That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
Second Chance KiwiSaver
Discover the untapped potential of Second Chance KiwiSaver – a lifeline for Kiwis who've previously used their KiwiSaver for a home purchase but had to sell due to circumstances beyond their control. We dive deep into how this program works and who qualifies, with a focus on real-world application.
The heart of this episode is an inspiring success story about a couple in their late fifties who had given up hope of ever owning a home again after bankruptcy seven years ago. Despite their challenges, they continued contributing to their KiwiSaver accounts, unknowingly building a pathway back to homeownership. Their journey highlights that it's never too late to start over, and financial setbacks don't have to be permanent.
We walk through the application process step-by-step, explaining how Kāinga Ora assesses eligibility and provides approval letters that remain valid for six months. Learn what documentation you'll need, how to approach your KiwiSaver provider, and what to expect when working with mortgage advisors after approval. This information is crucial for anyone who has faced divorce, bankruptcy, or financial hardship that resulted in selling their first home.
The key takeaway? Don't give up on homeownership if you've had setbacks. Second Chance KiwiSaver might be your path forward, and continuing to contribute to your KiwiSaver is vital regardless of your current housing situation. Share this episode with anyone you know who might benefit from this lesser-known opportunity – you might just change someone's life.
Hello and welcome back to Kunj Kids. Hey, Kunj Kia ora everyone. How are we? Awesome, awesome Kunj. What are we talking about today? What are you caring?
Speaker 2:What's on your mind? I thought we'd touch on the topic of second chance Kiwi Savers. Oof, yes, what is a second chance Ki? So if you have taken out your KiwiSaver before to purchase your property and then, let's say, you sold due to an unexpected event or something like that that was totally out of your control, so say, you had to sell because you almost went bankrupt or had to sell because you were going through a separation or something like that. So this is where the second chance KiwiSaver could come into play for your second time to purchase your first home.
Speaker 1:Yeah, we recently had a few of those. So basically the key was for them in order to obtain that approval, they have to go through Kayanga Ora. That's one of the steps if you are in the position back as a first home buyer. So that's what Kayanga Ora will be looking at. So if you sold a property and you came away with 200K cash, I'm sorry guys to say but you're not going to be viewed as a first home buyer. Cash, I'm sorry guys to say but you're not going to be viewed as a first home buyer. But if you sold a property due to marriage separation or, you know, unfortunate event of losing a job or whatever happened, and you're back in the same position as a first home buyer, you don't have much deposit and KiwiSaver through the years have been going on and you've got, you know, 50k saved up there that you could potentially use again.
Speaker 1:Then, yeah, we had a really interesting case, so let's dive into the one that we've just had recently.
Speaker 2:Yeah, so we saw a case husband and wife who had to sell up their first property was in a real bad financial situation. However, they've come out the other side now Both have a really good KiwiSaver balance again. So throughout that time they were still contributing to that and they were able to use their KiwiSaver again to buy their essentially first home. So good, healthy balance to go towards that property.
Speaker 1:Yeah, and what was really unusual about this case is the few little hooks that we had there. One was this couple essentially went bankrupt about seven years ago, but now they've been discharged. Bankrupt was all clear, and they could use their KiwiSaver this time around for the first home property and I've been dealing with them in the last two years. You know in and out, and they are actually in their late 50s as well Wow. So for them to start over again at their age was just an absolute experience and, to be honest, they actually gave up, like when they came to see me two years ago. They didn't even know it was possible.
Speaker 2:Yeah, yeah. How rewarding is that, though Right To be able to help them do it again second time?
Speaker 1:Well, and this time around they actually bought a proper property that's not going to go down in value and hopefully they're not going to find themselves in the same position, but this puts a roof over their heads and get them ahead in life, and that's why I thought, you know, sharing this message was really important, because we do have clients in similar positions that are in their 50s and they've just given up and they just don't think it's possible, but it is.
Speaker 2:It is possible and again talk to a professional talk to someone who's, you know, been through it, like your financial advisor. Also your lawyer as well have been able to guide you through that.
Speaker 1:Yeah, exactly, and I think the key message is and that's what James and I talk about in other episodes as well for you guys to listen is continuing to contribute to your KiwiSaver is important because, whether you own a house or whether you don't own a house, it still helps you to build your equity position. You know, whether you will a house or whether you don't own a house, it still helps you to build your equity position. You know whether you will retire at 65 and you could withdraw that KiwiSaver to repay your mortgage or reinvest it into something else to help you with your retirement fund, or whether it is for cases like this, where you can get the second chance KiwiSaver. Yeah, yeah, yeah, yeah. So there's a lot available out there. Guys, Just Google second chance KiwiSaver. Yeah, yeah, yeah, yeah. So there's a lot available out there. Guys.
Speaker 1:Just Google second chance KiwiSaver withdrawal and it is a process to go through Kayanga Ora and they will just estimate whether you are. You get a letter of offer given to you from Kayanga Ora that you can take back to your KiwiSaver provider. So here's a few T and Cs for you and then that later usually lasts about six months. Yeah, so Kangor approves you for six months and then you take it to your KiwiSaver provider. You get the release of KiwiSaver and then you, you know you go to your advisor to get the mortgage sorted. So there you go.