Please explain the withdrawals from Employees Provident Fund (EPF) in purchasing/ leasing a property.

Withdrawal to Reduce / Redeem Housing Loan

This withdrawal allows you to utilize your savings from Account 2 to reduce or redeem the balance of your’s or your spouse’s housing loan taken from a financial institution approved by the EPF for the following mode of purchase or construction of a house:

  • Individual purchase; OR
  • Joint purchase with spouse, family members or other individuals; OR

Withdrawal to reduce / redeem the balance of housing loan of the second house is allowed after the first house purchased utilizing EPF withdrawal has been sold or 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

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

Source from: http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=40

 

Withdrawal to Purchase a House

PURPOSE

  • This withdrawal allows you to utilize your savings from Account 2 to partially finance your purchase of a house individually OR jointly with your spouse or close family members namely parents or siblings.
  • Buying of 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.
  • EPF Withdrawal to purchase a second house is allowed after the first house purchased utilizing EPF has been sold or 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

  • (i) A Malaysian Citizen; OR

(ii) A Malaysian Citizen who has made  Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF; OR

(iii) A Non-Malaysian Citizen who:

  • Has became an EPF before 1 August 1998, OR
  • Has obtained a Permanent Resident (PR) status.
  • You have not reached the age 55 at the time the EPF receives your application; AND
  • You have a minimum savings balance of RM500.00 in your Account 2.

Source from: http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=1850

 

Withdrawal to Build a House

  • This withdrawal allows you to utilize your Account 2 to partially finance the building of a house either individually OR  jointly with your spouse and family member(s). Proof of kinship is required to validate your joint purchase.
  • EPF withdrawal to purchase a second house is allowed after the first house purchased utilizing EPF withdrawal has been sold or disposal of ownership of property has 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

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

Source from: http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=1867

 

Housing Loan Monthly Instalment Withdrawal

This withdrawal allows you to utilize your savings from your Account 2 to pay for your monthly instalments of a housing loan taken for the purpose of buying / building a house.

This withdrawal is in addition to the withdrawal to reduce / redeem housing loan

Payments will be made via direct-crediting into your personal bank account. or will be sent to you in form of banker’s cheque payable to the financial institution concerned for those with Non Performing Loans (NPL).
 

Withdrawal Eligibility

  • (i)  A Malaysian Citizen; OR

(ii)  A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF; OR
(iii)  A Non-Malaysian Citizen who:

  • Has become an EPF member before 1 August 1998; OR
  • Has obtained a Permanent Resident status (PR)
  • You have not reached the age 55 at the time the EPF receives your application; AND
  • You have a minimum savings balance of RM600.00 in your Account 2.

Source from: http://www.kwsp.gov.my/index.php?ch=p2members&pg=en_p2members_wdrawtype&ac=2190

For any enquiries and informations, please contact us at +603 7729 9988 or enquiry@kimrealty.com.my