EPF

Withdrawal to Purchase a House

PURPOSE

This withdrawal allows you to utilize 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.
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 utilizing 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'.

APPLICATION ELIGIBILITY

(i) A Malaysian Citizen; OR
(ii) A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF; OR
(iii) A Non-Malaysian Citizen who:

Has became an EPF before 1 August 1998, OR
Has obtained a Permanent Resident (PR) status.

You have not reached the age 55 at the time the EPF receives your application; AND
You have a minimum savings balance of RM500.00 in your Account 2.

Terms Of Withdrawal
You are eligible to apply if you:

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:

(i) Housing loan from any of the following institutions:

        • Financial Institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA);
        • Central / State government or any other government financial agencies;
        • Member’s employers;
        • Cooperatives / Cooperative Companies with license (approved by Cooperative Development Department, Ministry of Entrepreneur and Co-operative Development)
        • Licensed insurance companies as approved by the Central Bank of Malaysia;
        • Loan providers as allowed by the EPF; OR

(ii) Cash.

3. The date of the Sale and Purchase agreement is not more than three (3) years at the time your application is received by the EPF.

4. You have never made a Housing Withdrawal; OR you have made a withdrawal to purchase your first house and have sold the house or disposal of ownership has taken place and now you intend to build your second house. Proof of sale / disposal of ownership of the first house must be submitted to the EPF.

5. You want 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. You have 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).

You are not eligible to apply if you:

•    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.

For more information log on to http://www.kwsp.gov.my/