Good news on making the first step to start saving for your first home. Your KiwiSaver money could make up all, or some of your first-home deposit.

Plus, there are other ways to get a bit of extra money to help you buy your first home, like the HomeStart grant.

To get the most bang for your buck when you’re saving for the deposit, it’s important for your KiwiSaver money to be invested in the fund type that’s right for you.

If you’ve already decided to use your KiwiSaver money to save for your first-home deposit, then there’s just one question remaining.

How soon will you need your money?

Under five years

At JUNO, we say that if you think you’ll need your money in under five years, then a Conservative fund could be a good choice for you.

Being in this lower-risk fund can help reduce the impact of market ups and downs, and help preserve your capital, with some growth.

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More than five years

If buying a first home isn’t immediately on your horizon, then you might want to take a different approach.

If you plan on using your money in about five years or more, then a riskier fund might suit you.

Being in a growth fund can mean higher returns on your KiwiSaver money, but it comes with higher risk. If you’re happy with risk when you’re investing, or perhaps you don’t need your money for 10 years or more, this might be right for you.

But if you’re more of a nervous or conservative investor, or you want to use the money closer to five years, a balanced fund might be better.

You can read more about the different types of JUNO funds here.

If you’re feeling confused about what type of KiwiSaver fund your money should be in when you’re saving for your first home deposit, it’s a great idea to speak to a financial adviser. They can help work out what’s best for your goals and personal situation, and help you work out how much risk you’re happy to take on.

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Published 6 May 2019

Pie Funds Management Limited is the issuer of the JUNO KiwiSaver Scheme. You can read our Product Disclosure Statement here. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. We recommend you speak with a financial adviser. All content is correct at time of publication date.