EPF Withdrawal to Purchase a House

Below are the guidelines to withdraw account 2 of EPF savings to finance the purchase of a house.

Application eligibility:

• Applicant can withdraw housing loan for ONE house only. If the withdrawal is to purchase for second house, the first house must be sold or the disposal of ownership of the first property has taken place.
• A Malaysian Citizen, or Malaysian Citizen who has made Leaving the Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF.
• A Non-Malaysian Citizen who has become an EPF member before 1 August 1998, or has obtained a Permanent Resident status (PR).
• You have not reached 55 years of age at the time the EPF received your application.
• There is at least RM500 of savings in Account 2.

Terms of Withdrawal:

• Buying or building a residential house (type: bungalow / terrace / semi-detached / apartment / condominium / studio apartment / service  apartment / townhouse / SOHO) or a shop lot with residential unit.
• The purchase of property is finance through:
  • Financial Institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA) 
  • Central / State government or any other government financial agencies 
  •  Member’s employers 
  • Cooperatives / Cooperative Companies with license (approved by Malaysian Cooperative Commission, Ministry of Entrepreneur and Cooperative Development) 
  • Licensed insurance companies approved by the Central Bank of Malaysia 
  • Loan providers allowed by the EPF
• Or, the property is through cash purchase
• Signing of Sale and Purchase agreement shall not more than three years at the time your application is received by EPF.
• EPF would require the proof of sale / disposal of ownership of the first house if the first house is purchase through EPF withdrawal.
• To buy a house that has been acquired from a rental, EPF would require purchase agreement from an authorized party.
• For the withdrawal to build a house on land bought simultaneously, the dates of the agreement to purchase the land and the agreement to construct the house must be within 6 months.

However, EPF withdrawal are NOT allowed for :

• Buy a land or a house lot only 
• Renovate, repair or do additional work to the existing house 
• Ownership of property is not via sale and purchase transaction 
• Have taken an overdraft loan 
• Buy a third house 
• Buy a house abroad

Withdrawal amount eligibility:

HOUSE PURCHASE OWNED BY INDIVIDUAL	JOINT PURCHASE WITH SPOUSE OR IMMEDIATE FAMILY MEMBER OR OTHER INDIVIDUAL
The difference between the house price with the loan amount and an additional 10% of the house priceOR All your savings in Account 2.  (Whichever is lower but not less than RM500.00)	The difference between the house price with the loan amount and an additional 10% of the house priceOR All the savings in each purchaser’s Account 2 subject to the maximum amount eligible for withdrawal. (Whichever is lower but not less than RM500.00)
100% HOUSING LOAN	PURCHASE WITHOUT LOAN / CASH PURCHASE
10% of the house priceORAll your savings in Account 2. (Whichever is lower but not less than RM500.00)	House price with an additional 10% of the house price OR All your savings in Account 2.  (Whichever is lower but not less than RM500.00)

You may decide on the amount to withdraw, subject to the maximum amount eligible stated in the Housing Withdrawal Form (KWSP 9C) (AHL).

Withdrawal amount on a cancelled house purchased previously need not be returned. It can be deducted for the current eligible amount subject to eligible balance, if any.

List of main documents required:

1. KWSP 9C (AHL) Withdrawal Form.
2. Personal Identification Card 
   • MyKad / Military Identification Card / Permanent Resident Identification Card (MyPR)
     OR
   • Police Identification Card AND Verification Letter from Employer stating that the Police number and dentification Card number refer to the same person (if without MyKad)
     OR 
   • Passport. If the member is not a Malaysian citizen and has become an EPF member before 1 August 1998. 
3. Payment Via Direct Crediting to Member’s Bank Account Note :
   • Bank Passbook / Savings Account Statement OR Current Account Statement OR Verification Letter of Account Holder’s Details from Bank
     OR
   • Account Holder’s Details Printed via Website.
   • Owns an account with the panel bank appointed by EPF
   • The bank account must still be active and Personal Account type only
   • However, Joint Account type is only allowed for withdrawal amount of more than RM100,000.00 
     (Please bring original documents for verification)
4. Payment Via Mail
   Application for Member’s Registration and Amendments of Member’s Particulars (KWSP 3)

Note: All applications shall be attached together with supporting documents.

