First-home withdrawals hit record levels amid family support

Recent data revealed that first-home withdrawals from KiwiSaver reached record highs in the year to March. More than 50,000 individuals withdrew a total of $2.2 billion to secure their first homes.

The increase in withdrawals indicates the ongoing struggle many first-home buyers face in today’s housing market. Despite the significant use of KiwiSaver funds, many are still relying on the 'bank of mum and dad' for additional financial support. This family assistance can be critical in helping young buyers secure properties amid rising prices.

As the housing market evolves, the role of parents in assisting their children financially remains significant. With the high costs of housing, combined with the record withdrawals from KiwiSaver, first-time buyers often find themselves relying on multiple sources of funding to make their homeownership dreams a reality.

As the trend continues, it highlights the challenges young buyers face in securing a place to call home, even as they tap into their own savings and seek support from family.

Originally reported by RNZ New Zealand Headlines.