How April's KiwiSaver Changes Affect Your Mortgage
From Aaron’s YouTube: “BIG Kiwisaver Changes coming 1st April! Do you like these changes?”
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Posted 29 March 2026
The short version
- KiwiSaver contributions rise to 3.5% (employee+employer) from 1st April 2024.
- Your retirement savings will grow faster with higher contributions.
- You'll take home slightly less pay as more goes to KiwiSaver.
- The change slightly reduces your mortgage borrowing capacity due to lower disposable income.
What's changing with KiwiSaver
From 1st April 2024, the default KiwiSaver contribution rate increases from 3% to 3.5% for both employees and employers. This means more money automatically flows into your retirement savings with each pay cycle.
While this is great for your long-term savings, it does mean marginally less money in your pocket on payday. For every $1,000 you earn, you'll now put $35 into KiwiSaver instead of $30.
The mortgage deposit upside
The good news for first-home buyers is that your KiwiSaver balance will grow faster towards your house deposit. With both you and your employer contributing more, your first-home savings get a boost without any extra effort.
This could help you reach your deposit goal sooner, especially if you're using KiwiSaver as a key part of your home-buying strategy. Just remember the standard KiwiSaver withdrawal rules still apply.
The borrowing power effect
The flipside is that lenders assess how much you can borrow based on your disposable income. With more going to KiwiSaver, you'll have slightly less income available for mortgage repayments in their calculations.
As Aaron notes, this impact is likely marginal for most borrowers - we're talking small percentage point differences. But it's worth being aware of if you're right at the edge of your borrowing limit.
This is general information, not personalised financial advice. For advice on your situation, talk to Aaron.
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