Planning to buy a house but worried about the monthly loan repayments and huge financial commitments? Did you know that you can actually finance your purchase by withdrawing from your EPF Account 2?
Here is how,
- Malaysians & Non-Malaysians
- Below 55 years of age
- At least RM500 in Account 2
- Purchasing residential home*
- Approved loan from recognized lenders** OR through rent-to-own schemes*** OR self-financed
- Never made a housing withdrawal/have made housing withdrawal before but have sold/disposed of the property
* This scheme allows members (individuals or joint purchasers) to withdraw money from their EPF Account 2 to purchase a house (type: bungalow / terrace / semi-detached / apartment / condominium / studio apartment / service apartment / townhouse / SOHO) or a shop lot with residential unit, from a developer, individual, or in a public auction.
You can withdraw the difference between the SPA house price and the housing loan amount (which is typically 90% as most first time home buyers have to submit a 10% down payment) plus 10% on the price of the house.
For example, if you are buying a property from Kinta Properties, Olive
Price of Olive: RM353,800; Loan Amount (90%): RM318,420
Amount you can withdraw: (RM353,800 – RM318,420) + (10% of RM353,800) = RM70,760
or the amount of money you have in your Account 2, whichever is lower
Generally, you will have to pay for the following costs upfront and complete the following forms before applying for a withdrawal:
- Down payment for the house.
- Lawyer fees and stamp duty for the Sale and Purchase Agreement.
- Form KWSP 9C (AHL) and Checklist
- Form KWSP 3 (Pindaan) – for mail submissions/failed thumbprint verification
- Copy of identification documents with original for verification (Non-MyKad holders only)
- Sales and Purchase Agreement – not more than 3 years from the date of application
Withdrawals are not allowed for
- Buying land/house lot
- Acquisition of property not done via sale and purchase transaction
- Member who has taken an overdraft loan
- Buying a third house;
- Buying properties overseas
The EPF withdrawal application is an efficient process; the whole process usually takes less than 3 weeks to complete, from the date of application to payment made.
Looking for your new home? Drop by our office or show homes today for a chat and let us help you plan your future home! More info about the T&Cs can be found at KWSP’s website