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EPF withdrawal to reduce house loan
PACINO
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Oct 1 2014, 03:46 PM
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i have a question on this EPF withdrawal for monthly installment.
Scenario :
I have already withdraw lump sum at my account 2 , for this house (First house ) ( Cleared the account 2 botak botak already ). Now my account 2 begin to stock up back ( Monthly epf contribution for acct 2 would be close to RM 600 per month ) - i think already stock up about 2-3 months.
My intentions :
To withdraw monthly installment of RM 500 per month to help reduce my loans load per month. ( My loans about RM 2700 per month currently for this house ) Intentions so that i would only need to pay RM 2200 per month to service my loans. Gives me much more flexibility and not tying up my cash flow every month.
Can this work ? ( Can i actually pay RM 2200 per month only with these EPF monthly withdrawal paying the balance ? )
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PACINO
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Oct 1 2014, 04:36 PM
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QUOTE(supersound @ Oct 1 2014, 04:29 PM) Bank will happy with it, but not you after 10 years Not really , bank is still only receiving what installment which is supposed to be paid - a.k.a RM 2700. ( Of course i am not paying up the principal earlier ) If i do not touch the epf money , i will still need to cough up RM 2700 per month , which in turn means i have to allocate additional RM 500 per month from my salary.
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PACINO
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Oct 1 2014, 05:33 PM
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yeah , you are right logically , but if currently i have very low disposal income to use , it might be much wiser to release the burden now , rather than having only RM 500 to use for the month. ( Mind you , it's either it eats into my saving per month , hoping that salary will increase further coming year , or either eat roti for the months lor.)
Somehow , taking EPF looks like a wiser choice. I am running on single income , with a young family to manage. Every cent in our disposal would be much handier incase of emergencies. Anyway , this post was not to discuss my financial standings , rather was to find out whether the bank would treat the monthly installment as my repayment monthly , and hence i could pay less each month. Second , would it be possible for EPF to do so , as i would be almost drawing down my acct 2 all the time. ( In 600 , out 500 each month ) I have already withdraw my acct 2 previously for downpayment and fixtures in home.
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PACINO
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Oct 2 2014, 01:50 PM
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Any one knows ?
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PACINO
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Oct 2 2014, 03:54 PM
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Thanks for highlighting it. It means i need to constantly draw down for 6 months basis each time. Okay , i will have to weather it for the first year until salary improves Cheers for the info. It helped a bunch!! Cheerios!!
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PACINO
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Oct 2 2014, 05:38 PM
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Unfortunately , i am not a bumi.
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PACINO
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Oct 2 2014, 07:29 PM
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for putting money into EPF , that is totally possible for sure.
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PACINO
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Oct 9 2014, 06:25 PM
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what i meant is that you can put your money into EPF , they welcome that.
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PACINO
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Oct 21 2014, 05:42 PM
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