Withdrawal to Purchase a House

This withdrawal allows you to withdraw your savings in Account II to partially finance the purchase of a house either via: Individual purchase; or Joint purchase with spouse, family members or other individuals. This withdrawal also allows you to purchase a house from a developer, an individual or public auction.   Withdrawal Eligibility You are eligible to apply if you are: A Malaysian citizen; or A Permanent Resident; or A Malaysian citizen who have withdrawn your savings under Leaving The Country Withdrawal before 1 August 1995 but subsequently returned and re-contribute to EPF; or A Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1 August 1998. You need to have savings in your Account II and you must also have not reached 55 years of age on the date the application is received by the EPF.   Amount Eligible to Withdraw You can withdraw your savings based on the following, whichever is lower: 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 All balance available in Account II 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 All balance available in Account II of all applicants subject to the maximum eligible amount as stated above If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house OR all balance available in Account II, whichever is lower. 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 all balance available in Account II, whichever is lower. You can choose to determine the amount you wish to withdraw from your savings in Account II, subject to the maximum amount you are entitled to withdrawal by completing "Surat Akujanji Pilihan Amaun Pengeluaran".   Frequency of Withdrawal This withdrawal is only allowed for your first house only. However, if you have made a withdrawal previously to buy your first house and subsequently have sold the house, you may withdraw to buy a second house. Proof of sale of the first house must be produced. After making this withdrawal, you are eligible to withdraw your savings to reduce / redeem the housing loan for the same house once a year.

Conditions of Withdrawal

Conditions of withdrawal to purchase a house are as follows: You have purchased a house (house types: bungalow / terrace / semi-detached / flat / condominium / apartment / studio apartment / service apartment / town house) or a shop house with a dwelling unit; and You financed the purchase of the house by obtaining a housing loan from any financial institution approved by the EPF OR You purchased the house by cash; and You have executed the Sales and Purchase Agreement not more than three years from the date the application is received by EPF; and You have never made Housing Withdrawal OR You are buying a second house – You have previously made Housing Withdrawal but have since sold the house and subsequently purchased another house. You must produce the proof of sale of the first house; and You wish to purchase a house by way of hire purchase from any authority authorised by the EPF. You purchased a piece of land and built 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 withdraw for the purpose of: Purchasing a piece of land or a housing lot only. Renovating, repairing or make extension works to an existing house.

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

Date: 15^th July 2008