Gd day to all, have anyone tried to apply for EPF withdrawal in purpose of house renovation?
I have heard from my colleague that we can do so and the money from acct 2 will be credited to our personal acct

Have anyone done it before?

Does not matter if for house reno or etc..u can withdraw from ur acc 2 as long as ur s&p is not more than 3 years from date of withdrawal application..
u can withdraw all ur acc2 as long as it does not exceed the difference from loan amount & house price + 10% of house price

I think he wanted to know if it is possible to withdraw the amount for house renovation.

The answer should be no. There is no provision for it. Only can withdraw to offset your housing loan amount

Oic... My S&P is way back in the year 2008. Check with my colleague again.

He told me we can withdraw from acct 2 in purpose for reducing the loan amount and the money will be credited to our personal acct. Thus we can used it for renovation purpose...

Is it true? Anyone have tried it before?

yes I get it..
I am saying that if he has not utilized his acc2 yet (havent withdraw before for house), he can actually withdraw it out like as if to purchase a house..

but if he did, he can apply for the other type of withdrawal to redeem/reduce housing loan..

2 ways to go about it..

yes u can withdraw to reduce house loan..
but I know epf will credit it straight to ur housing loan account...

Saw that there's a few type of withdrawal here:-

1. Mengurang/Menyelesaikan Baki Pinjaman Perumahan
-Directly credit to the housing loan account

2. Ansuran Bulanan Pinjaman Perumahan
-Directly credited to our personal account

For the option 2 anyone have any idea either it will be credited to our account on monthly basis or one lump sum based on the period that we request for?

Yes, u can do what ever u like with the money as long the repayment is in order

There are 2 option to withdraw out for loan repayment or settlement purpose from Acc2

Option 1:

Withdraw all from Acc 2 and directly bank in to loan account to offset. (KWSP will directly bank in). If u r on full flexi, then u cannot touch the money since it is in loan acc and not your saving acc. If u r on semi flexi, once transferred to loan acc, then u can call up bank to transfer out to ur saving acc with a standard charges

Option 2:

Withdraw from Acc 2 according to your loan monthly repayment amount into your saving account. Says u have rm10k in Acc 2, and your monthly repayment is rm1k, then u can apply for 10 months auto debit into your saving acc directly. No more loan acc for this.

I had chosen option 2 because im on full flexi.

After I read all your post here... I have a question!!

If there any way that we could withdraw EPF money to settle housing loan which NO name in S&P??

So sorry to tell you that the answer is No. This is because >> My S&P is way back in the year 2008

You property S&P has to be <3 years from now. My partner applied for the acc2 withdrawal under option 1, her property s&p is dated aug 2010 and I went thru' the application with her at kwsp office.

She got the $$ (into personal bank acc) after 1.5 week, very prompt service by kwsp



This post has been edited by kimusu2002: Mar 12 2013, 01:01 PM

Peri Kor, that means Semi better than full? Until now i also not understand between semi & full.

Bro... How to know my loan is under Semi or Full Flexi?

easy, if everyone got include rm10 arrest fee, then its full flexi

Depends, some banks dont have full flexi but only have semi flexi.

I will keep one full flexi to park all my money there to offset some daily rest interest.

Very rare to find someone who knows their stuff. Bely good TQ!


This article Full Flexi vs Non-Flexi vs Semi Flexi loans is a good place to start your understanding.

Semi can withdraw out from saving but annual interest or fixed interest & Full can reduce interest per daily? I am correct?

1 question.. I heard from my previous lawyer firm before.. He mentioned if use EPF.. Only can use 1 house right? Cannot use on another house unless u sold it? izzit that right?

yes its correct

Thanks.. It's mean even we clear all debt from bank but we cannot use our EPF contribute to new house?

hey cpu, yes the rule is that the 1st house that utilized the money before must be disposed of first before u can use ur acc2 again for 2nd house(doesnt matter if ur property is fully redeemed or not)...
dont know why like that..but that is the rule for now..