Guidelines for Homebuyers
Sale and Purchase of Houses
Withdrawal EPF to Purchase a House
Difference Between Leasehold and Freehold Tenures
Mortgage Reducing Term Assurance (MRTA)
Malaysia My Second Home Programme (MM2H)
About Penang
WITHDRAWAL EPF TO PURCHASE A HOUSE

Source: Kumpulan Wang Simpanan Pekerja


This withdrawal allows you to withdraw your savings in Account II to partially finance the purchase of a house either via:

Individual purchase; or

Joint purchase with spouse, family members or other individuals.


This withdrawal also allows you to purchase a house from a developer, an individual or public auction.


Your EPF Account is where all your monthly contributions and that from your employer are credited into.


Effective 1 January 2007, the Account is divided into two parts, namely Account I and Account II. Contributions received on your behalf from your employer will be credited into the two accounts. These accounts are created for different purposes, and different types of withdrawals are applicable on each accounts:


1. Account I - 70% of monthly contribution

Savings in this account is meant to be used for your retirement, and it cannot be fully withdrawn before you reach the age of 55, become incapacitated, leave the country or deceased (payment will be made out to your nominee / heir).
You are allowed to invest part of this savings to allow you to add the value of your savings.


2. Account II - 30% of monthly contribution

Savings in this Account is meant to help you to make early preparations for a comfortable retirement. Withdrawals are allowed for the purposes of:

Attaining the age of 50 years;

Owning a house - the downpayment for your first house;

Settling the balance of your housing loan - first house;

Financing education for you and that of your children's;

Medical expenses for you and that of your children's


The EPF will not consider application for withdrawal from any account for purposes other than those stated in the current law as cited in the EPF Act 1991; EPF Rules and Regulations 1991; and EPF Circular and Procedure.

Withdrawal Eligibility

You are eligible to apply if you are:

A Malaysian citizen; or

A Permanent Resident; or

A Malaysian citizen who have withdrawn your savings under Leaving The Country

Withdrawal before 1 August 1995 but subsequently returned and re-contribute to EPF; or

A Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1

August 1998.


You need to have savings in your Account II and you must also have not reached 55 years of age on the date the application is received by the EPF.

Conditions of Withdrawal

Conditions of withdrawal to purchase a house are as follows:

You have purchased a house (house types: bungalow / terrace / semi-detached / flat /

condominium / apartment / studio apartment / service apartment / town house) or a
shop house with a dwelling unit; and

You financed the purchase of the house by obtaining a housing loan from any financial

institution approved by the EPF
OR
You purchased the house by cash; and

You have executed the Sales and Purchase Agreement not more than three years

from the date the application is received by EPF; and

You have never made Housing Withdrawal

OR
You are buying a second house - You have previously made Housing Withdrawal but have since sold the house and subsequently purchased another house. You must produce the proof of sale of the first house; and

You wish to purchase a house by way of hire purchase from any authority authorised

by the EPF.

You purchased a piece of land and built a house on it simultaneously (the date of

Land Purchase Agreement with the House Construction Agreement must be within 6 months).


However, you are not eligible to withdraw for the purpose of:

Purchasing a piece of land or a housing lot only.

Renovating, repairing or make extension works to an existing house.

Amount Eligible to Withdraw

You can withdraw your savings based on the following, whichever is lower:

Individual Purchase:

The difference between the price of the house and the housing loan
with an additional 10% of the price of the house.
OR
All balance available in Account II.

Joint Withdrawal with Spouse, Family Members or Other Individuals Purchase:

The difference between the price of the house and the housing loan
with an additional 10% of the price of the house.
OR
All balance available in Account II of all applicants subject to the maximum eligible amount as stated above.


If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house OR all balance available in Account II, whichever is lower.


If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house OR all balance available in Account II, whichever is lower.


You can choose to determine the amount you wish to withdraw from your savings in Account II, subject to the maximum amount you are entitled to withdrawal by completing "Surat Akujanji Pilihan Amaun Pengeluaran".

