A buyer who has been in KiwiSaver for six years holds a small share in Māori freehold land through her whānau but owns no other property. Does that interest stop her making a first-home withdrawal?
Correct Answer
D) No; ownership of Māori land is not counted as owning property for this purpose.
Kāinga Ora states that a member who currently owns a home, land or a share in a property is not eligible, but this does not include ownership of Māori land. A whānau share in Māori freehold land therefore does not block a first-home withdrawal if the other criteria are met.
Why This Is the Correct Answer
The ownership exclusion expressly carves out Māori land.
Why the Other Options Are Wrong
Option A: Yes; any share in land makes her a current owner and ineligible for withdrawal.
Kāinga Ora excludes ownership of Māori land from the property-ownership test.
Option B: Yes, unless the Māori Land Court first confirms the sale of her share.
She does not need to sell her Māori land interest; it is simply not counted.
Option C: No, but she must apply to Kāinga Ora as a previous home owner.
Owning Māori land does not make her a previous home owner needing a Kāinga Ora determination.
Background Knowledge for Finance
Source: https://kaingaora.govt.nz/en_NZ/home-ownership/kiwisaver-first-home-withdrawal/
Exam Tip for Finance
Māori land interests are ignored for KiwiSaver first-home and First Home Loan ownership tests.
Common Mistakes to Avoid on Finance Questions
- •Treating a shared interest in Māori freehold land as disqualifying property ownership.
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When assessing a mortgage application, which factor is typically given the highest priority by New Zealand lenders?
James has been contributing to KiwiSaver for 4 years and wants to withdraw funds for his first home. His KiwiSaver balance is $45,000, but $15,000 consists of government contributions and employer matching. What is the maximum he can withdraw for his house deposit?
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- → Sarah earns $80,000 annually and wants to borrow $400,000. What is her debt-to-income ratio?
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- → Which type of mortgage allows borrowers to make additional payments that can be re-borrowed later?
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