Presently, many Malaysians are in pursuit of homeownership but the soaring cost of properties is making that dream increasingly unaffordable.
Did you know that you can finance the purchase of a house through a withdrawal from Account 2 of your EPF Account?
Most Malaysians are unaware of the fact that they can utilise their EPF funds to own a home. Let us explain this further by understanding your Account 2 of your KWSP funds and the withdrawals you make in order to buy a house or make other investments.
1. Malaysian &Non-Malaysians
2. Below 55 years of age
3. At least RM500 in Account 2
4. Purchasing residential home
5. Approved loan from recognised borrowers OR through rent-to-own schemes OR
Conditions of Withdrawal from EPF Account 2
1. Amongst the types of residential homes you can purchase include bungalows,
terrace house, semi-detached houses. apartments, condominiums, studio
apartments, service apartments, townhouses, SOHOs, or a shop lot with a
residential unit from a developer in Malaysia
2. There are also specific Certified financial institutions under the Financial
Services Act 2013 or Islamic Financing 2013 which you can make these transactions
which consist of:
- Central/State Government or any other government financing institutions
- Member& employer
- Licensed Corporation/Cooperative bodies (approved by SKM)
- Insurance Companies licensed by Bank Negara or other EPF recognised loan providers
- Rent-to-own schemes are only allowed with State Government loan providers.
3. The Sale & Purchase Agreement must not exceed more than 3 years from the
date of EPF application.
4. Lastly, you must have previously never made a housing withdrawal/have made
housing withdrawal before but have sold/disposed of the property.
Categories of Withdrawal
1. Individual withdrawal Housing Loan Difference between purchase price and approved loan amount + 10% of the purchase price OR Entire savings in Account 2 (whichever is lower) Self-Financing The purchase cost + additional 10% OR Entire savings in Account 2 (whichever is lower)
2. Joint withdrawal with your spouse/family member Housing Loan Difference between purchase price and approved loan amount + 10% of the purchase price OR Applicant& entire savings in Account 2 (whichever is lower) Self-Financing The purchase cost + additional 10% OR Applicant& entire Account 2 savings (whichever is lower)
You will not be eligible if you are:
- Purchasing land or a land lot
- Conducting renovation, repairs or additional modifications to your current
- Already own property from previous sale and/or purchase transactions;
- Applying for a loan with an overdraft facility
- Purchasing a third house
- Purchasing foreign property
Method of Payment
1. Local Payments
Full payment in Ringgit Malaysia (RM) will be credited to your account with the
- you must hold an active account with a panel bank
- your identification number matches the bank records
- If payment to your account is unsuccessful, you will be issued a banker & cheque
2. Overseas Payment
Full payment in your preferred currency will be made through oversea bank draft with
the following conditions:
- your preferred currency is in the accepted currency list
- If your preferred currency is not in the accepted currency list, full payment in US Dollar (USD) will be made through oversea bank draft
1. Form KWSP 9C (AHL) and Checklist
2. Form KWSP 3 – for mail submissions/failed thumbprint verification
3. Copy of identification documents with original for verification (Non-MyKad holders only)
4. Sales and Purchase Agreement – not more than 3 years from the date of application
5. Passbook or copy of your bank account statement (for verification purposes)
6. Copy of Bank Statement with original for verification
1. Home loans or financing features may vary for your 1st and 2nd home. So, it is crucial to compile all the required documents to ensure a smooth application process
2. You may refer to the list of documents required by EPF at the EPF Website.
3. EPF reserves the right to request for any additional documents, so do look into the
specific requirements set by EPF to Owning a Home.
Once you have resolved all that is required by the authorities of EPF, you may commence your hunt for your first home! Our dedicated team at hartabumi wishes to spread the message that it doesn’t have to be a high rise condominium, a flat can be a home too.
Let us help you find your dream home with our listings of the best property deals just for you. Find your home with us HERE