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Conditions for Withdrawal to Buy a House
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- You are a:
- Malaysian citizen or a Permanent Resident;
- Malaysian citizen who has withdrawn your savings under Leaving The Country Withdrawal before 1 August 1995 but subsequently returned and re-contribute to EPF ; or
- Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1 August 1998
- Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1 August 1998.
- You still have savings in Account II.
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Calculate Withdrawal Eligibility
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- For housing-related purposes, withdrawal can be made from Account II of EPF savings. These include withdrawals to buy or build a house as well as to reduce housing loans.
- The exact amount for withdrawal is based on three factors, namely:-
- Balance in Account II
- Balance of housing loan, and
- Price of the house you are buying or building
- For individual purchases or house constructions, you may withdraw the lower of: balance in your Account II or the difference between price of house and housing loan, with additional 10% of price (or construction cost) of house.
- If full housing loan (100 %) is obtained, or paid by cash (ie.no housing loan involved), withdrawal is up to 10 per cent of price (or cost of construction) of house, subject to balance in Account II.
- Formula is similar in case of joint withdrawals – where the house is purchased (or constructed) jointly with spouse, family members or other individuals.
- Only difference is that total amount of available balances in each applicant’s Account II is taken into consideration instead of only your own.
- For withdrawal to reduce housing loan (your own or your spouse’s), withdrawal is allowed for all savings in Account II or the balance of loan, whichever is lower.
- For joint purchases, allowable amount to withdraw is either balance of housing loan or all savings in Account II of each applicant, whichever is lower.
- Minimal withdrawal is RM500.
- In any of the cases above, you can also determine the amount you wish to withdraw from your savings in Account II, subject to the maximum amount eligible for withdrawal. For this matter, the "Surat Akujanji Pilihan Amaun Pengeluaran" must be completed.
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Amount Eligible to Withdraw
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- Malaysian citizens or holder of Permanent residence status are eligible to make housing related widrawals. Expatriate members, who became a member of the EPF before 1 August 1998, are also eligible.
- Malaysian citizens who have withdrawn savings under the Leaving the Country Withdrawal scheme before 1 August 1995, but subsequently elected to re-contribute to EPF.
- Must have remaining balance in Account II and have not reach 55 years of age at the time appication is received.
- If withdrawal is specifically meant to reduce housing loans, must have at least RM500 balance in Account II.
- However, there are other conditions related to type of houses you are buying or building, as well as source of financing obtained for that purpose that must be met before becoming eligible.
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Terms & Procedures
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Note: All the above information has been extracted and simplified from the EPF Guideline for easy reference. For further information, kindly refer to the EPF website at www.kwsp.gov.my
