with price: The listing price or price guide can often be on the low side. Your pre-approval sets a hard ceiling – don’t stretch beyond what you can afford. It helps to see a few properties sell to calibrate your expectations.
- Sign up for alerts: Set up email alerts on property websites for the suburbs and criteria you want. This way, you’ll know as soon as new listings hit the market, and you can jump on the ones that suit you.
House hunting can take time – it’s not unusual to spend several months looking (and possibly making a few offers that don’t succeed before you find “the one.” Use this time to refine what you really want, and keep saving in the background. Patience is key here.
Step 6: Making an Offer (or Bidding at Auction)
When you’ve found the right property, it’s time to make your move. If it’s a private sale, you’ll put forward an offer, usually in writing, and possibly negotiate until you and the seller agree on a price. Be sure to include any protections you need, like a finance or building inspection clause if the process in your state allows it, and have your solicitor review the contract before you sign.
If the property is going to auction, you’ll need to have your finances and due diligence (inspections, etc.) sorted before bidding because an auction purchase is typically unconditional. Set a firm maximum bid and stick to it.
Once your offer is accepted (or you win at auction), you’ll sign the contract of sale and pay the deposit, commonly 5-10% of the price. The contract is now legally binding with any agreed conditions noted. Take a breath – you are now well on your way to owning your home, with just the final steps to go!
Step 7: Finalising the Loan and Settlement
With the contract signed, it’s time to complete the purchase. Immediately inform your lender or broker so they can finalise your home loan approval. The bank may do a quick valuation of the property, but since you had pre-approval, this is usually straightforward. You’ll then sign the loan documents to formalise the mortgage. If you plan to use the First Home Super Saver Scheme, submit your request to the ATO for release of funds right away so the money arrives before settlement. Also, arrange home insurance to start by settlement day. Most lenders require the property to be insured.
Meanwhile, your conveyancer/solicitor will conduct title searches, check rates and any charges on the property, and prepare settlement documents. They’ll also liaise with the seller’s solicitor and your bank to schedule the settlement date (when the property officially changes hands). If you’re eligible for a First Home Owner Grant and haven’t applied yet, do so now. The grant funds can usually be applied directly at settlement to reduce how much you need to pay.
On settlement day, everything comes together. You typically won’t need to attend in person – the transfer is done electronically between the parties. Your bank will draw down your loan and pay the seller. You’ll pay your remaining share of the purchase price minus any deposit already paid, and the title will be transferred to your name. Once your conveyancer confirms settlement is complete, you can pick up the keys from the real estate agent. The home is officially yours!
Step 8: Moving In and Post-Purchase Tasks
Congratulations – you’re now a homeowner! After settlement, collect your keys and take care of a few final tasks, such as:
- secure your legal documents,
- update your address with banks, your employer, etc.
- set up utilities such as electricity, internet, etc.
- make sure you have appropriate home insurance in place.
- If you received a First Home Owner Grant or other incentives, follow up to ensure everything is in order.
Then, it’s time to move in and enjoy your new home. Take a moment to appreciate what you’ve achieved – you’ve earned it! Now, you can settle into your new community and start making the house truly your own.
Common Challenges and How to Overcome Them
Even with all the planning, you might hit a few bumps on the road to homeownership in Australia. Here are some common challenges Kiwi first-home buyers face in Australia and tips for overcoming them:
- Building a deposit: Since you are unable to use KiwiSaver to buy a house in Australia, saving can be slow. Boost your deposit by using the FHSSS, cutting expenses, and looking into government schemes (like the First Home Guarantee), so you may only need 5%. Consider buying a more affordable property or location as a starter, then upgrade later.
- Getting loan approval: Lenders want to see stable income and good credit. Maintain your job (avoid switching close to your application), pay down any NZ or Australian debts, and save consistently. If one bank isn’t keen, try another or consult a mortgage broker who knows which lenders are flexible with NZ citizens.
- Navigating the process: Different terms and rules can be confusing. To overcome this, do your homework (like reading this guide!) and lean on professionals. Hire a conveyancer/solicitor to handle legal steps and ask them questions. No question is too silly – it’s new to you, and it’s their job to help. Knowledge will reduce your stress.
- Competition and pricing: In hot markets, you might get outbid or feel priced out. Get pre-approved so you can act fast when you find a place. Be open to different suburbs or property types that fit your budget. Stick to your price limit to avoid overextending. Remember, sometimes it takes a few tries to succeed – that’s normal.
- Balancing long-term finances: If you use your KiwiSaver to buy a house, it can feel like you’re sacrificing retirement savings for a house. Make sure to buy within your means so your mortgage is comfortable. Once you’ve settled into homeownership, you can always ramp up your super or KiwiSaver contributions again. Owning a home can actually boost your long-term financial security, so think of it as re-allocating some savings into property equity.
With awareness and the right strategy, you can tackle these challenges. Many Kiwis have done it before – and you can too!
Conclusion
Using KiwiSaver to buy a house in Australia as a New Zealander may seem complex, but it is achievable – and many Kiwis are living proof. Here are some key takeaways from this article:
- KiwiSaver is largely off-limits for direct use in Australia, so plan around that by saving locally and considering a super transfer if it makes sense for you.
- Government assistance is your friend. As a Kiwi, you can access the First Home Guarantee, First Home Owner Grants, and stamp duty concessions just like an Aussie. These can save you tens of thousands and help you buy sooner.
- Do your homework and lean on experts. Understanding the process and getting help from mortgage brokers, solicitors, and financial advisors can smooth out the journey. They can clarify any confusion around visas or eligibility and ensure you get all the benefits you’re entitled to.
- Don’t get discouraged. Every challenge – from deposit shortfalls to navigating legal quirks – has a solution or at least a way to mitigate it. The case studies show that with determination and smart planning, Kiwis can successfully buy in Australia.
Next Steps And Getting Your Home Loan In Australia
Our team at Hunter Galloway is here to help you buy a home in Australia. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.
If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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