⚠️ Important Update: The KiwiSaver HomeStart Grant was discontinued on 22 May 2024
KiwiSaver First Home Grant (HomeStart) - Discontinued
The KiwiSaver HomeStart Grant (also known as the First Home Grant) provided up to $10,000 for first home buyers purchasing new builds. This grant is no longer available, but you can still access your KiwiSaver savings for your first home deposit. This guide explains what changed and what options remain for first home buyers in 2025.
What Was the KiwiSaver HomeStart Grant?
The KiwiSaver HomeStart Grant was a government subsidy designed to help first home buyers increase their deposit. It provided additional funding on top of your KiwiSaver withdrawal, making homeownership more accessible.
For Existing Homes
Up to $5,000
$1,000 for each year you contributed to KiwiSaver (minimum 3 years, maximum 5 years)
For New Builds
Up to $10,000
$2,000 for each year you contributed to KiwiSaver (minimum 3 years, maximum 5 years)
Historical Example:
If you contributed to KiwiSaver for 5 years and bought a new build, you would have received $10,000. Combined with your KiwiSaver withdrawal, this significantly boosted your deposit.
Why Was the Grant Discontinued?
The New Zealand government discontinued the HomeStart Grant on 22 May 2024 as part of broader budget cuts and fiscal responsibility measures.
Budget Constraints
The government needed to reduce spending and the HomeStart Grant was identified as a discretionary expense that could be cut.
Housing Market Conditions
With house prices stabilizing and in some areas declining from 2021-2022 peaks, the government determined the grant was less critical than during the housing boom.
Limited Impact Analysis
Government analysis suggested the grant had minimal long-term impact on homeownership rates and may have contributed to price inflation in some markets.
What Financial Help Is Still Available for First Home Buyers?
While the HomeStart Grant is gone, there are still several ways to get financial assistance for your first home:
1. KiwiSaver First Home Withdrawal
Still Available! You can withdraw almost all your KiwiSaver balance (minus $1,000 minimum) for your first home after 3 years of membership.
What You Can Withdraw:
- ✓All your employee contributions (minus $1,000)
- ✓All employer contributions
- ✓Investment returns and earnings
- ✓Government contributions (Member Tax Credits)
2. First Home Loan (Kāinga Ora)
Still Available! Kāinga Ora offers low-deposit home loans with as little as 5% deposit for eligible first home buyers.
Key Features:
- ✓Minimum 5% deposit (vs standard 20%)
- ✓Income caps apply (e.g., $130,000 for couples in Auckland)
- ✓House price caps vary by region
- ✓Must be a first home buyer or "second-chance buyer"
3. Welcome Home Loan (Low-Deposit)
Still Available! Participating banks offer low-deposit loans (10-15%) for first home buyers who meet income and price criteria.
Advantages:
- ✓Avoid mortgage insurance (LMI) on deposits as low as 10%
- ✓Competitive interest rates
- ✓Offered by ANZ, BNZ, TSB, Westpac, and others
4. Family Guarantor Loans
If you have family willing to help, a guarantor loan allows you to borrow with little to no deposit by using a family member's property as additional security.
How It Works:
- ✓A family member guarantees part of your loan using their home equity
- ✓You can buy with a much smaller deposit (sometimes 0%)
- ✓The guarantor is only liable if you default
How Does This Impact First Home Buyers in 2025?
The Reality Check
Losing the HomeStart Grant means first home buyers need to save an additional $5,000-$10,000 for their deposit. While this is undeniably harder, it's not insurmountable.
What You Can Do:
- 1.Maximize Your KiwiSaver: Increase contributions to 4%, 6%, or 10% to build your deposit faster
- 2.Choose a Growth Fund: Switch to a higher-growth KiwiSaver fund if you're planning to buy in 5+ years
- 3.Explore Low-Deposit Loans: Investigate Kāinga Ora First Home Loan or Welcome Home Loan options
- 4.Budget Aggressively: Cut expenses and save the extra $5-10k over 1-2 years
- 5.Consider Buying with a Partner: Combine KiwiSaver balances and incomes to increase borrowing power
Silver Lining:
House prices have softened since 2021-2022 peaks in many regions. The money you would have received from the grant may have been offset by lower property prices, especially for new builds.
HomeStart Grant Timeline
Grant Launched
KiwiSaver HomeStart Grant introduced to help first home buyers with deposits
Grant Doubled for New Builds
Amount increased to $10,000 for new builds to encourage construction
Housing Boom Peak
Grant usage at all-time high as house prices surge and first home buyers struggle
Grant Discontinued (22 May 2024)
Government ends the HomeStart Grant program due to budget constraints
Frequently Asked Questions
I applied before 22 May 2024. Can I still get the grant?
If you submitted a complete application before the discontinuation date (22 May 2024), you may still be eligible. Contact Kāinga Ora to check your application status.
Will the grant come back?
There's no indication the HomeStart Grant will be reinstated. Government policy can change, but as of October 2025, there are no plans to bring it back.
Is there any other government grant for first home buyers?
No, the HomeStart Grant was the only direct government grant for first home buyers. However, low-deposit loan schemes (First Home Loan, Welcome Home Loan) are still available through Kāinga Ora and participating banks.
Can I still use my KiwiSaver for my first home?
Yes! The KiwiSaver first home withdrawal is completely separate from the HomeStart Grant and is still fully available. After 3 years of membership, you can withdraw your KiwiSaver balance (minus $1,000 minimum) for your first home.
Maximize Your KiwiSaver for Your First Home
Without the HomeStart Grant, your KiwiSaver is more important than ever. Compare providers to find the best fund for first home buyers.
Related Articles
KiwiSaver First Home Withdrawal Guide
Complete guide to withdrawing your KiwiSaver for your first home deposit.
How Much Can I Withdraw?
Calculate exactly how much of your KiwiSaver you can access for your first home.
Best KiwiSaver for First Home Buyers
Top-rated funds for first home buyers based on growth potential and fees.
KiwiSaver Basics Guide
Everything you need to know about KiwiSaver contributions and withdrawals.