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> EPF withdrawal to reduce house loan

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PACINO
post Oct 1 2014, 03:46 PM

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Joined: Aug 2005
From: Petaling Jaya , Selangor


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 ? )


PACINO
post Oct 1 2014, 04:36 PM

On my way
****
Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


QUOTE(supersound @ Oct 1 2014, 04:29 PM)
Bank will happy with it, but not you after 10 years whistling.gif
*
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.


PACINO
post Oct 1 2014, 05:33 PM

On my way
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Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


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.
PACINO
post Oct 2 2014, 01:50 PM

On my way
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Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


Any one knows ?
PACINO
post Oct 2 2014, 03:54 PM

On my way
****
Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


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 smile.gif

Cheers for the info. It helped a bunch!! Cheerios!!
PACINO
post Oct 2 2014, 05:38 PM

On my way
****
Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


Unfortunately , i am not a bumi.
PACINO
post Oct 2 2014, 07:29 PM

On my way
****
Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


for putting money into EPF , that is totally possible for sure.
PACINO
post Oct 9 2014, 06:25 PM

On my way
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Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


what i meant is that you can put your money into EPF , they welcome that.
PACINO
post Oct 21 2014, 05:42 PM

On my way
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Senior Member
693 posts

Joined: Aug 2005
From: Petaling Jaya , Selangor


There are conditions , but here's the link :

http://www.kwsp.gov.my/portal/en/member/me...lf-contribution

 

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