EPF WITHDRAWAL SCHEME

Generally, the Employees Provident Fund (EPF) consists of 3 accounts, namely Account I, II and III. Account I is a long term savings scheme for retirement & old age security. Account II and III are short term saving schemes and members may withdraw their savings for certain approved purposes.

30% of the member’s contribution is credited into Account II. The housing withdrawal scheme under Account II is for 2 purposes :

• Withdrawals to buy or build a house
• Withdrawals to reduce or settle the balance of a housing loan.

Members can withdraw the difference between the price of the house and loan amount with an additional 10% of the price of the house

OR

All the savings in Account II by completing the KWSP 9C (AHL) form.

For example:

In the above example, the member can only withdraw RM20,000 i.e. the balance he or she has in Account II. However, members can continue to make withdrawals once every five years from Account II to service loan for their existing house and to reduce or to settle loan residues.

REDUCING/REDEEMING HOUSING LOAN WITHDRAWAL SCHEME (VIA EPF - ACCOUNT II)

Members can withdraw money from their Account II to service the balance of their housing loan. Withdrawal can be made every 5 years from the date of the first withdrawal. All you have to do is to fill out the KWSP 9C (AHL) form.

You can apply if :

• You have an outstanding balance of loan used to buy a house/shophouse and the mortgage on the house is the first mortgage;
• The withdrawal is for the purpose of decreasing/servicing the balance of payments for any house which has been bought; and
• You have not reached the age of 55 years during approval of the application.

You don’t qualify if :

• The application is for house renovation/repair to your existing property;
• The house is bought in cash but mortgaged for the purpose of not buying the house; and
• You have taken an overdraft to supplement the purchase of your house

However, as individual purchaser, you are entitled to withdraw

• All your savings in Account II; or
• The balance of your housing loan, whichever is lower

For joint purchasers, both parties can take out

• All their savings in Account II; or
• The balance of their housing loan, whichever is lower

In this case, EPF will process the application from the first buyer and if the savings is not enough, then EPF will process the application from the second buyer.

Here is an example :