Example 1: Purchase from Individuals

Encik Sallehuddin purchased a house costing RM75,000 and obtained a housing loan of RM60,000. His total EPF savings in Account II is RM40,000. Therefore the amount of savings that he can withdraw is:

DETAILS
AMOUNT (RM)
Price of The House 75,000.00
Housing Loan 60,000.00
Difference Between Price of The House and Housing Loan 15,000.00
Additional 10% of The Price of The House 7,500.00
Maximum Amount Eligible For Withdrawal 22,500.00
Available Balance in Account II 40,000.00
The Amount That Can Be Withdrawn 22,500.00

Since the maximum amount he is eligible to withdraw is lower than his total savings in Account II, Encik Sallehuddin can withdraw RM22,500 only.

Example 2: Individual Purchase by Cash

Encik Amirul purchased a house costing RM125,000. He did not take any housing loan to finance the purchase. He has paid RM35,000 to the developer. His total savings in Account II is RM60,000.

DETAILS
AMOUNT (RM)
Price of The House 125,000.00
Housing Loan NIL
Difference Between Price of The House and Housing Loan 125,000.00
Additional 10% of The Price of The House 12,500.00
Maximum Amount Eligible For Withdrawal 137,500.00
Available Balance in Account II 60,000.00
The Amount That Can Be Withdrawn 60,000.00

Since Encik Amirul only has RM60,000 in his Account II, he can withdraw all of his savings in Account II.

Example 3: Joint Purchase

Encik Amir and Puan Syuhada purchased a house costing RM100,000 and they obtained a housing loan of RM100,000. Encik Amir has RM20,000 in his Account II while Puan Syuhada has RM3,600 only in her Account II.

DETAILS
AMOUNT (RM)
Price of The House 100,000.00
Housing Loan 100,000.00
Difference Between Price of The House and Housing Loan NIL
Additional 10% of The Price of The House 10,000.00
Maximum Amount Eligible For Withdrawal By The Couple 10,000.00
Available Balance in Account II for Encik Amir 20,000.00
Available Balance in Account II for Puan Syuhada 3,600.00
The Amount Chosen To Be Withdrawn By Encik Amir 7,000.00
The Amount That Can Be Withdrawn By Puan Syuhada 3,000.00
The Amount That Can Be Withdrawn By The Couple 10,000.00

Since both members obtained 100% housing loan, the maximum amount that can be withdrawn by this couple is 10% of the price of the house only, i.e. RM10,000 to cover for side cost. Applications will be processed according to the amount they choose to withdraw respectively, by completing the "Surat Akujanji Pilihan Amaun Pengeluaran".

Example 4: Purchase Of A Housing Lot And Building A House On It Simultaneously

Encik Nasaruddin purchased a piece of land costing RM80,000 on 1st January 2005 and obtained a loan of RM70,000 to finance the purchase. On 1st May 2005, he signed an agreement to build a house on the said land with a total construction cost of RM200,000. He obtained a housing loan of RM100,000 to build the house. The calculation for withdrawal by Encik Nasaruddin is as follows:

DETAILS
AMOUNT (RM)
Price of The Land 80,000.00
Cost of Construction of The House 200,000.00
Total Price of The Land and Cost of Construction of The House 280,000.00
Total Housing Loan To Purchase The Land and To Build The House 170,000.00
Difference Between The Price of The Land and Cost of Construction of The House with The Total Housing Loan 110,000.00
Additional 10% of The Total Price of The Land and Cost of Construction of The House 28,000.00
Maximum Amount Eligible For Withdrawal 138,000.00
Available Balance in Account II 150,000.00
The Amount That Can Be Withdrawn 138,000.00

Since both members obtained 100% housing loan, the maximum amount that can be withdrawn by this couple is 10% of the price of the house only, i.e. RM10,000 to cover for side cost. Applications will be processed according to the amount they choose to withdraw respectively, by completing the "Surat Akujanji Pilihan Amaun Pengeluaran".

How To Apply - Section A (Submission at Counter)

Members are required to complete Form KWSP 9C (AHL) and to submit this form together with the following documents, whichever is applicable:


1. Purchase from Developer or Public Auction

Application can be submitted at the EPF counter or by post (read Section B).


