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..

Sometimes they really set the rules that make no sense.. Example I take 20k at age 27 to clear my first house then after 20 years.. I got 300k at account 2 but I cannot use to buy or purchase 2nd house with it... I need sell first house only can buy..

Aiyo aiyo, u still can withdraw your ACC2 money from time to time to pay installment or clear part of the loan amount or settlement for your loan acc. You can check my reply few post above you.

You work as what? can have rm300k in ACC2 after 20 years?

I work like shet for 10 years only get like rm40k total

Pls share.

Maybe I rephase, I mean

Age 27
Acc 2 got : 20k
1st House installment left 20k= Take EPF clear it out.

after 20 year
Age 47
Acc 2 got : 300k(just example la, maybe 100k etc. My Director got few hundred K on EPF.)
1st House debt already clear 20 years ago.
Intend to buy 2nd house however cannot take EPF to buy 2nd house because first house not yet sold

LOL..yes if ur acc2 got 300k ...ur acc1 at least 700k+ di..

peri is right..u can still use it for other purpose other than to purchase 2nd house..

no need to wait for that many years

now u can go to kwsp to apply out for loan installment purpose. go bank get a "bank loan statement" and pass to KWSP, kao tim, every month kwsp will bank in the installment money to ur acc. U can use it what ever u like.

BTW I age 26.. Account 2 only got 20k like that. Per year acccount 2 increse 9k more or less.. Hope this year can convert to USD as transfering to corp

Ooooo.. Write it now. It good can use in future. Now saving more on account 2 for DP

yup, i withdraw it out and put it safe in my pocket rather than misuse by government

how to know full flexi or not.. hmm

If your loan acc is charging u rm10 as arrest fee every month, then it is full

Dear sifus around Internet land,

I hope someone could help me with this. I have zero knowledge on epf withdrawal on acc 2.


This is my situation:
1. Snp signed on year 2010
2. Have not touched my acc 2 ever.
3. I have a flexi loan for my housing loan

My question is can I withdraw the money from acc 2 into my savings acc or I need to opt for the other option which is reduce principal which will be transferred into my loan account?

Secondly can I still withdraw money from loan account and what's the procedure like ?

Please help. Need the money for home.

Dear sifus around Internet land,

I hope someone could help me with this. I have zero knowledge on epf withdrawal on acc 2.


This is my situation:
1. Snp signed on year 2010
2. Have not touched my acc 2 ever.
3. I have a flexi loan for my housing loan

My question is can I withdraw the money from acc 2 into my savings acc or I need to opt for the other option which is reduce principal which will be transferred into my loan account?

Secondly can I still withdraw money from loan account and what's the procedure like ?

Please help. Need the money for home.super broke

Hi,
You chosen option 2 meaning the epf bank in to other account of you (not loan account) right?

Some question here :
Can i apply epf to renovate my mum in law house ? As the s&p not under my name. Nothing is related but i wanna use epf fund from acc2 to renovate?

Thanks

NO.

No.

In anycase, they will NOT credit any money into your personal account, cause too many ppl will abuse and use the money for something else.

2015 also no?

2015 also no?

so basically we cannot apply EPF to renovate the house? .... hmmm

Try use online epf withdrawal, click buy/build house, fill in the rest. There is a portion you can choose For Renovation.

Test and see

Sure bo bro, if not mistaken, i think that column is means for those with residential land and intend to self build the bungalow plus renovation.

ill give a try , thanks bro

EPF does not allow Employee to withdraw for Renovation. I did check and they do not have this facilities available. If you have an empty land, you are allow to withdraw to "Build a house for residential purpose". But there are some TnC to comply with.

EPF does not allow to use Renovation as the reason to withdraw, using the online system will tell you the reason once you choose Renovation

for first time withdrawal, it will credit to your bank account... so it is really up to you on what you do with the money...

i just withdrawn last month... i paid the 10% 2 years ago and now use this withdrawal for my wedding instead...

ic.. thanks guys

There are 3 options on housing epf withdrawal:
1. Buy or Build House (you can only withdraw 2 times in your whole lifetime)
2. Reducing Loan
3. Reducing Monthly Installment

I heard a trick from my friend, by using method 2, the money will directly send to your loan account. If you have flexi account, you may draw it out using ATM. But this will also have 2 times limit if not mistaken.

bro
method 2 how does it works ? EPF make 1 time payment or monthly payment to your account ???

