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HOUSING WITHDRAWAL SCHEME
(Via EPF
- ACCOUNT II)
Generally, the Employees Provident Fund
(EPF) consists of 3 accounts, namely Account I, II and III. Account I is a long term
savings scheme for retirement & old age security. Account II and III are short term
saving schemes and members may withdraw their savings for certain approved purposes.
30% of the member’s contribution
is credited into Account II. The housing withdrawal scheme under Account II is
for 2 purposes :
- Withdrawals to buy or build a house
- Withdrawals to reduce or settle the balance of a housing
loan.
Members can withdraw the difference between
the price of the house and loan amount with an additional 10% of the price of the house
OR
All the savings in Account II by completing
the KWSP 9C (AHL) form.
For example:
Cost of the
house |
RM 90,000 |
Loan Amount |
RM 70,000 |
Difference
between cost of house and loan amount |
RM 20,000 |
Additional 10%
of the cost of the house |
RM 9,000 |
Amount
eligible for withdrawal |
RM 29,000 |
Balance in
Account II |
RM 20,000 |
Amount which
can be withdrawn |
RM 20,000 |
In the above example, the member can only
withdraw RM20,000 i.e. the balance he or she has in Account II. However, members can
continue to make withdrawals once every five years from Account II to service loan for
their existing house and to reduce or to settle loan residues.
REDUCING/REDEEMING HOUSING LOAN WITHDRAWAL SCHEME
(VIA EPF - ACCOUNT II)
Members can withdraw money from their
Account II to service the balance of their housing loan. Withdrawal can be made every 5
years from the date of the first withdrawal. All you have to do is to fill out the KWSP 9C
(AHL) form.
You can apply if :
- You have an outstanding balance of loan used to buy a
house/shophouse and the mortgage on the house is the first mortgage;
- The withdrawal is for the purpose of decreasing/servicing
the balance of payments for any house which has been bought; and
- You have not reached the age of 55 years during approval of
the application.
You don’t qualify if :
- The application is for house renovation/repair to your
existing property;
- The house is bought in cash but mortgaged for the purpose of
not buying the house; and
- You have taken an overdraft to supplement the purchase of
your house
However, as individual purchaser, you are
entitled to withdraw
- All your savings in Account II; or
- The balance of your housing loan, whichever is lower
For joint purchasers, both parties can take
out
- All their savings in Account II; or
- The balance of their housing loan, whichever is lower
In this case, EPF will process the
application from the first buyer and if the savings is not enough, then EPF will process
the application from the second buyer.
Here is an example :
Cost of house |
RM100,000 |
Balance of
Loan |
RM50,000 |
Savings in
Account II |
RM30,000 |
Amount which
can be withdrawn |
RM30,000 |
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