List of supporting documents required for purchase of house from developer :

No.	(A) SUPPORTING DOCUMENTS FOR PURCHASE OF HOUSE FROM DEVELOPER	LOAN	WITHOUT LOAN
1	Sale and Purchase Agreement (agreement date is not more than 3 years from the date of application).	✔	✔
2	Housing Loan Approval Letter (if the loan approval is less than one year);ORHousing Loan Approval Letter AND Housing Loan Agreement Letter / Mortgage Form 16A / Deed of Assignment / Title Deed with your name and has been mortgaged to the financier (if the loan approval exceeds one year).	✔
3	Housing Loan Approval Letter AND Housing Loan Agreement Letter / Mortgage Form 16A / Deed of Assignment / Title Deed with your name and has been mortgaged to the financier (if the loan approval exceeds one year).		✔
4	Proof of payment of not less than 20% of the house price		✔
5	Architect’s Certificate / Payment Request Letter to confirm Progress of construction is not less than 20%ORCertificate of Fitness (CF) or Certificate of Occupation (CO).		✔
6	Purchase with immediate family members (spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings), if the applicant is not the borrower.Proof of Relationship (Marriage Certificate or Birth Certificate)	✔	✔

List of supporting documents required for purchase of house from individual:

No.	(C1) SUPPORTING DOCUMENTS FOR PURCHASE OF HOUSE FROM INDIVIDUAL TITLE DEED HAS BEEN ISSUED	LOAN	WITHOUT LOAN
1	Sale and Purchase Agreement (agreement date is not more than 3 years from the date of application).Note : If the purchase of house is from immediate family members (parents / spouses / children / siblings), the proof of purchase transaction must be submitted, which is the completed Transfer of Ownership Form (Form KTN 14A / Memorandum of Transfer).	✔	✔
2	(a) Ownership in the Seller’s Name Title Deed / Official Records Search in name of the Seller / Transfer of Ownership Consent Letter from the Land Office (if there is transfer of ownership restriction by the authority);OR(b) Ownership in the Buyer’s Name Title Deed in your name;ORTransfer of Ownership Form KTN 14A in the name of the new owner completed by the Land Office OR at least a signed Transfer of Ownership Form KTN 14A together with the receipt of submission by the Land Office.	✔
3	Housing Loan Approval Letter (if the loan approval is less than a year) OR Housing Loan Approval Letter AND Housing Loan Agreement Letter / Mortgage Form 16A / Title Deed in your name and has been mortgaged to the financier (if the loan approval exceeds one year).		✔
4	Title Deed is in your name; ORTransfer of Ownership Form KTN 14A is in your name completed by the Land OfficeORat least a signed Transfer of Ownership Form KTN 14A together with the receipt of submission by the Land Office;ORTransfer of Ownership Form KTN 14A in your name that has not been completed by the Land OfficeANDStatutory Declaration Letter (Declaration of Oath) to confirm the house purchase is genuine and will submit the completed related documents within 6 monthsANDTransfer of Ownership Consent Letter from the Land Office / State government (if there is transfer of ownership restriction by the authority).		✔
5	A confirmation letter from a lawyer’s office that handles the transaction stating that the purchase is by cash and contains details of the property.		✔
6	Proof of payment of at least 20% of the house price.		✔
7	Purchase with immediate family members (spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings), if the applicant is not the borrower.Proof of Relationship (Marriage Certificate or Birth Certificate)	✔	✔

No.	(C2) SUPPORTING DOCUMENTS FOR PURCHASE OF HOUSE FROM INDIVIDUAL TITLE DEED HAS NOT BEEN ISSUED	LOAN	WITHOUT LOAN
1	Sale and Purchase Agreement (agreement date is not more than 3 years from the date of application). Note : If the purchase of house is from immediate family members (parents / spouses / children / siblings), the proof of purchase transaction must be submitted, which is the completed Deed of Assignment.	✔	✔
2	Developer Confirmation Letter on details of the property;ORTransfer of Ownership Consent Letter from the Land Office / State government (if there is transfer of ownership restriction by the authority);OR Deed of Assignment between you and the seller, which has been completed, and with stamp duty (or produce the stamp receipt) of 1% of the sale price.	✔
3	Housing Loan Approval Letter (if the loan approval is less than a year) OR Housing Loan Approval Letter AND Housing Loan Agreement Letter (if the loan approval exceeds one year).	✔
4	A completed Deed of Assignment in your name;ORA Deed of Assignment which has not been completedANDa confirmation letter from the developer containing details of the purchased house [according to Section 22D (4) Housing Developer Act (Control And Licensing) Amendment 2007]; AND Statutory Declaration Letter (Declaration of Oath) to confirm the house purchase is genuine and if you do not proceed with the purchase or do not / fail to submit the transfer of ownership documents in your name within 6 months as required, your withdrawal application is considered cancelled and you are required to return the withdrawal amount made to EPF.		✔
5	A confirmation letter from a lawyer’s office that handles the transaction stating that the purchase is by cash and contains details of the property.		✔
6	Proof of payment of at least 20% of the house price.		✔
7	Purchase with immediate family members (spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings), if the applicant is not the borrower.Proof of Relationship (Marriage Certificate or Birth Certificate)	✔	✔

