EPF (KWSP) Housing Withdrawal

To Purchase or Build a House Withdrawal Scheme

This scheme allows members to withdraw from their account II to purchase or build a house or shophouse with dwelling unit.

Amount eligible to withdraw
Members can withdraw their savings under this scheme as below, which ever is lower:
the difference between the price of the house and the housing loan with an additional 10% of the price of the house, or the balance amount in account II.
Example:
Price of the House RM 75,000.00
1. Housing Loan RM 60,000.00
2. Difference Between The Price of the House and Housing Loan RM 15,000.00
3. Additional 10% of the Price of the house RM 7,500.00
4. Amount Eligible for Withdraw RM 22,500.00
5. Balance in Account II RM 18,000.00
Amount Can Be Withdrawn RM 18,000.00


For this case, the member can only withdraw RM18,000.00, which is the balance in Account II. How to apply Members are required to submit KWSP 9C (AHL) form together with the necessary supporting documents.

Members are also allowed to apply under the Reducing or Redeeming Housing Loan Withdrawal Scheme for the same house every three years.

Withdrawal Scheme for Redusing / Redeeming Housing Loan

This scheme allows members to withdraw from their Account II to reduce or redeem their housing loans. Withdrawal can be made once in every three years.

Terms and condition Member may apply under this scheme if:
  • There is an outstanding balance of loan for purchasing a house or shophouse with dwelling unit;
  • Members who have refinanced their said house are subjected to withdraw the amount of the original housing loan; and member has not attained the age of 55 from the date of application received by the EPF. 
Members do not qualifies under this scheme if:
  • The purpose of withdrawal is for renovation, repair or other extension of the existing house.
  • Member mortgage the house to acquire finance for the purpose of other than to purchase or build a house.
Amount eligible for withdrawal Members can withdraw their savings under this scheme as below or which ever is lower:
  • For individual application
    total outstanding balance of the loan; or
    balance amount in Account II.
     
  • For joint application
    total outstanding balance of the loan, or
    balance amount in Account II for both Application.
     
  • Under joint application, EPF will process the application of first purchaser. If the amount is insufficient, EPF will proceed to process the second purchaser.
Example Individual Application
Price of the House RM 75,000.00  
Housing Loan  RM 67,500.00 
Outstanding Balance  RM 31,500.00 
Balance in Account II  RM 15,000.00 
Amount eligible for withdrawal 
 
RM 15,000.00
 
Example Joint Application  
Price of the House  RM180,000.00
Housing Loan  RM140,000.00
Outstanding Balance  RM 98,500.00
Balance in Account II RM 20,000.00
Balance in Account II  RM 10,000.00
Amount eligible for withdrawal
 
RM 30,000.00
How to apply  
Members are allowed to apply for the withdrawal under this scheme every three years from the date of the first withdrawal from the same account. Members are required to submit KWSP 9C(AHL) form to the EPF.
 
Withdrawal to Reduce or Redeeming Housing Loan for House  

Effective from 2nd January 2001, members can withdraw from their account II to reduce or redeem housing loan for their spouse on the condition that:

  • They are non-borrowers;
  • They are registered as co-owners;
  • The house is mortgaged to the financial institution.
Withdrawal to Reduce or Redeeming Housing Loan for Second House  

Effective from 2nd January 2001, members can also withdraw to reduce or redeeming housing loan for their second house on condition that the first house, which was funded from their EPF savings has been sold.

For more information, please visit or call the nearest EPF office. Any queries can be sent to the EPF via e-mail. 

Withdrawal for Second House

Effective from 2nd January 2001, members can also withdraw from their account II to purchase or build their second house on condition that the first house, which was funded from their EPF savings, has been sold.

Members are required to submit documentation of the sale of property such as:
  1. Memorandum of Transfer (KTN 14A); or
  2. Title Deed under purchaser's name; or
  3. Deed of Assignment; or
  4. Loan Agreement cum Assignment.


If the house purchased or built before 2nd January 2001, members can only withdraw to reduce or redeem their housing loan only.

 

Kumpulan Wang Simpanan Pekerja (Employees Provident Fund)
Address : Bangunan KWSP, Jalan Raja Laut , 50350 Kuala Lumpur
Email : enquiry@epf.gov.my
Website : http://www.kwsp.gov.my 

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