1 time payment. If you want monthly payment, please use method 3, and choose how many months you wish to have, but must your own withdrawal limit.

bro , method 2 can withdraw for my 2nd house ? i already withdraw EPF acc 2 for my 1st house for 10% downpayment

Withdraw for 10% down payment is option 1. You can use method 2 for 2nd house, provided that your 1st house is not under your name anymore. This is KWSP rule, only applicable for one house at a time.

Cannot bro, until your 1st house was sold or change ownership without your name in the S&P ( such as MOT transfer to wife, parents, so )

too bad

just perform method 2 on your first house

NOT qualified liao

i withdraw for my 1st house few years ago
now the house still under my name


haizzz

can epf use to offset the downpayment? let say downpayment 10%, then i got cash rm30k, but house is 500k, so 20k i got at acc2 can use for it?

yes u can, only for your 1st property . good luck

For your 1st house, method 1, 2, 3 all can use one. Now epf has your 1st house record, you can proceed to method 2 immediately.

It is not limited to 1 house 1 method only, all methods can use 1 time for a house.

huh ?
then i can apply 1 time payment for my 2nd house ?

fyi , i already withdraw from epf for my 1st house few years ago, now the still my name

This can be done for second house after the disposal of first house. Disposal from EPF context not only sell off, it can be transfer of name because of love and affection, due to natural disaster, or even an abandoned housing project.

http://www.kwsp.gov.my/portal/documents/10..._D8_Jun2014.pdf

"Disposal of ownership means loss of ownership of the first house owned through previous EPF withdrawal 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."

There is a new withdrawal faciltieis from EPF call Flexible Housing Withdrawal, which you can use "monthly contribution to the EPF is considered as an income".

Read the eligibility and terms and condition carefully.

http://www.kwsp.gov.my/portal/documents/10..._Withdrawal.pdf

FYI, EPF provide 3 options for us to withdraw money on property part:
1. Buy or Build house
2. Reduce loan
3. Reduce monthly installment

each option can only use 1 time.

In your case, you have House A and House B. You already used up Option 1 in House A, so your House A left option 2 and 3 that can be used. Just like you have 3 chances and now left 2 chances.

If you want to use any option on House B, House A must be disposed, means you are not the owner for House A anymore.

option 2 & 3 cannot use for /house B ? if house A still under my name ??

Yes cannot like that, but you can use Option 2 & 3 for house A.

too bad, i disqualified liao

You already finished House A loan?

yes loan settled for house A

pls guide me

Sorry Bro no other way. If your House B has joint name, can request your partner to apply.

tooo bad

like that have to work hard for money liao

sorry write wrong

This post has been edited by Kira90: Nov 25 2015, 04:58 PM

Hi there, under what kind of withdrawal did u apply?
Im planning to withdraw acc 2 for renovation so i need the lump sum to be creditted to my bank account.

it is for the 10% downpayment withdrawal... so you need a valid SNP not more than 3 years signed..

if im the second house purchase now, can i still apply epf 2nd account for my 10% DP for my 2nd house purchase ? provided i didn't touch anything during the 1st house purchase?

Please advice.

If I have applied for option 3, can I apply for another time with the same house?? Please advise. Thanks.

Hi, for option 2 withdrawal.
The fund pay lum sup to Hloan account or saving account? If is Hloan account, the fund pay all into principal or will be as floating amount in Hloan account?

Hi If I want to buy a property outright in cash for about rm150K, can I withdraw from my epf to do so? Thanks

can ma. just submit copy of s&p. can take out from account 2.

if u have not withdraw before for other house OR that house already been sold off.

ninja this thread

can I withdraw KWSP for a house I purchased Nov 2017 (1 and a half years) renovation purpose? How to proceed? Use monthly repayment loan plan so KWSP direct credit to my savings acc??

Thx for guidance