FAQ Related To Housing Loan Monthly Instalment Withdrawal
GENERAL1. What does Housing Loan Monthly Instalment Withdrawal mean? This withdrawal enables you to withdraw savings from your Account 2 to pay for the monthly instalment of a housing loan taken for the purpose of buying or building a house. 2. Is this a new withdrawal or an improvement on an existing housing withdrawal? This withdrawal is a new withdrawal that is different from the existing housing withdrawal. APPLICATION ELIGIBILITY3. Who is entitled to apply? You may apply if you are:
TERMS OF WITHDRAWAL4. Are you eligible to apply if you are the house buyer but not the borrower of loan or vice-versa? NO. You must be the named buyer / builder and borrower of a loan to buy / build a house / a shop house with residential unit. 5. What types of houses are allowed for monthly withdrawal? Types of houses allowed for this withdrawal include a residential house or a shop house with residential unit. 6. Can I withdraw my savings from the EPF if the loan is made from an individual? NO. Only loans from allowed financial institutions are considered. Loans from individuals or unauthorised financial institutions will not be considered for this withdrawal. 7. What types of loans are eligible for this withdrawal? The loans taken must be for the purpose of buying or building a residential house or shop house with residential unit. The loans must have been fully disbursed by the financial institutions and the house has been mortgaged to the financier. 8. Is a refinance loan eligible for this withdrawal? For withdrawals involving a refinanced loan, the outstanding balance accountable for the withdrawal is outstanding balance of the first financier (release letter) or the latest outstanding loan amount, whichever is lower. 9. Can this withdrawal be made for any house or is it restricted to the withdrawal made for the existing house? This withdrawal can be made for any house either for a house you have already withdrawn for or a new house. 10. Can this withdrawal be made for a house located out of Malaysia? No, this withdrawal is only eligible for a house located in Malaysia. 11. Can this withdrawal be made for a second house or for more than one house? The withdrawal is for the purpose of paying the monthly instalment for a house for each member. The subsequent withdrawals (if there is outstanding loan amount) may only be made for the same house. 12. If this is my first time withdrawing, when will I be eligible for the subsequent withdrawals? You may make subsequent withdrawals for the same house (if there is still outstanding loan amount) at any time and the soonest is within 30 days before the date of the last monthly instalment cleared. 13. Can this withdrawal be made concurrently with another housing withdrawal? You may make simultaneous withdrawals at any one time. However, if the housing loan monthly payment withdrawal is made concurrently with another withdrawal (example, withdrawal to reduce housing loan), the amount eligible to be withdrawn for the housing loan monthly payment will be taken into consideration to determine the latest outstanding loan amount for the withdrawal to reduce housing loan. 14. What is my loan repayment period extends well after I am 55 years old? You are eligible to withdraw the monthly payments amount in the number of months up to your 55 years age. AMOUNT ELIGIBLE TO BE WITHDRAWN15. How much can be withdrawn? The amount that can be withdrawn via the monthly payment method is the available amount in your Account 2 at the time of applying. 16. What is the minimum amount that can be withdrawn? The minimum monthly amount that can be withdrawn is RM100.00 a month for a minimum period of 6 months. 17. What is the maximum amount that can be withdrawn? The maximum amount that can be withdrawn may not exceed the monthly instalment amount that you pay to the bank every month and subject to the available amount in your Account 2 at the time the application is submitted. 18. What is the maximum period allowed? The maximum period is subject to the number of months remaining for your housing loan repayment period as determined by your financier. 19. What do I need to make a joint-withdrawal? The amount eligible for withdrawal may not exceed the total monthly instalment amount o the financier. This means that the second and subsequent applicants may only withdraw the difference between the first applicant withdrawal amount against the actual monthly instalment amount. 20. When will the payment be credited into my bank’s account? You will receive your monthly payment in your account at the same date the first payment is made. WITHDRAWAL CANCELLATION21. Can I cancel my housing monthly payment withdrawal which has been approved by the EPF? You may cancel the monthly payment withdrawal after 1 year from the date the withdrawal was made. For this purpose, you may complete a Withdrawal Cancellation Form and submit to any EPF office. 22. Will I be able to re-apply for withdrawal after my cancellation? Yes, after cancellation of monthly payment withdrawal, you may apply a new withdrawal to restructure the amount and repayment time period according to the new available balance in your Account 2, as long as it does not exceed the existing repayment period with your financier. 23. Can the EPF cancel my withdrawal? The EPF reserves the rights to cancel your monthly payment withdrawal based on the following circumstances:
The withdrawal will also become null and void if you, or your heir(s), have made a full withdrawal either under Incapacitation Withdrawal, Death Withdrawal and/or Leaving Country Withdrawal.
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