Did you know if you’re an employed Malaysian on a monthly pay, you are entitled to use your Employees Provident Fund (EPF) Account 2 to purchase your dream home, pay off a loan or to even pay for your medical expenses? Well, whether you’re planning to buy a property as a Malaysian citizen or Permanent Resident, you will be entitled to such additional benefits! Here are a few tips in using your EPF Account 2 for your next dream property.
1. Understand differences between EPF Account 1 and 2
If you have been working for numerous years, you will have enough money in your EPF to help with additional savings. The money you have accumulated in your EPF will be divided into two accounts: Account 1 and Account 2. Account 1 is meant for your retirement; which means you are not allowed to withdraw 70% that is taken from your monthly wages before you’re 55 years old. However, you can withdraw from Account 2 which accounts for 30% that is taken from your monthly wages, if you require extra funds to purchase a home, fund your children’s education or pay for medical expenses.
2. Check your eligibility
You need to be a Malaysian citizen or a Permanent Resident. Then, you need to check if you have a minimum savings balance of RM500 in Account 2. You also have to be below the age of 55 upon application. Your property intended for purchase must be for residential purposes only. In addition, the application is only valid within three years of signing the Sales and Purchase Agreement (SPA).
3. Confirm required documents
You can walk into any EPF office to submit the KWSP 9C (AHL) (D5) Withdrawal Form, along with the supporting documents. An alternative way is to submit the documents via mail. The list of supporting documents that you will need is the original copy of the SPA, a photocopy of your Identification Card (myKad or Passport), a copy of the letter of loan approval from your end-financier, your bank account information in the form of a passbook or a bank statement, and your proof of relationship if you are applying for joint purchases that involve your spouse or next-of-kin, parents or siblings.
For joint purchases involving a next-of-kin, you are required to submit an explanation letter stating the reason for the joint purchase.
You are required to pay for upfront costs such as booking fees, downpayment, lawyer fees and stamp duty for the SPA before you are able to apply for a withdrawal.
4. Apply for withdrawals
You can apply manually or online using your i-Akaun. If you have not registered yet, register for your i-Akaun at your nearest EPF kiosk or counter. You will be given a temporary username and password; then visit the official site within 30 days.
In addition, there are various types of available withdrawals that can be carried out from your EPF Account 2, such as the following:
- Age 50 withdrawal
- Withdrawal to reduce/redeem housing loan
- Housing loan monthly instalment withdrawal
- Flexible housing withdrawal
- PR1MA housing withdrawal
- Health withdrawal
- Leaving country withdrawal
- Education withdrawal
- Pensionable Employees Withdrawal And Optional Retirement Withdrawal
- Members’ Investment Scheme
- Withdrawal to purchase/build a house
- Withdrawal of savings of more than RM1 million
- Death withdrawal
- Hajj withdrawal
With this added knowledge, you can plan your finances better. Spread the word to your loved ones so that they can benefit too! For further enquiries or additional information you can refer to the official site or contact us at [email protected]!
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