B) Withdrawal To Purchase A House

INTRODUCTION

This withdrawal allows you to withdraw your savings in Account II to part finance the purchase of a house as follows: -

• Idividual purchase; or
• Joint purchase with spouse, family members or other individuals.

This withdrawal also allows you to purchase a house from the developer, an individual or public auction.

WITHDRAWAL ELIGIBILITY

You are eligible to apply if :-

• You are a :
  • Malaysian citizen ;
  • Non-Malaysian citizen with Malaysian Permanent Resident status (PR) ;
  • Malaysian citizen who has withdrawn your savings under Leaving The Country Withdrawal before 1 August 1995 and subsequently made an election to re-contribute to EPF ; or
  • Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1 August 1998.

• You have not reached 55 years of age at the time the application is received by EPF.
• You still have savings in Account II.

CONDITIONS FOR WITHDRAWAL

1.      You have purchased a house (house types : bungalow / terrace / semi-detached / apartment / flat / condominium / studio apartment / service apartment) or a shophouse with a dwelling unit ; and

2.      You have executed the Sales and Purchase Agreement not more than three years on the date the application is received by EPF ; and

3.      You have never withdrawn your EPF savings for housing OR You purchased a second house ¿ you have withdrawn your EPF savings for housing before this and have sold the house and subsequently purchased another house (you must produce the proof of sale of the first house) ; and

4.      You financed the purchase of the house by obtaining a housing loan from any financial institution approved by EPF OR You purchased the house by cash.

5.      You wish to purchase a house by way of hire purchase from any authority authorised by EPF.

6.      You purchased a piece of land and build a house on it simultaneously (the date of Land Purchase Agreement with the House Construction Agreement must be within 6 months).

However, you are not eligible to make withdrawal for the purpose of :-

• Purchasing a piece of land or a housing lot only ;
• Renovate, repair or make extensions to an existing house.

AMOUNT ELIGIBLE FOR WITHDRAWAL

1.      You can withdraw your savings based on the following, whichever is lower :

a.      Individual Purchase

The difference between the price of the house and the housing loan
with an additional 10% of the price of the house
OR
The balance available in Account II.

b.      Joint Withdrawal With Spouse, Family Members or Other Individuals

The difference between the price of the house and the housing loan
with an additional 10% of the price of the house
OR
The balance available in Account II of all applicants
subject to the maximum eligible amount as stated above.

2.      If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house OR the balance available in Account II, whichever is lower.

3.      If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house OR the balance available in Account II, whichever is lower.

4.      You can choose to determine the amount of savings that you wish to withdraw from your Account II, subject to the maximum amount eligible for withdrawal. You are required to complete ¿Surat Akujanji Pilihan Amaun Pengeluaran¿ for this purpose.

EXAMPLE 1 (Individual Purchase)

Encik Sallehuddin purchased a house costing RM75,000.00 and obtained a housing loan of RM60,000.00. His total EPF savings in Account II is RM40,000.00. Therefore the amount of savings that he can withdraw is :

( Download : EPF - Individual Purchaser Calculator )

Since the maximum amount he is eligible to withdraw is lower than his total savings available in Account II, Encik Sallehuddin can withdraw RM22,500.00 only.

 

EXAMPLE 2 (Individual Purchase By Cash)

Encik Amirul purchased a house costing RM125,000.00. He did not take any housing loan to finance the purchase. He has paid RM35,000.00 to the developer. His total savings in Account II is RM60,000.00.

Since Encik Amirul has RM60,000.00 only in Account II, he can withdraw all of his savings in Account II.


EXAMPLE 3 (Joint Purchase)

Encik Amir and Puan Syuhada purchased a house costing RM100,000.00 and they obtained a housing loan of RM100,000.00. Encik Amir has RM20,000.00 in his Account II and Puan Syuhada has RM3,600.00 only in her Account II.

Since both members obtained 100% housing loan, the maximum amount that can be withdrawn by this couple is as much as 10% of the price of the house only, i.e. RM10,000.00 to cover for side cost. Applications will be processed according to the chosen withdrawal amount respectively by completing `Surat Akujanji Pilihan Amaun Pengeluaran¿.


EXAMPLE 4 (Purchase Of A Housing Lot And Building A House On It Simultaneously

Encik Nasaruddin purchased a piece of land costing RM80,000.00 on 1st January 2005 and obtained a loan of RM70,000.00 to finance the purchase. On 1st May 2002, he has signed an agreement to build a house on the said land with a construction cost of RM200,000.00. He has obtained a housing loan of RM100,000.00 to build the house. The calculation for withdrawal by Encik Nasaruddin is as follows :

HOW TO APPLY AND THE DOCUMENTS REQUIRED

You are required to complete Form KWSP 9C (AHL) and to submit this form together with the original and photocopy of the following documents, whichever is applicable :

A.      PURCHASE FROM DEVELOPER OR PUBLIC AUCTION

                            i.          Your Identification Card / Military Identification Card
OR
The following Identification Card affixed with your right and left thumbprints :

a.      MyKad

b.      Police Identification Card and enclose a letter from the Police Department confirming your Identification Card number.