Submission at Counter

You need to produce:

Completed KWSP 9C (AHL) form

Supporting documents (original and photocopy)

Identification Card / Military Identification Card /MyKad

OR

Police Identification Card affixed with your right and left thumbprint impressions on its

copy and Certifying Letter from your employer confirming that your police number and Identification Card number refer to the same person;

Personal Savings Account Passbook / Statement or Personal Current Account

Statement which is still active; (To be certified by authorised EPF Officer or relevant Bank Officer);

Sales and Purchase Agreement (purchase from developer) or Proclamation of Sale

(purchase from public auction) containing your name or the names of all applicants for joint purchase that is executed not more than 3 years from the date the application is received by the EPF;


If you have obtained a housing loan, the following documents are required:

Housing Loan Approval Letter (if the loan approval is less than one year)

OR

Housing Loan Approval Letter and Housing Loan Agreement / Mortgage Form 16A (if

the loan approval has been more than one year).


If you self-financed the purchase of the house, the following additional documents are required:

Purchase from Developer
Purchase from Public Auction
Letter from the developer confirming the purchase paid in cash; and Letter from the developer confirming the purchase paid in cash; and
Proof of payment of at least 20% from the price of the house; and Proof of payment of at least 20% from the price of the house; and
Architect Certificate with not less than 20% of construction progress.

Transfer of ownership documents

Form KTN 16F ('Perakuan Jual

Oleh Mahkamah')
OR

Form KTN 16I ('Perakuan Jual

Oleh Pentadbir Tanah)
OR

Deed of Assignment in your name

OR

Form KTN 16F/ 16I/ Deed of

Assignment which has not been processed by the Land Office AND Declaration Letter from you to produce the above-mentioned transfer of ownership document (duly completed) within 6 months.

2. Purchase from Individuals

Application can be submitted at the EPF counter or by post (read Section B).


Submission at Counter

You need to produce:

Completed KWSP 9C (AHL) form

Supporting documents (original and photocopy)

Identification Card / Military Identification Card /MyKad

OR

Police Identification Card affixed with your right and left thumbprint impressions on its

copy and Certifying Letter from your employer confirming that your police number and Identification Card number refer to the same person;

Personal Savings Account Passbook / Statement or Personal Current Account

Statement which is still active; (To be certified by authorised EPF Officer or relevant Bank Officer);

Sales and Purchase Agreement (purchase from developer) or Proclamation of Sale

(purchase from public auction) containing your name or the names of all applicants for joint purchase that is executed not more than 3 years from the date the application is received by the EPF;


If you have obtained a housing loan, the following documents are required:

Housing Loan Approval Letter (if the loan approval is less than one year)

OR

Housing Loan Approval Letter and Housing Loan Agreement / Mortgage Form 16A (if

the loan approval has been more than one year).

Deed of title as the following:

Individual / Strata
Title Has Been Issued
Individual / Strata
Title Has Not Been Issued

Deed of Title in the name of the seller AND Letter of consent of transfer issued by the Land Office (if there is restriction on the property);
OR
Deed of Title in your name ;
OR
Duly completed Form KTN 14A by the Land Office in your name.

Letter of consent of transfer from the developer AND Letter of consent of transfer issued by the Land Office / Local Authority (if there is restriction on the property);
OR
Deed of Assignment in your name.

If you self-financed the purchase of the house, the following additional documents are required:

Letter from the lawyer in charge of the sale and purchase confirming the purchase

paid in cash;

Proof of payment of at least 20% of the price of the house; and

If Form KTN 14A or Deed Of Assignment in your name as mentioned above has not

been processed by the Land Office, the following documents are required:

Individual / Strata
Title Has Been Issued
Individual / Strata
Title Has Not Been Issued

Form KTN 14A in your name,

which has not been processed by the Land Office
AND

Receipt of Submission ("Penyata

Perserahan") from the Land Office
AND

Declaration Letter from you to

produce the duly completed Form KTN 14A within 6 months.

Form Deed Of Assignment which

has not been processed
AND

Declaration Letter from you to

produce the duly completed Deed of Assignment within 6 months.

3. Purchase of Land and Construction of a House as a Package

Application can be submitted at the EPF counter or by post (read Section B).


Submission at Counter

You need to produce:

Completed KWSP 9C (AHL) form

Supporting documents (original and photocopy)

Identification Card / Military Identification Card /MyKad

OR

Police Identification Card affixed with your right and left thumbprint impressions on its

copy and Certifying Letter from your employer confirming that your police number and Identification Card number refer to the same person;

Personal Savings Account Passbook / Statement or Personal Current Account

Statement which is still active; (To be certified by authorised EPF Officer or relevant Bank Officer);

Sales and Purchase Agreement (purchase from developer) or Proclamation of Sale

(purchase from public auction) containing your name or the names of all applicants for joint purchase that is executed not more than 3 years from the date the application is received by the EPF;


If you have obtained a housing loan, the following documents are required:

Housing Loan Approval Letter (if the loan approval is less than one year)

OR

Housing Loan Approval Letter and Housing Loan Agreement / Mortgage Form 16A (if

the loan approval has been more than one year).

