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 KWSP/EPF Withdrawal for Downpayment

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DragonReine
post Dec 15 2020, 09:06 PM

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QUOTE(Lon3Rang3r00 @ Dec 3 2020, 04:35 PM)
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.
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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
DragonReine
post Dec 23 2021, 12:48 PM

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QUOTE(deleted @ Dec 22 2021, 08:36 PM)
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?
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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.

 

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