                           ii.          Your Personal Savings Account Passbook/Statement or Personal Current Account Statement which is still active;

                          iii.          Sales and Purchase Agreement (purchase from developer) or Proclamation of Sale (purchase from public auction) containing your name or the names of all applicants for joint purchase and that is executed not more than 3 years on the date the application is received by EPF;

                          iv.          If you have obtained a housing loan, the following documents are required :-

·        Housing Loan Approval Letter (if the loan approval is less than one year);
OR
Housing Loan Approval Letter and Housing Loan Agreement / Mortgage Form 16A (if the loan approval has been more than one year) ;

                          v.          If you self-finance the purchase of the house, the following documents are required :-

B.      PURCHASE FROM AN INDIVIDUAL

                            i.          Documents as mentioned under A(i) to (iv) for Purchase From Developer above, and

                           ii.           

                           iii.           

                         iv.          If you self-finance the purchase of the house, the following documents are required :-

C.       

D.     PURCHASE OF LAND AND CONSTRUCTION OF A HOUSE SIMULTANEOUSLY AS A PACKAGE
(This package includes the cost of purchasing the land and building the house)

                            i.          Documents as mentioned under A(i), (ii) and (iv) for Purchase From Developer above, and

                           ii.          House Construction Agreement containing your name or the names of all applicants for joint withdrawal and that is executed not more than 3 years on the date the application is received by EPF ;

                          iii.          Sales and Purchase of Land Agreement containing your name or the names of all applicants for joint withdrawal and the date of agreement is within 6 months with the House Construction Agreement ;

                          iv.          Deed of Title of the land in the name of the seller/land owner ;

                           v.          Power of Attorney which has been registered with the Court if the purchase of land and house construction is made using a Power of Attorney ; and

                          vi.          If you self-financed the purchase of the house, the following documents are required :-

 .        Letter from the developer confirming the purchase paid in cash ;

a.      Proof of payment of at least 20% of the price of the house ; and

b.      Architect Certificate with at least 20% of construction progress.

E.      PURCHASE A SECOND HOUSE

                            i.          Documents as mentioned under paragraph A to C where applicable, and

                           ii.          One of the following documents as the proof of sale of the first house :

 .        Transfer of ownership document Form KTN 14A duly completed by the Land Office ;

a.      Deed of Assignment duly completed ;

b.      Deed of Title in the name of the purchaser AND Sales and Purchase Agreement between you and the purchaser ;

c.      Real Property Gains Tax Form (CKHT 5) AND Sales and Purchase Agreement between you and the purchaser ;

d.      Public Auction Form (KTN 16F or KTN 16I) and confirmation from the bank ;

e.      Transfer of property ownership through a Court Order to any party AND Divorce Papers (for divorced cases) ; or

f.       Official Search from the Land Office showing your name and the new owner AND Sales and Purchase Agreement between you and the purchaser.

SUBMISSION OF APPLICATION

All application forms can be submitted to any EPF office either at the counter or by post :

• Submission at the counter ¿ enclose together with the original documents and their photocopies.
• Submission by post ¿ photocopies of documents must be certified by officers authorised by EPF.

CERTIFYING OFFICERS

Officers authorised by EPF to certify supporting documents to application form are as follows:-

• EPF Officer:-
  • EPF Officer (Grade 18 and above)
  • EPF Counter Duties
• Applicant¿s employer
• Justice Of The Peace
• Penghulu/Penggawa
• Advocates and Solicitors
• Government Officers in the Management and Professional Group
• State Assemblyman
• Member of Parliament
• Commissioner of Oath

MODE OF PAYMENT

All withdrawal payments will be credited directly into your bank account subject to the following conditions :-

• You have a bank account with any panel of banks appointed by the EPF
• Your bank account is still active ; and
• Your bank account is a Personal Savings/Current Bank Account or Joint Account (for withdrawal payment above RM100,000 only).

However, if the EPF is unable to credit the payment into your bank account due to your bank account is not active or your personal identification number does not match, you will be paid by banker¿s cheque.

(For more information regarding direct payment to your bank account and the list of banks appointed by the EPF, please refer to the Direct Crediting System Into Member¿s Bank Account)

Note : After making this withdrawal, you are eligible to withdraw your savings to reduce/redeem the housing loan for the same house once in three years from the date of the last withdrawal. For further information, please refer to Reduce/Redeem Housing Loan Withdrawal.


CORRESPONDENCE ADDRESS

You are required to furnish your full address in Form KWSP 9C(AHL). Any change of address after submitting this application must be notified to the nearest EPF office.


ENQUIRIES

If you have any enquiry or require further information on this withdrawal, please contact the EPF office

• Any nearest EPF office
• EPF Call Management Centre, Tel : 03-8732 6000
• E-mail : enquiry@epf.gov.my

Please quote your EPF membership number and the type of withdrawal that you have applied for when you contact the EPF. You are encouraged to contact the EPF directly to obtain assistance and advice.


ATTENTION

This information is only a guideline please contact EPF for more information.  Source: http://www.kwsp.gov.my