With property price on the rise, more and more people are considering EPF withdrawal in order to help fulfil their dreams of owing a house. What do you need to know when it comes to withdrawing EPF to finance the purchase of a property? Here, we share with you 7 important things that every purchaser needs to know:
(1) Why are you withdrawing the savings?
(2) Who can apply to withdraw?
(3) Can I withdraw my EPF to purchase a second house?
Withdrawal to purchase a second house is allowed, provided the first house is sold or disposal of ownership of the first property has taken place.
“Disposal of ownership” means ‘loss of ownership of the first house owned through previous EPF withdrawal’ either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase.
(4) What are the terms of withdrawal?
(5) You CANNOT withdraw EPF for following purpose:
(6) How much can you withdraw?
(7) How do EPF pay you?
Upon full documents being received and application being approved, payment will be credited directly to member’s bank account with a panel bank duly appointed by EPF (most commercial banks are on this panel). Your bank account, of course, must be active and make sure you provide EPF with correct account number!
Useful link: http://www.kwsp.gov.my/