Useful Info

EPF Withdrawal

EPF Withdrawal To Buy A Home

This withdrawal enables you to utilise your savings from ACCOUNT 2 in your Employees Provident Fund (EPF) to partially finance your purchase of a house individually or jointly with your spouse or close family members, such as your parents and siblings. Buying a house with another individual who has no kinship is allowed provided that the other individual is a buyer and borrower. This withdrawal allows you to buy a house from a developer or an individual or through a public auction.

(%) of Distribution from Monthly Contribution

Purpose of Account

Account-1 (70%)

Savings for retirement
This savings cannot be withdrawn before you attain the age of 55

Account-2 (30%)

To own a house
To finance you and you children's education
For medical expenses
Upon attaining the age of 50

EPF withdrawal to purchase a second house is allowed after the first house purchased utilising EPF has been sold or the disposal of ownership of property has taken place. Disposal of ownership refers to "loss of ownership of the first house owned by you either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase"

Application Eligibility

You are a Malaysian Citizen
You are a Malaysian Citizen who has made Leaving The Country Withdrawal before 1st August 1995 and has opted to re-contribute to the EPF
You are a Non-Malaysian Citizen who:
- Has become an EPF member before 1st August 1998
- Has obtained a Permanent Resident (PR) status
You have not reached the age of 55 at the time the EPF receives your application
You have a minimum savings balance of RM500.00 in your ACCOUNT 2

Procedure

You must submit

EPF withdrawal form [FORM KWSP 9C(AHL)]
An original copy of the Sale & Purchase Agreement (SPA)
A photocopy of your Identification Card
A copy of the letter of loan approval from your end-financier
Proof of relationship (This is for joint purchase involving spouse or next-of-kin, namely parents or siblings. For joint purchase involving next-of-kin, the member is required to submit an explanation letter stating the reason for the joint purchase)

NOTE: The original SPA Letter of Loan Approval from your end-financier and your original Identification Card have to be sighted by the EPF officials

Withdrawal Eligibility

Types of residential housing withdrawals

To purchase or build a first house
To purchase or build a second house
To reduce or redeem the housing loan for first house
To reduce or redeem the housing loan for second house
To assist spouse to reduce or redeem his/her housing loan

HOUSE PURCHASE FOR AN INDIVIDUAL

The difference between the house price and the loan amount plus an additional 10% of the house price

All your savings in ACCOUNT 2

(Whichever is lower but not less than RM500.00)

100% House loan
10% of the house price

All your savings in ACCOUNT 2

(Whichever is lower but not less than RM500.00)

JOINT PURCHASE WITH SPOUSE OR OTHER INDIVIDUAL

The difference between the house price and the loan amount plus an additional 10% of the house price

All the savings in each purchaser's ACCOUNT 2 subject to maximum amount eligible for withdrawal

(Whichever is lower but not less than RM500.00)

Cash Purchase
Price of the house with an additional 10% of the house price

All your savings in ACCOUNT 2

(Whichever is lower but not less than RM500.00)

To purchase or build a second house

Members are allowed to withdraw their EPF savings for a second time to purchase another house on condition that members have sold (not in possession) the first house purchased through EPF withdrawal

To reduce or redeem the housing loan for first house

Application for withdrawal can be made once every year from the date of the last housing withdrawal, with a minimum amount of RM500, but subject to showing proof of sale or not in possession of the first house to EPF

To assist spouse to reduce or redeem his/her housing loan

Members are allowed to withdraw all money from ACCOUNT 2 or the difference between the purchase price and loan amount, whichever is lower, to assist their spouse to reduce or redeem the housing loan even though they are not the borrower
NOTE: The member need not be a joint owner of the house, the condition of withdrawal include the proof of marriage

Cash Purchase from Developer

A confirmation letter from the developer stating that purchase is by cash
Proof of payments of at least 20% of the price of the house
Architect's Certificate to confirm progress of construction is not less than 20%

Terms of Withdrawal

You are eligible to apply if you

Buy a residential house (type : bungalow/terrace/semi-detached/condominium/apartment studio apartment/service apartment/townhouse) or a shop lot with residential unit or a small office home office (SOHO) unit
The purchase of the house is financed by:
- Housing loan from any of the following institutions:
- Financial Institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA);
- Central / State government or any other government financial agencies;
- Member's employers;
- Cooperatives / Cooperative Companies with license (approved by Cooperative Development Department, Ministry of Entrepreneur and Co-operative Development);
- Licensed insurance companies as approved by the Central Bank of Malaysia;
- Loan providers as allowed by the EPF; OR
- Cash
The date of the Sale and Purchase agreement is not more than three (3) years at the time your application is received by the EPF
You have never made a Housing Withdrawal; OR you have made a withdrawal to purchase your first house and have sold the house or disposal of ownership has taken place and now you intend to build your second house. Proof of sale / disposal of ownership of the first house must be submitted to the EPF
You want to buy a house which has been acquired from a rental with a view of purchase agreement from a party authorised by the EPF
You have bought a land and built a house on the same land simultaneously (dates of the agreement to purchase the land and the agreement to construct the house must be within 6 months)

You are not eligible to apply if you

Buy a land or a house lot only
Renovate, repair or do additional work to the existing house
Property ownership is not via sale & purchase transaction
Have taken an overdraft loan
Buy a third house
Buy a house in a foreign country

You may visit this link www.kwsp.gov.my for more accurate & extensive information as these terms & conditions are regularly updated.

List of Documents Required

You may visit this link www.kwsp.gov.my for the list of documents required for submission.

EPF Withdrawal Calculator

You may visit this link www.kwsp.gov.my for an EPF withdrawal calculation.

useful

information

EPF Withdrawal

EPF Withdrawal To Buy A Home

(%) of Distribution from Monthly Contribution

Account-1 (70%)

Account-2 (30%)

Application Eligibility

Procedure

Withdrawal Eligibility

Types of residential housing withdrawals

HOUSE PURCHASE FOR AN INDIVIDUAL

JOINT PURCHASE WITH SPOUSE OR OTHER INDIVIDUAL

To purchase or build a second house

To reduce or redeem the housing loan for first house

To assist spouse to reduce or redeem his/her housing loan

Cash Purchase from Developer

Terms of Withdrawal

You are eligible to apply if you

You are not eligible to apply if you

List of Documents Required

EPF Withdrawal Calculator