to take out account 2 savings from kwsp is it worth it? or just remained in epf for the interest returns?

how to calculate to check whether which one is better? tahnk you for the advice !

apologies if repost.

Taking out from your EPF to repay your house loan is worthwhile if the interest incurred on the loan is higher than EPF's annual returns. I would suggest you compare the last 5-year average of both to make a decision.

There is no wrong or right answer .... depending what you want to achieve at the end.

From investment perspective, which gives you better returns for the same amount of money.

Currently ...

EPF ...

10,000 x 6.1% = 610 per year.

HL ....

10,000 x 3% = 300 per year.

Nett savings .... 610 - 300 = 310

If HL interest is above 6.1%, then you 'lose' money.



Others will depends on individual personal reasons and sometimes decisions is not always about the 'money'.

This post has been edited by mini orchard: Mar 17 2022, 06:12 PM

Definitely KWSP's interest is higher than house loan's interest. Not worth to withdraw KWSP to pump in house loan.

There are 2 scenarios which I can think by settling the loan using EPF giving advantages

1) foreseeable BNM is going to raise the OPR & the housing loan taken is floating loan. The efffective interest % will increase & it off-set the interest rate given by EPF. This one I don”t think BNM will raise the OPR drastically , hence it will be highly unlikely event.

2) You want to free up the commitment so that you can get higher margin of financing from the bank for your next property purchase.

3% vs 6%