EPF Guideliness

EMPLOYEES PROVIDENT FUND (“EPF”) WITHDRAWAL PROCEDURE

% of distribution from monthly contribution Account 1 Account 2
70% 30%
Purpose of Account Savings for retirement.
This savings cannot be withdrawn before you attain the age of 55.
  • To own a house.
  • To finance you and your children’s education.
  • For medical expenses.
  • Upon attaining the age of 50.

Purpose:

  • This withdrawal allows you to utilise your savings from Account 2 to partially finance your purchase of a house individually or jointly with your spouse or close family members, namely parents or siblings.
  • Buying of a house with another individual who has no kinship is allowed provided that the other individual is a buyer and borrower
  • This withdrawal allows you to buy a house from a developer or an individual or through a public auction.
  • EPF withdrawal to purchase a second house is allowed after the first house purchased utilising EPF has been sold or disposal of ownership of property has taken place. Disposal of ownership refers to “loss of ownership of the first house owned by you either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase.”

Types of residential housing withdrawals:

  • To purchase or build a first house.
  • To purchase or build a second house.
  • To reduce or redeem the housing loan for first house.
  • To reduce or redeem the housing loan for second house.
  • To assist spouse to reduce or redeem his/her housing loan.
House purchase for an individual Joint purchase with spouse or other individual
The difference between the house price and the loan amount plus an additional 10% of the house price The difference between the house price and the loan amount plus an additional 10% of the house price
All your savings in Account 2 (Whichever is lower but not less than RM500.00)
100% House loan
10% of the house price
All the savings in each purchaser’s Account 2 subject to maximum amount eligible for withdrawal (Whichever is lower but not less than RM 500.00)
Cash purchase
Price of the house with an additional 10% of the house price
All your savings in Account 2
(Whichever is lower but not less than RM500.00)
All your savings in Account 2
(Whichever is lower but not less than RM500.00)

To purchase or build a second house.

  • Members are allowed to withdraw their EPF savings for a second time to purchase another house on condition that members have sold (not in possession) the first house purchased through EPF withdrawal.

To reduce or redeem the housing loan for first house.

  • Application for withdrawal can be made once every year from the date of the last housing withdrawal, with a minimum amount of RM500, but subject to showing proof of sale or not in possession of the first house to EPF.

To assist spouse to reduce or redeem his/her housing loan.

  • Members are allowed to withdraw all money from Account 2 or the difference between the purchase price and loan amount, whichever is lower, to assist their spouse to reduce or redeem the housing loan even though they are not the borrower.
    NOTE: The member need not be a joint owner of the house, the condition of withdrawal include the proof of marriage.

 

Cash purchase from developer
  • A confirmation letter from the developer stating that purchase is by cash.
  • Proof of payments of at least 20% of the price of the house.
  • Architect’s Certificate to confirm progress of construction is not less than 20%.

Eligibility

  • A Malaysian Citizen/A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF/A Non-Malaysian Citizen who:
    • Has become an EPF member before 1 August 1998.
    • Has obtained a Permanent Resident (“PR”) status.
  • You have not reached the age 55 at the time the EPF receives your application.
  • You have a minimum savings balance of RM500.00 in your Account 2.

Procedure

  • Submission of EPF withdrawal form [Form KWSP 9C(AHL)]
  • The original copy of the SPA.
  • Photocopy of your Identification Card.
  • A copy of the letter of loan approval from your end-financier.
  • Proof of relationship (This is for joint purchase involving spouse or next-of-kin namely parents or siblings. For joint purchase involving next-of-kin, the member is required to submit an explanation letter stating the reason for the joint purchase).

Note: The original SPA Letter of Loan Approval from your end-financier and your original Identification Card have to be sighted by the EPF officials.


NEW SCHEME: FLEXIBLE HOUSING WITHDRAWAL

Objective

  • The Flexible Housing Withdrawal is a process to ring fence or set aside a part of savings in member’s Account 2 to theFlexible Housing Withdrawal Account to enable the member obtain a higher housing loan amount to purchase/build a house.
  • The concept or the facility of the Flexible Housing Withdrawal is to utilise the current and future EPF’s savings/contribution value in consideration of providing loan by the Financial Institution.
  • Based on this concept, the monthly contribution to the EPF is considered as an income. Therefore, the member can obtain a higher loan amount since the credit assessment on the net income also takes the EPF contribution into consideration (employee and employer’s share). As a result, the member can purchase/build a house with a higher price since this would enable them to obtain a higher loan to finance the purchase/building a house.

