Guideline for EPF Housing Withdrawal Scheme

home

WITHDRAWAL SCHEME FOR REDUCING / REDEEMING HOUSING LOAN

This scheme allows members to withdraw from their Account II to reduce or redeem their housing loans. Withdrawal can be made once in every three years.

Terms and condition

Member may apply under this scheme if:

  1. there is an outstanding balance of loan for purchasing a house or shophouse with dwelling unit;

  2. members who have refinanced their said house are subjected to withdraw the amount of the original housing loan; and

  3. member has not attained the age of 55 from the date of application received by the EPF.

Members do not qualifies under this scheme if:

  1. the purpose of withdrawal is for renovation, repair or other extension of the existing house.

  2. member mortgage the house to acquire finance for the purpose of other than to purchase or build a house.

Amount eligible for withdrawal Members can withdraw their savings under this scheme as below or which ever is lower:

For individual application

  • total outstanding balance of the loan; or

  • balance amount in Account II.

For joint application

  • total outstanding balance of the loan, or

  • balance amount in Account II for both Application.

Under joint application, EPF will process the application of first purchaser. If the amount is insufficient, EPF will proceed to process the second purchaser.

Example

Individual Application

Price of the House
RM 75,000.00
Housing Loan
RM 67,500.00
Outstanding Balance
RM 31,500.00
Balance in Account II
RM 15,000.00
Amount eligible for withdrawal
RM 15,000.00

 

Joint Application

Price of the House
RM180,000.00
Housing Loan
RM140,000.00
Outstanding Balance
RM 98,500.00
Balance in Account II
RM 20,000.00
Balance in Account II
RM 10,000.00
Amount eligible for withdrawal
withdrawal RM 30,000.00

How to apply

Members are allowed to apply for the withdrawal under this scheme every three years from the date of the first withdrawal from the same account. Members are required to submit KWSP 9C(AHL) form to the EPF.

WITHDRAWAL TO REDUCE OR REDEEMING HOUSING LOAN FOR SPOUSE

Effective from 2nd January 2001, members can withdraw from their account II to reduce or redeem housing loan for their spouse on the condition that:

  • they are non-borrowers;

  • they are registered as co-owners;

  • the house is mortgaged to the financial institution.

WITHDRAWAL TO REDUCE OR REDEEMING HOUSING LOAN FOR SECOND HOUSE

Effective from 2nd January 2001, members can also withdraw to reduce or redeeming housing loan for their second house on condition that the first house, which was funded from their EPF savings has been sold.

For more information, please visit or call the nearest EPF office. Any queries can be sent to the EPF via e-mail.

 

Kumpluan Wang Simpanan Pekerja
(Employees Provident Fund)
Bangunan KWSP
Jalan Raja Laut
50350 Kuala Lumpur

 

Copyright © propertyZoom.com Sdn Bhd * Read Disclaimer *