Withdrawal to Purchase a House

PURPOSE

• This withdrawal allows you to utilize your savings 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.
• Buying of a house with another individual who has no kinship is allowed provided that the other individual is a buyer and borrower.
• This withdrawal allows you to buy a house from a developer or an individual or through a public auction.
• EPF Withdrawal to purchase a second house is allowed after the first house purchased utilizing EPF has been sold or disposal of ownership of property has taken place. 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'.

APPLICATION ELIGIBILITY

• (i) A Malaysian Citizen; OR
  (ii) A Malaysian Citizen who has made Leaving The Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF; OR
  (iii) A Non-Malaysian Citizen who:

• Has became an EPF before 1 August 1998, OR
• Has obtained a Permanent Resident (PR) status.
  
• You have not reached the age 55 at the time the EPF receives your application; AND
• You have a minimum savings balance of RM500.00 in your Account 2.

• You may choose to decide on the amount to withdraw from your Account 2, subject to the maximum amount eligible by filling in the desired amount in the housing withdrawal Form 9C (AHL).
• You may have made a housing withdrawal before but have cancelled the purchase of the house and now you wish to make this withdrawal to purchase a house. In this situation, the amount withdrawn need not be returned to the EPF. The earlier withdrawn amount will be deducted from the current eligible amount subject to the balance eligible (if any).

A. MAIN DOCUMENTS
1.1 Form KWSP 9C (AHL)

1.2 Malaysian Identification Card (MyKad)/ Military Identification Card/Permanent Resident Identification Card (MyPR).
OR
Police Identification Card affixed with your right and left thumbprints on its copy and a letter from your employer confirming that your police number and Identification Card number refer to the same person.
OR
Passport if you are a Non-Malaysian citizen who has become an EPF member before August 1998.

1.3 Your Personal Savings Account Passbook / Statement OR the original copy of Personal Current Account Statement OR Individual Joint Account (for withdrawal exceeding RM100,000.00):

• The bank account must be active.

• The bank account must be with a Panel Bank approved by the EPF.

1.4 Sale & Purchase Agreement (purchase from developer) OR Proclamation of Sale from Administrator / Court (public auction purchase) which contains the name of the member or names of all members (for joint purchase) and the date of execution does not exceed 3 years on the date the withdrawl application is received.

1.5 If a housing loan is involved, the following documents will have to be produced:

• Housing Loan Approval Letter (if the loan approval is less than one (1) year from the date the withdrawal application is received); OR
• Housing Loan Approval Letter and Housing Loan Agreement/ Mortgage Form 16A (if the housing loan approval has exceeded one year from the date the withdrawal application is received).

1.6 Proof of relationship (for joint purchase involving spouse or next of kin namely parents or siblings. For joint purchase involving next of kin, the member is required to submit an explanation letter stating the reason for the joint purchase.

• All documents in paragraph 1.1 to 1.6;
• If it is a cash purchase, the following additional documents must be produced:
  

C. PURCHASE FROM INDIVIDUAL

• All documents in paragraph 1.1 to 1.5;
• If the purchase is from the next of kin (parents/ spouse/ children/ siblings), you have to produce the proof of transaction which in this case refers to Transfer of Ownership Form (Form KTN 14A) / ‘Deed of Assignment/ Memorandum Of Transfer;
• If the purchase is made with a loan, the following additional documents must be produced:
  

• If the purchase is made by cash, the following additional documents must be produced:
  (a) A confirmation letter from a lawyer’s office that handles the transaction stating that the purchase is by cash;
  (b) Proof of payment of at least 20% of the price of the house; AND
  (c) If Form KTN 14A OR Deed Of Assignment in your name as mentioned above has not been processed by the Land Office, the following documents are required:
  

D. Purchase Of Land And Construction Of A House As A Package

• All main documents in paragraph 1.1 to 1.6;
• Construction Agreement for the house containing your name or the names of all applicants for joint withdrawal is executed not more than 3 years from the date the application is received by the EPF;
• Sales and Purchase of Agreement of the land in your name or the name of all applicants for joint withdrawal and the date of agreement is within 6 months with the House Construction Agreement;
• Title Deed of the land in the name of the seller/ developer;

• Power of Attorney that has been registered at the court if the purchase of land and house construction is made through Power of Attorney;
  
• Proof of relationship (for joint purchase involving spouse or next of kin namely parents or siblings. For joint purchase involving next of kin, the member is required to submit an explanation letter stating the reason for the joint purchase.

• If the purchase has been made by cash, the following additional documents must be produced:
  (i) A confirmation letter from the developer stating that purchase is by cash; AND
  (ii) Proof of payments of at least 20% of the price of the house; AND
  (iii) Architect’s Certificate to confirm progress of construction is not less than 20%.

D. Withdrawal To Purchase A Second House

i) Documents as proof of purchase of second house as in paragraph A to C whichever is relevant; ANDii) The following Proof of sale or disposal of ownership of the first house, whichever is relevant:

a) Ownership of Transfer Form KTN 14A in the name of the new owner(s) duly completed and endorsed by the Land Office or house ownership transfer because of love and affection (to the nearest family member (s) including parents / children / spouse / siblings together with proof of relationship); OR

b) Deed Of Assignment; AND letter from seller’s/buyer’s lawyer which confirms that the Notice of Assignment has been produced and received by the developer under Section 22D (2) Housing Developer Act (Control And Licensing) Amendment 2007 (for property transactions after 12 April 2007);

c) Deed Of Assignment between you and the new owner; OR

d) Land Title Deed in the name of the new owner AND Sale and Purchase agreement between you and the new owner; OR

e) Real Property Gain Tax Form 5 AND Sale and Purchase agreement between you and the new owner (for property sale before 1 April 2007); OR

f) Form KTN 16F (Perakuan Jual oleh Mahkamah) or Form KTN 16I (Perakuan Jual oleh Pentadbir Tanah); OR

g) Confirmation of property auction by the bank; OR

h) Transfer of ownership by Court Order to any party AND divorce documents (for divorce cases); OR

i) A formal search from the Land Office that indicates that the name of the new owner of the said property AND Sale and Purchase agreement between you and the new owner; OR

j) Confirmation letter from the authorities (Housing and Local Government Ministry/ Municipal Councils/ District Offices/ Penghulu) for houses damaged by natural disasters or abandoned housing projects; OR

k) Deed Of Revocation or Deed of Rescission; OR Confirmation Letter from the developer/lawyer on the cancellation of the purchase; OR

l) Assessment Bills issued by the Municipal Council / local authorities in the name of the new owner AND Sale and Purchase agreement between you and the new owner.