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

01.

TO PURCHASE OR BUILD A HOUSE UNDER THE WITHDRAWAL SCHEME

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

Amount eligible to withdraw

Members can withdraw their savings under this scheme as below:

Amount eligible to withdraw

Members can withdraw their savings under this scheme as below:

To apply, the Sale and Purchase Agreement (SPA) as well as the Housing Loan Approval Letter (unless the house was paid for in cash) or Loan Facility Agreement must be submitted at the time of the application. You can walk in to any KWSP office to submit the KWSP 9C (AHL) (D5) Withdrawal Form, along with the supporting documents or submit via postal services.
In most cases, it would mean that you will have to pay for the following upfront costs first and complete the following before applying for a withdrawal:

• Booking fee + Down payment for the house.
• Lawyer fees and stamp duty for the Sale and Purchase Agreement.
• Obtain the at least the letter of approval for the housing loan.

Eligibility for withdrawal

• A Malaysian Citizen / a Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to recontribute to the EPF / A Non Malaysian Citizen who:
• Has become an EPF member before 1 August 1998
• Has obtained a Permanent Resident (“PR”) Status
• Not reached the age 55 at the time EPF receives your application
• Minimum savings balance of RM500 in Account 2
• Withdrawal to purchase the first house.
• Withdrawal to purchase a second house, provided the first house is sold, or disposal of the property has taken place.

The full list of T&Cs plus the necessary supporting documents can be found at KWSP’s website.

02.

WITHDRAWAL SCHEME FOR REDUCING / REDEEMING HOUSING LOAN
This scheme allows applicants to withdraw from their Account II to reduce or redeem their housing loans. Withdrawals can be made once a year.
Terms and conditions
Applicants may apply under this scheme if:

1. There is an outstanding balance of loan for purchasing a house or shop house with a dwelling unit;
2. Applicants who have refinanced their said house are subjected to withdraw the amount of the original housing loan; and
3. Applicants who have not attained the age of 55 from the date of application received by the EPF.
4. Application can be made ONCE A YEAR from the previous housing loan withdrawal date.

Applicants do not qualify under this scheme if:

1. The purpose of withdrawal is for renovation, repair or for extensions of the existing house.
2. Applicants have mortgaged the house to acquire finance for use other than purchasing or building a house.
3. The original housing loan balance is fully settled.

Amount eligible for withdrawal: Applicants can withdraw their savings under this scheme shown below or whichever 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 applications.

Under joint application, EPF will process the application of the 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

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	withdrawal RM 30,000.00

How to apply
Applicants are allowed to apply for the withdrawal under this scheme once a year from the same account from the date of the first withdrawal. Members are required to submit the KWSP 9C (AHL) (D8) form to the EPF.

WITHDRAWAL TO REDUCE OR REDEEMING HOUSING LOAN FOR SPOUSE 
Effective from 2nd January 2001, applicants can withdraw from their account II to reduce or redeem housing loan for their spouse on the condition that:

• They can be both borrowers or  non-borrowers;
• The member need not be a joint owner of the house;
• The house is mortgaged to the financial institution;
• To show proof of marriage

WITHDRAWAL TO REDUCE OR REDEEMING HOUSING LOAN FOR SECOND HOUSE 
Effective from 2nd January 2001, applicants 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.

03.

WITHDRAWAL FOR SECOND HOUSE
Effective from 2nd January 2001, applicants can also withdraw from 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.
Applicants are required to submit documentation of the sale of property such as:

• Memorandum of Transfer (KTN 14A); or
• Title Deed under purchaser's name; or
• Deed of Assignment; or
• Loan Agreement cum Assignment.

04.

WITHDRAWAL TO PAY DOWN HOUSING LOAN MONTHLY INSTALLMENT

This scheme is an addition to the above scheme (Withdrawal to reduce / redeem housing loan) and allows you to set up a standing instruction for money from Account 2 to be directly paid to the bank or even directly credited to the your bank account. Once this has been setup, automatic monthly payments can only be cancelled 1 year after the initial withdrawal by filling in the Withdrawal Cancellation Application Form.

To apply, the latest Housing Loan Balance Statement (no more than 1 months from date of application) must be submitted at the time of application. You can walk in to any KWSP office to submit the KWSP 9P (AHL) Withdrawal Form, along with the supporting documents. The full list of T&Cs plus the necessary supporting documents can be found at KWSP’s website

05.

NEW SCHEME: FLEXIBLE HOUSING WITHDRAWAL

Objective

• The Flexible Housing Withdrawal is a process to ring fence or set aside a part of savings in member’s Account 2 to the Flexible Housing Withdrawal Account to enable the member obtain a higher housing loan amount to purchase/build a house.
• The concept or the facility of the Flexible Housing Withdrawal is to utilise the current and future EPF’s savings/contribution value in consideration of providing loan by the Financial Institution.
• Based on this concept, the monthly contribution to the EPF is considered as an income. Therefore, the member can obtain a higher loan amount since the credit assessment on the net income also takes the EPF contribution into consideration (employee and employer’s share). As a result, the member can purchase/build a house with a higher price since this would enable them to obtain a higher loan to finance the purchase/building a house.

Eligibility

• Basic term
1. The eligibility to apply for Flexible Housing Withdrawal is subject to the member’s eligibility to apply for the Purchase/Build A House Withdrawal under the existing EPF Housing Withdrawal.
2. Applicant is a house purchaser/building a house and has a housing loan.
3. Applicable for only one (1) house unit at any one time, subject to the housing withdrawal eligibility.
4. Minimum savings period of one (1) year.
5. The maximum period is subject to the last date of housing loan or last date of ring fencing the savings or age of 55 (whichever is earlier).

• Citizenship
1. Malaysian citizen.
2. A Malaysian citizen who has made the Leaving in Country Withdrawal before 1 August 2005 and has opted to re-contribute with the EPF.
3. A non-Malaysian citizen who has obtained a PR status.

• Age
1. Has not reached the age of 54 on the date the application is received by the EPF.

• Property and Loan
1. Purchase a residential house (type: bungalow/terrace/semi-detached/apartment/condominium/studio apartment/service apartment/ townhouse/SOHO) or shop lot with residential unit.
2. Build a residential house/village house on own land or owned by spouse.
3. Has a housing loan to purchase/build a house with any of the approved Financial Institution.
   
   You are not eligible if: Buying land or house lot only/Renovate, repair/additional works to the existing house/Purchasing/building a house overseas/Has a loan in the form of overdraft or for the purpose of refinancing.

• Ring Transfer & Transfer Amount
1. The Application amount must not be more than the Housing Loan Amount.
2. Application to transfer the savings in Account 2 can be made as follows:
   • Transfer of existing savings from Account 2 and monthly transfer (according to the fixed amount applied by the member).
   • Monthly transfer (according to the fixed amount applied by the member) only.
3. The monthly fixed transfer amount cannot be changed and will remain according to the amount selected during application.