How mortgage diversion works

Members who registered for mortgage diversion before 1 June 2009 may be able to use some of their contributions to pay off their mortgage.

Some KiwiSaver members are currently splitting their KiwiSaver contributions - up to half towards repaying the mortgage on their home and the rest to their KiwiSaver savings. This is called "mortgage diversion". Diverted contributions don't qualify for the member tax credit.

The Government closed the KiwiSaver mortgage diversion facility to new applicants from 1 June 2009. Members who were using mortgage diversion at 1 June 2009 can continue to use it for as long as their KiwiSaver and mortgage providers offer the facility.

The closure of mortgage diversion means that members who:

  • stop using mortgage diversion after 1 June 2009 will be unable to restart, or
  • transfer between KiwiSaver providers will be unable to continue using mortgage diversion.