If you live in employer-provided housing, you are captured under the Tenancy Services “service tenancy workers” type of tenancy.
Of course having your employer providing you housing is great, but it has also meant that you have missed out on the ability to withdraw your KiwiSaver to buy a first home. But that is all changing. You might have seen the good news with changes to the KiwiSaver settings have made things clearer and more flexible for service tenancy workers to gain access to their KiwiSaver in the same way that many Kiwis already have.
We are mortgage advisers who’ve helped a lot of Kiwis into their first homes and now we’re seeing another real opportunity to help more Kiwis – to help you.
Changes for Service Tenancy Workers
Workers in service tenancies have effectively been locked out of first-home withdrawal because their jobs require them to live in employer-provided housing, and so the Government is tweaking KiwiSaver laws so workers with “live-in” job residences. This includes a huge number of Kiwis such as farmers and rural farm related workers, rural school teachers and country cops. It’s not just rural people as there are a number of people in tourism, hospitality, park workers and also many defence personnel who have accommodation provided as part of their employment.
The Finance Minister Nicola Willis recently announced that they are making a technical change to the KiwiSaver Act to ensure workers in service tenancies aren’t denied the opportunity to put a foot on the property ladder. These Kiwi workers will be able to use their savings within KiwiSaver to buy a first home too.
The change will allow service tenancy workers to use their KiwiSaver for a first home purchase without having to live in it immediately.
Plus many farmers want to buy a farm which includes a home and so the Government is also changing the law to allow first-time farm buyers to put their KiwiSaver balances towards the purchase of a farm through a commercial entity they majority own, and where it will be their principal place of residence.
These changes need to go through a process, with a Bill to go before a Select Committee to introduce the legislation giving effect to the changes. The aim will be to have this introduced to Parliament in the middle of the year and enacted after the 2026 General Election.
How To Apply for a Mortgage
We understand that you are a first home buyer even if you are not going to immediately live in your new house, and as such you will want some support to understand the new rules and get your home loan application ready.
Your application is going to be a little different from most as you will still have your employer-provided housing and that allows you to have a tenant in your new home for now. That extra rent can help your application and mean that you could borrow more, but you also need to ensure that the mortgage will be affordable for you without rent as you will probably want to call this your home at some point.
Our team at Mortgage Managers know a lot about helping first home buyers, and we also operate the largest New Zealand forum specifically designed for first home buyers too: Kiwi First Home Buyers Group on Facebook.
We Answer the Frequently Asked Questions
Since the announcement we have seen a lot of questions, and especially on our Facebook Group: Kiwi First Home Buyers Group
While we do not yet know the details yet, we will always try to answer what we can.
How Much Deposit Do You Need? As mortgage advisers we expect that the lending criteria for workers with “live-in” job residences will be the same as for all other eligible Kiwis and that means you could have anywhere from 5% deposit.
Can Rent Be Added? We know that some workers that are supplied houses as part of their renumeration may earn a little less because they are provided a home, and therefore we would expect that anyone that fits this service tenancy workers amendment will not only be able to use their KiwiSaver but will be able to add the rent to help the banks servicing calculations.
Is this just for farm workers? No, not at all. When you look at the press releases it might appear that it was designed specifically for farm workers, but there are many other workers in New Zealand that are provided homes and living accommodation by their employers. We expect that this amendment will apply to anyone that fits the service tenancy workers as determined by the Tenancy Services.
PLEASE NOTE: As mentioned, we do not yet have all the details from Government or the various policies from the banks so please bear in mind that these answers may not be 100% accurate.
Other Reading
You might have employer-provided housing, but as first home buyers you might also find some of these articles useful.
First Home Buyers’ Information: Your Pathway to Home Ownership in New Zealand – Embarking on the journey to purchasing your first home in New Zealand is both thrilling and nerve-wracking. You’re about to make one of the most significant investments in your life, and the stakes are high. From understanding the various home loan options to navigating the intricacies of a property purchase, there’s a lot to get your head around.
Kāinga Ora First Home Loan – The Kāinga Ora First Home Loan Programme offers a beacon of hope for those looking to secure their dream home without the steep financial burdens typically associated with mortgages. This initiative provides a viable path to homeownership, enabling you to step onto the property ladder with more confidence and fewer obstacles. By offering a helping hand through reduced deposit requirements and government support, Kāinga Ora aims to make homeownership more accessible than ever before.
Getting the Best Home Loan in 2026 – For most first home buyers the excitement of just getting a home loan approved feels like a win, but often it means that you do not end up getting the best home loan. Of course you might be happy enough just to get your home loan approval, as that allows you to buy your first home which will also probably your biggest purchase ever. But maybe you should also make the effort to ensure that you are getting the best home loan – it’s probably your biggest financial commitment (debt) ever!