No.	(E) SUPPORTING DOCUMENTS FOR PURCHASE OF SECOND HOUSE
1	Proof of documents for second house purchased subject to the withdrawal terms imposed and stated in Supporting Documents (A) until (D) above
2	Proof of sale or disposal of ownership of first house, either one of the following:a) Ownership of Transfer Form KTN 14A in the name of the new owner completed by the Land Office or at least an Ownership of Transfer Form KTN 14A completed and signed, together with the submission receipt by the Land Office; ORNote : Any documentary evidence of relationship are required for a property transferred on love basis (subject to immediate family members only, i.e. spouse, parents, parents-in-law, step parents, foster parents, child, stepchild, adopted child or siblings).b) Deed Of Assignment AND letter of confirmation from buyer / seller’s lawyer stating that the Notice of Assignment has been submitted to the developer according to the Section 22D (2) Housing Developer Act (Control And Licensing) Amendment 2007 (for buy or sell process after 12 April 2007); OR c) Deed of Assignment between you and the new owner which has been completed and with stamp duty (or produce the stamp receipt) of 1% of the sale price; OR d) Title Deed in the new owner’s name AND Sale and Purchase Agreement between you and the new owner; ORe) Real Property Gain Tax Form 5 AND Sale and Purchase Agreement between you and the new owner (for property sale before 1 April 2007);ORf) Proclamation of Sale from Administrator (Form KTN 16I) / Proclamation of Sale from Court (Form KTN 16F);ORg) Confirmation by auction bank on property auction;ORh) Transfer of ownership by Court Order to any party AND divorce documents (for divorce cases);ORi) A formal search from the Land Office that indicates that the name of the new owner of the said property AND Sale and Purchase agreement between you and the new owner;ORj) Confirmation letter from the authorities (Housing and Local Government Ministry / Municipal Councils / District Offices / Penghulu) for houses damaged by natural disasters or abandoned housing projects;ORk) Deed of Revocation or Deed of Rescission for the first house; OR Confirmation of Cancellation  Letter from the developer / lawyer;ORl) Assessment Bills issued by the Municipal Council / local authorities in the name of the new owner and Sale and Purchase agreement between you and the new owner; ORm) Confirmation letter on house damaged by fire and as a result losing a home issued by approved authorities, such as Fire and Rescue Department / Royal Malaysia Police / local authorities / Municipal Council / Head of Village and other approving authorities; AND additional documents such as scene photos or other documents to support the application (if necessary).

Modes of payment :

1. Payment in Malaysia 
   • All withdrawal payments will be credited directly into your account subject to the following: 
     • You have an account with a panel bank appointed by EPF; 
     • Your account is still active; AND
     • Your bank account is a Savings / Current Account (personal) OR Joint Account for withdrawal amount of more than RM100, 000.00.
     • Your identification number matches with the bank’s record.
     • Payment is made in Ringgit Malaysia (RM). 
   • However, if the payment cannot be credited into member’s bank account due to causes such as bank account is not active or your identification number does not match with the bank’s record, payment will be made via banker’s cheque. 
2. Remittance of Payment to Foreign Countries
   Payment is made via Foreign Bank Draft. Types of currencies are as follows: 
   • Foreign currency as per member’s choice stated in the application form subject to the currency is available in EPF’s list for the purpose of payment via Foreign Bank Draft; OR
     • In US Dollar if the currency stated by the member in the withdrawal form is not available in EPF’s list for the purpose of payment via Foreign Bank Draft
   Note : EPF will make verification with the member again if the type of currency chosen in the application form is not available in the allowed list or before changing the type of currency to US Dollar.

Mode of submission :

Submission can be made at any EPF branch either at the counter OR via mail. 

1. Submission at the counter 
   • Please bring along ALL original documents for verification purposes
   • However, if the photocopied documents have been verified, please by the EPF Officer. ensure the authorised officer by EPF has verified the photocopies, complete with signature, name, designation and official stamp. 
2. Submission by mail
   • Please ensure that ALL documents have been verified by an officer authorised by EPF, complete with signature, name, designation and an official stamp. 
   • All applications by mail must be addressed to :
     THE EMPLOYEES PROVIDENT FUND 
     Locked Bag No. 220 
     Jalan Sultan 
     46720 Petaling Jaya 
     SELANGOR

ATTENTION AND NOTICE TO APPLICANT :

Failure to Return the Unused Amount for Withdrawal Purpose
If the applicant does not use the withdrawal payment for the purpose of the withdrawal is made, the applicant is considered as has committed an offence and shall, on conviction, be liable to imprisonment for a term not exceeding six months or to a fine not exceeding RM2,000.00 or to both [Section 58A, EPF Act 1991 (Amendment) 2007].

Incorrect or False Declaration or Furnishing False Documents
If the applicant provides incorrect or false declaration or furnishes false documents, the applicant is considered as has committed an offence and shall, on conviction, be liable to imprisonment for a term not exceeding three years or to a fine not exceeding RM10,000.00 or to both [Section 59, EPF Act 1991 (Amendment) 2007].