EPF Housing Withdrawal Scheme

EPF Housing Withdrawal Scheme

A) General Q & A

B) Withdrawal to Purchase a House

General:

1) How long does the EPF approve my withdrawal application?

If the application submitted is in order, the EPF will approve your application under Age 50 Years and 55 Years Withdrawal Schemes not later than 7 days and for other schemes not later than 14 days from the date application is received.

2) Where can I get withdrawal application forms?

Withdrawal application forms can be obtained from any EPF State Office or Branch or from the EPF website.

3) Where can I submit my application form?

You can submit your application form at any EPF State Office or Branch throughout the country. Members residing overseas can address their applications to the General Manager, KWSP Wilayah Persekutuan, 13th Floor, EPF Building, Jalan Raja Laut, 50350 Kuala Lumpur, Malaysia.

 

General Question & Answer:


1) Question: Do I need to wait until 5 years as an EPF member before I can apply for withdrawal to purchase a house?

Answer: No, there is no waiting period for this scheme. You can apply for the withdrawal if you have savings in Account II.


2) Question: Can I withdraw my EPF savings to purchase a house paid in cash?

Answer: Yes, you can. You are required to submit the payment receipt made to the developer/vendor of not less than 20% from the purchase price of the house. The amount that you can withdraw is the purchase price of the house plus 10% of the purchase price or all your savings in Account II, whichever is lower.


3) Question: If I have bought a house using my EPF savings, can I withdraw my savings again to purchase a new house?

Answer: You are eligible to apply under Housing Withdrawal Scheme to purchase a second house on condition that you have sold the house that you have bought earlier with your EPF savings.


4) Question: Can I assist my spouse to reduce/settle his/her housing loan?

Answer: Yes, you can assist your spouse to reduce/settle his/her housing loan balance on condition that your name is stated in the Deed of Title.


5) Question: Can I withdraw my EPF savings to purchase a piece of land?

Answer: You cannot withdraw your EPF savings to purchase a piece of land. However, you can withdraw your savings to purchase a land and build a house on it simultaneously.


 6) Question: Can I withdraw my savings to build a house on a land that is not in my name?

Answer: No, except to build a house on a land owned by your spouse.


 7) Question: If I build a house on a land owned by my spouse, can I make withdrawal to reduce/settle the housing loan balance?

Answer: Yes, subject to the condition that you are the borrower of the loan taken from the financial institution to finance the house.


Source: http://www.kwsp.gov.my

 

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 )

 

Price of The House

RM 75,000.00

Housing Loan

RM 60,000.00

Difference Between The Price of The House and Housing Loan

RM 15,000.00

Additional 10% of The Price of The House

RM   7,500.00

Maximum Amount Eligible For Withdrawal

RM 22,500.00

Balance Available in Account II

RM 40,000.00

The Amount That Can Be Withdrawn

RM 22,500.00

 

 


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.

 

Price of The House

RM 125,000.00

Additional 10% of The Price of The House

RM   12,500.00

Amount Eligible For Withdrawal

RM 137,500.00

Balance Available in Account II

RM   60,000.00

The Amount That Can Be Withdrawn

RM   60,000.00


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.

 

Price of The House

RM 100,000.00

Housing Loan

RM 100,000.00

10% of The Price of The House

RM   10,000.00

Maximum Amount Eligible For Withdrawal By The Couple

RM   10,000.00

Balance Available in Account II for Encik Amir

RM   20,000.00

Balance Available in Account II for Puan Syuhada

RM     3,600.00

The Amount Chosen To Be Withdrawn By Encik Amir

RM     7,000.00

The Amount That Can Be Withdrawn By Puan Syuhada

RM     3,000.00

Total Amount That Can Be Withdrawn By The Couple

RM   10,000.00


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 :

 

Price of The Land

RM    80,000.00

Cost of Construction of The House

RM 200,000.00

Total Price of The Land and Cost of Construction of The House

RM 280,000.00

Total Housing Loan To Purchase The Land and To Build The House

RM 170,000.00

Difference Between The Price of The Land and Cost of Construction of The House with The Total Housing Loan

RM 110,000.00

Additional 10% of The Total Price of The Land and Cost of Construction of The House

RM   28,000.00

Maximum Amount Eligible For Withdrawal

RM 138,000.00

Balance Available in Account II

RM 150,000.00

The Amount That Can Be Withdrawn

RM 138,000.00


 

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 :-

Purchase From Developer

Purchase From Public Auction

a) Letter from the developer confirming the purchase paid in cash ; and

a) Letter from the lawyer confirming the purchase paid in cash ; and

b) Proof of payment of at least 20% from the price of the house ; and

b) Proof of payment of at least 20% from the price of the house ; and

c) Architect Certificate with at least 20% of construction progress.

c) Transfer of ownership document such as :

Form KTN 16F (Perakuan Jual Oleh Mahkamah)
OR
Form KTN 16I (Perakuan Jual Oleh Pentadbir Tanah)
OR
Deed of Assignment in your name OR Declaration Letter from you to produce the transfer of ownership document above (duly completed) within 6 months.

 

B.      PURCHASE FROM AN INDIVIDUAL

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

                           ii.           

Individual / Strata
Title Has Been Issued

Individual / Strata
Title Has Not Been Issued

(ii) Deed of Title in the name of the seller and Letter of consent of transfer issued by the Land Office (if there is restriction on the property) ;
OR
Deed of Title in your name.

(ii) Letter of consent of transfer from the developer and Letter of consent of transfer issued by the Land Office/Local Authority (if there is restriction on the property) ;
OR
Deed of Assignment in your name.

                           iii.           

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

Purchase From Developer

Purchase From Public Auction

(a) Letter from the lawyer in charge of the sale and purchase confirming the purchase paid in cash ; and

(a) Letter from the lawyer in charge of the sale and purchase confirming the purchase paid in cash ; and

(b) Proof of payment of at least 20% of the price of the house; and

(b) Proof of payment of at least 20% of the price of the house ; and

(c) Deed of Title in your name
OR
Duly completed Form KTN 14A in your name
OR
Form KTN 14A in your name which has not been processed by the Land Office and Receipt of Submission (`Penyata Perserahan¿) from the Land Office and Declaration Letter from you to produce the duly completed Form KTN 14A within 6 months.

(c) Deed of Assignment in your name
OR
Declaration Letter from you to produce the duly completed Deed of Assignment within 6 months.

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

 

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