Probably this question has been asked many times in the past but i just unable to find one without going through many post and decide to post a new question.
Regarding the KWSP/EPF account 2 withdrawal, did anyone ever withdraw just to pay for the down payment?
I found myself short of few thousands for the 10% down payment, and wished to know what is the process on the withdrawal?

Is it we have to pay first then wait for KWSP/EPF to deposit into our account? or We wait for the EPF money to be debit into our account then paid the remaining down payment to developer?

How long will this process take? Is it everything online now? (Sorry i'm first time buyer)

And, can withdrawal also includes like Legal Fee, Stamp duty those sort of the "Addition" on top of the doownpayment?

This post has been edited by Lon3Rang3r00: Nov 29 2020, 03:53 PM

Hi. I can share with you on the practice in Sabah. Not sure if it's the same at your place. You can take it as a reference.

For EPF withdrawal, you will need to sign the SPA and get it stamped before you can submit to KWSP.
Means you need to either pay first to vendor the 10% or discuss with vendor if you can proceed with the signing and to release the money to him when you get the withdrawal from EPF.

Normally it take less than 2 weeks to get the money in your account during normal period. (not sure about now)

For EPF you can only withdraw for your 10% deposit, or monthly repayment

Hope this helps.

You are buying new build or sub sale?

If new, I think there are a somewhich is 100% loan for 1st time buyer, free lawyer fee and now HOC free stamp duty.

If subsale you can ask agent try nego with owner to pay earnest deposit 1st then after withdraw from KWSP only pay balance deposit. For bank lawyer fee you may request add in to loan, but your site lawyer fee need to pay cannot count in KWSP.

KWSP withdraw 10% deposit paid + 10% purchase price can withdraw

This post has been edited by ryukeong: Nov 30 2020, 09:57 PM

only able to withdraw from EPF account after SPA is signed and stamped, meaning you have to pay the down payment first using your cash saving.

if it is subsale unit, 99.99% seller wont let you sign and stamp without paying down payment; if it is new unit, some developers will let you sign and stamp first without paying down payment and let you bring the stamped SPA go to EPF to withdraw the money to pay them later

Talk to the seller and agreed on some amount of downpayment. The balance can be paid once epf release the money.

10% is the norm but it can also be any amount.

When I sold my house previously, buyer request to pay 5k and balance after withdraw from epf which I agreed.

Request the lawyer to state it in the SnP the stages of payment....
Eg

5k upon sign snp
15k within 1 week from epf paynent.

90% with 3+1 month fron snp date.

Apparently yours is how it goes, developer let me sign and stamp without paying down payment. And will give me a period of time to get the EPF Withdrawal done.

I wonder if i should withdraw the full 10%? Interest rate might be good now but i wonder if i can just throw in remaining into the 90% loan i got from the bank to reduce the interest.

Better not.

Because dividends from EPF > any interest from loan. Retirement money grows faster than loan interest due to the power of compounding interest 😬 especially if you're under 40, unless you confident to use money to invest in other places.

House loan if you get within your repayment capability is a kind of "healthy" loan that can prop up your credit rating and customer worth to banks if you continuously make prompt repayment, so there's no particular reason to reduce or settle early unless you're cash rich and want to keep cash around for other things, or if you're near retirement and aren't keen on keeping any liabilities around.

Even if you dump into loan most of the time it only shortens your loan tenure and you settle early by maybe 1 or 2 years. Banks rarely allow you to change instalment rate to lower so it's not really worth dumping money in

Tumpang thread, to ask question.

I've made my application on Monday, question is if EPF dont remit the money to my account before the due date set by developer, can i still pay first? Will that void anything?

No

So selamat ya? thanks.

EPF application n processed dy they won't cancel the application (I did this, payed the DP with own funds before EPF money received)

Technically speaking, it's your money, and they won't ask for proof that you've paid the downpayment with the money given, since you still give the cash anyway.

Hi Taikors,

Wanna ask if withdraw from kwsp for 10% d/p, will they call you up for banker or developer sales agent contact for verification?
Many thanks.

usually call lawyer to verify S&P

Thank you very much.
Cos just received a call from kwsp.
Felt weird when contacted.
Anyway, thanks for clarity.