House Construction Agreement containing your name or the names of all applicants

for joint withdrawal and that is executed not more than 3 years on the date the application is received by the EPF;

Sales and Purchase of Land Agreement containing your name or the name of all

applicants for joint withdrawal and the date of agreement is within 6 months with the House Construction Agreement;

Deed of Title of the land in the name of the seller/ developer; or

If the Deed Of Title still in the name of the land owner, the following documents must

be produced:

- Power of Attorney that has been registered with the court, if the purchase of land

and house construction is made through Power of Attorney; and

- Deed of Title of the land.


If you self-financed the purchase of the house, the following documents are required:

Letter from the developer confirming the purchase paid in cash;

Proof of payment of at least 20% of the price of the house; and

Architect Certificate with not less than 20% of construction progress.

4. Purchase of Second Hourse

Application can be submitted at the EPF counter or by post (read Section B).


Submission at Counter

You need to produce:

Completed KWSP 9C (AHL) form
Supporting documents (original and photocopy) where relevant depending on the type

of purchase (whether purchase from developer or public auction, purchase from individuals, or purchase of land and construction of house simultaneously as a package);

One of the following documents as the proof of sale of the first house:
Transfer of ownership document Form KTN 14A duly completed by the Land Office;
Deed of Assignment between you and the purchaser;
Deed of Title in the name of the purchaser AND Sales and Purchase Agreement

between you and the purchaser;

Real Property Gains Tax Form (CKHT 5) AND Sales and Purchase Agreement

between you and the purchaser;

Public Auction Form (KTN 16F or KTN 16I) AND confirmation from the bank;

Transfer of property ownership through a Court Order to any party AND Divorce Papers

(for divorced cases); or

Official Search from the Land Office showing your name and the new owner AND

Sales and Purchase Agreement between you and the purchaser.

How To Apply - Section B (Submission by Post)

Application can be submitted at the EPF counter (read Section A) or by post.


Submission By Post

You are required to produce the completed KWSP 9C (AHL) Withdrawal Form along with photocopies of the said documents mentioned above certified by certifying officers authorised by the EPF.


Applications can be sent to:


The Employees Provident Fund
Locked Bag No. 220,
Jalan Sultan,
46720 Petaling Jaya,
Selangor, Malaysia.


* You are required to furnish your full address in Form KWSP 9C (AHL). Any change of address after submitting this application must be notified to the nearest EPF office.

Certifying Officer

Officers authorised by the EPF to certify supporting documents to application form are as follows:

EPF Officer:
- EPF Officer (Grade 18 and above)
- EPF Main Counter Duties
Applicant's employer
Justice Of The Peace
Penghulu/Penggawa
Registered medical practitioner
Advocates and Solicitors
Government officers (professional Group)
State Assemblyman
Member of Parliament
Commissioner of Oath

Mode of Payment

All withdrawal payments will be credited directly into your bank account subject to the following conditions :-

You have a bank account with any panel of banks appointed by EPF ;
Your bank account is still active ; and
Your bank account is a Personal Savings/Current Bank Account OR a Joint Account

(for withdrawal payment above RM100,000 only).


However, if the EPF is unable to credit the payment into your bank account due to reasons such as your bank account is not active or your Personal Identification number does not match, you will be paid by banker's cheque.


(For more information regarding direct payment to your bank account and the list of banks appointed by EPF, please refer to Direct Crediting Into Member's Bank Account System)


* After making this withdrawal, you are eligible to withdraw your savings to reduce/redeem the housing loan for the same house once a year. For further information, please refer to Reduce/Redeem Housing Loan Withdrawal.

Enquiry

If you have any enquiry or problem relating to your withdrawal application, please contact the nearest EPF Office or the EPF Customer Service Department as follows:


Customer Service

Tel: 603.8732.6000
E-mail: enquiry@epf.gov.my
Website: http://www.kwsp.gov.my

Note: Dream House Properties takes no responsibilities for any mistakes made above and does not

guarantee the accuracy of the information provided.