Eligibility

  • Basic Term
    • The eligibility to apply for Flexible Housing Withdrawal is subject to the member’s eligibility to apply for the Purchase/Build A House Withdrawal under the existing EPF Housing Withdrawal.
    • Applicant is a house purchaser/building a house and has a housing loan.
    • Applicable for only one (1) house unit at any one time, subject to the housing withdrawal eligibility.
    • Minimum savings period of one (1) year.
    • The maximum period is subject to the last date of housing loan or last date of ring fencing the savings or age of 55 (whichever is earlier).
  • Citizenship
    • Malaysian citizen.
    • A Malaysian citizen who has made the Leaving in Country Withdrawal before 1 August 2005 and has opted to re-contribute with the EPF.
    • A non-Malaysian citizen who has obtained a PR status.
  • Age
    • Has not reached the age of 54 on the date the application is received by the EPF.
  • Property and Loan
    • Purchase a residential house (type: bungalow/terrace/semi-detached/apartment/condominium/studio apartment/service apartment/ townhouse/SOHO) or shop lot with residential unit.
    • Build a residential house/village house on own land or owned by spouse.
    • Has a housing loan to purchase/build a house with any of the approved Financial Institution.
      You are not eligible if: Buying land or house lot only/Renovate, repair/additional works to the existing house/Purchasing/building a house overseas/Has a loan in the form of overdraft or for the purpose of refinancing.
  • Property and Loan
    • Purchase a residential house (type: bungalow/terrace/semi-detached/apartment/condominium/studio apartment/service apartment/ townhouse/SOHO) or shop lot with residential unit.
    • Build a residential house/village house on own land or owned by spouse.
    • Has a housing loan to purchase/build a house with any of the approved Financial Institution
  • Ring Finance & Transfer Amount
    • The Application amount must not be more than the Housing Loan Amount.
    • Application to transfer the savings in Account 2 can be made as follows:
      1. Transfer of existing savings from Account 2 and monthly transfer (according to the fixed amount applied by the member).
      2. Monthly transfer (according to the fixed amount applied by the member) only.
    • The monthly fixed transfer amount cannot be changed and will remain according to the amount selected during application.

HOW TO APPLY
FIRST TIME APPLICATION

No. Withdrawal Status Required Documents by EPF
1. Member has never made Withdrawal to Purchase/Build a House or Withdrawal to Reduce/Redeem Housing Loan.
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
2. Member has made Withdrawal to Purchase/Build a House or Withdrawal to Reduce/Redeem Housing Loan BUT has lost ownership of the house.
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
    3. Document/Proof of Loss of Property Ownership
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
3. Member has made Withdrawal to Reduce Housing Loan for Spouse and/or Housing Loan Monthly Instalment Withdrawal.
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)
4. Member has made Withdrawal to Purchase/Build a House or Withdrawal to Reduce/Redeem Housing Loan. Member is not eligible for Flexible Housing Withdrawal

SECOND TIME AND SUBSEQUENT APPLICATION

No. Type of Property Required Documents by EPF
1. Same Properties
  1. Cancellation of Flexible Housing Withdrawal
    1. Form KWSP 9Q(2)
  2. Withdrawal to Reduce/Redeem Housing Loan
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
  3. Flexible Housing Withdrawal
    1. Form KSWP 9Q(1)
2. Different Properties
  1. Withdrawal to Purchase/Build a House
    1. Form KWSP 9C(AHL)
    2. Bank Loan Verification Letter
    3. Document/Proof of Loss of Property Ownership
  2. Flexible Housing Withdrawal
    1. Form KWSP 9Q(1)

For more information, please contact:

Kumpulan Wang Simpanan Pekerja
Bangunan KWSP, Jalan Raja Laut, 50350 Kuala Lumpur.
Tel: (603) 2694 6566      Email: enquiry@epf.gov.my
Fax: (603) 2694 8433     Website: www.kwsp.gov.my