The Employee Provident Funds (EPF) allows its members to withdraw their Saving in Account 2 to fund the purchase of a house. This is to enable its member to be able to utilize the savings to own a house for their retirement. This provision is eligible for:
1. Member is a Malaysian or non-Malaysian;
2. Member has not reached the age 55 at the time of the application; and
3. Member has a minimum savings balance of RM500 in Account 2.
Withdrawal Eligibility
1. 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.
2. The purchase of the house is financed by:
· Housing loan from any of the following institutions: Financial Institutions licensed under the Perkhidmatan Kewangan 2013 or Akta Perkhidmatan Kewangan Islam 2013;
· Central / State government or any other government financial agencies;
· Member’s employers;
· Cooperatives / Cooperative Companies with license (approved by Suruhanjaya Koperasi Malaysia)
· Licensed insurance companies as approved by the Central Bank of Malaysia;
· Loan providers as allowed by the EPF; or
· In cash.
3. The date of the Sale and Purchase (S&P) agreement is not more than 3 years at the time the application is received by the EPF.
4. The member never made a Housing Withdrawal; OR had made a withdrawal to purchase for the first house and had sold the house or disposal of ownership had taken place and now the member intends to build a second house. Proof of sale / disposal of ownership of the first house must be submitted to the EPF.
5. The member wants to buy a house which has been acquired from a rental with a view of purchase agreement from a party authorised by the EPF.
6. The member had 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).
The member is not eligible to apply if:
· 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.
The amount that can withdraw (whichever is lower but not less than RM500):
House purchase from an individual
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Joint purchase with spouse or other individual
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The difference between the house price and the loan amount plus an additional 10% of the house price OR All the savings in Account 2
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The difference between the house price and the loan amount plus an additional 10% of the house price OR All the savings in each purchaser’s Account 2 subjected to maximum amount eligible for withdrawal.
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100% Housing Loan
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Cash Purchase
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10% of the house price OR All the savings in Account 2.
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Price of the house with an additional 10% of the house price OR All the savings in Account 2.
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Modes of Payment
Payment in Malaysia
Payment is via direct crediting into the member's bank account subjected to the following conditions:
· The member has an active panel bank account appointed by the EPF;
· The member's personal identification number matches with the bank’s record;
· Payment is in Ringgit Malaysia (RM).
If EPF is unable to credit the payment into the bank account, due to causes such as bank account is not active or the member's personal identification number does not match with the bank’s record, the member will be paid by banker’s cheque.
Overseas Payment
The payment is made through Foreign Bank Draft. Types of currency available are as following:
· The currency as indicated on the application form with the conditions that the currency indicated is listed in EPF for Foreign Bank Draft; or
· In US Dollar if the EPF is unable to make the payment in the currency of the country of your residence.
Documents Required for the Application
1. KWSP 9C (AHL) Withdrawal Form
2. Photocopy of the member's identification (for non-Mykad holder)
3. Bank account information. It is advisable to bring along the bank book / bank statement / photocopy of the bank account when submitting the application)
4. KWSP 3 Form, if the finger print scan fails
