EPF Withdrawal

• EPF allows you to utilise your saving from Account 2 to partially finance your purchase of a house individually OR jointly with your spouse or close family members namely parents or siblings.

• EPF Withdrawal to purchase a second house is allowed after the first house purchased utilising EPF has been sold or the ownership has been disposed of. Disposal of ownership refers to ‘loss of ownership of the first house owned by you either 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’.

 

Withdrawal to Purchase A House

Your EPF Savings Account

Your EPF Account is where all your monthly contributions and that from your employer are credited into.

Effective 1 January 2007, the Account is divided into two parts, namely Account I and Account II. Contributions received on your behalf from your employer will be credited into the two accounts according to the following percentages:
a) Account I – 70% of monthly contribution.
b) Account II – 30% of monthly contribution

These accounts are created for different purposes, and different types of withdrawals are applicable on each accounts:

  Account I Account II
Percentage of Monthly Contribution 70% 30%
Purpose of Account - Retirement
- Investment
- Owning a house
- Settling balance of house loan (first house)
- Education for you and your children
- Medical expenses for you and your children

 

Eligibility and Limit of Withdrawal

House Purchased by Individual Joint Purchase with Spouse or
Immediate Family Member or Other Individual
Withdrawal Limit:
The difference between the house price and the loan amount, plus an additional 10% of the house price
OR
All your savings in Account 2
The difference between the house price and the loan amount, plus an additional 10% of the house price
OR
All the savings in each purchaser’s Account 2 subject to the maximum amount eligible for withdrawal


Purchase by Cash Purchase without Loan / Cash Purchase
Withdrawal Limit:
House price with an additional 10% of the house price
OR
All your savings in Account 2
(Not less than RM 500.00)
Withdrawal Limit:
House price with an additional 10% of the house price
OR
All your savings in Account 2
(Not less than RM 500.00)