Hi All,

I am planning to withdraw money from my kwsp acc 2 to pay for my studies which does not quality for education withdrawal, therefore i plan to do it another way by applying to withdraw the acc 2 through the option to reduce/redeem house loan.

If i am correct once approved the amount will be credited directly into my existing house loan account am i right? If yes will the bank consider it as an advance payment or prepayment? I have read that if advance payment since i am having a semi-flexi account i can redraw but if prepayment i will not be able to redraw.

Anyone have similar experience before?

Appreciate your comment. Thanks

No, the amount will be credited directly to your personal bank account.

for house loan redraw.. u need a recent SNP

u have that?

then it will be a huge relief

i have the original snp signed back in 2014
just only applied through the kwsp portal, already submitted, no additional documents required, only fill in the blanks like when the loan approved, loan amount, date snp signed, etc

The amount goes to your personal account if do the monthly 1

If I remember correctly, the SNP cannot be more than 3 years in order to qualify.

i applied for a lump sum, reduce/redeem housing loan, not the monthly installment payment

really? i didnt see it mentioned anywhere in the webpage
anyway ive submitted, let's see how

Only says this

"Full payment in Ringgit Malaysia (RM) will be credited to your account
If you hold an active account with our panel bank and your identification no. matches the bank records"


https://www.kwsp.gov.my/en/member/withdrawa...artial/buy-home

Got write in the website

"Proof of Purchase
Sales and Purchase Agreement (not more than 3 years from the date of application)"

https://www.kwsp.gov.my/en/member/withdrawa...artial/buy-home

For lump sum withdrawal, it will be paid straight to your bank loan account. You can’t take it out tho as its not allowed by EPF.

But you can stop paying monthly mortgage for months equivalent to full sum withdrawn earlier.

not buy home but reduce-redeem housing loan

https://www.kwsp.gov.my/member/withdrawals/...em-housing-loan

this

ok that make sense but will epf really instruct bank to now allow withdrawal from loan account? i thought once released to bank their role is done, it is up to the applicant to keep it there reducing interest or withdraw..

I think this is for a lump sum and it says here directly to the house loan account

"All withdrawal payments will be credited directly into yours or your spouse’s housing loan account when you meet the following criteria.

You/spouse has a housing loan account with a panel bank appointed by the EPF; AND
Your/spouse’s loan with the EPF panel bank is not in the non-performing loan (NPL) status
Your/spouse’s loan account is still active
Your/spouse’s identification number as a borrower matches with the bank’s record
Payment is made in Ringgit Malaysia (RM)"

https://www.kwsp.gov.my/member/withdrawals/...em-housing-loan

Only the monthly is into your personal account. I think that is why I went with the monthly 1 long time ago.

This post has been edited by blurjoey: Apr 23 2021, 05:59 PM

Don't do that. It's not worth it if EPF finds out.

i just did balance reduction via kwsp last month.
its considered as prepayment which balance got reduced, not advanced payment, which mean you still need to pay your installment like usual

TS, trying to game EPF system by cheating.

The amount when taken from acc2 cannot be withdrawn as cash. It'll go straight to reducing the loan balance. I can confirm as I just did this.